HOUSE OF REPRESENTATIVES

H.B. NO.

625

THIRTIETH LEGISLATURE, 2019

H.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO THE DEPARTMENT OF HUMAN RESOURCES DEVELOPMENT.

 

 

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

 


SECTION 1. Section 11-1.6, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:

"(e) The chief election officer shall be paid a salary not to exceed eighty-seven per cent of the salary of the director of [human resources development.] taxation."

SECTION 2. Section 23-8, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) All employees shall be hired by the auditor subject to the approval of the president of the senate and the speaker of the house of representatives and shall serve at the auditor's pleasure; provided that in the establishment of the salary of each employee, the auditor shall consult with the department of [human resources development] budget and finance and shall follow as closely as possible the recommendations of the department; provided further that effective July 1, 2007, the salary of the first assistant or first deputy shall be not more than ninety-two per cent of the salary of the auditor."

SECTION 3. Section 23-12, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

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

(1) Beginning 2014 and every five years thereafter, the auditor shall submit a review of the special, 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 2015 and every five years thereafter, the auditor shall submit a review of the special, 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 2016 and every five years thereafter, the auditor shall submit a review of the special, 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 2017 and every five years thereafter, the auditor shall submit a review of the special, revolving, and trust funds of the office of the governor; the office of Hawaiian affairs; and the department of education;

(5) Beginning 2018 and every five years thereafter, the auditor shall submit a review of the special, 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; and

(6) Beginning 2014 and every five years thereafter, the auditor shall submit a review of the special, revolving, and trust funds of the department of transportation and the department of defense."

SECTION 4. Section 23G-2, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) In determining the salary of the employees of the bureau, the director shall consult with the department of [human resources development;] budget and finance; provided that, effective July 1, 2007, the salary of the first assistant shall be not more than ninety-two per cent of the salary of the director."

SECTION 5. 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 6. 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)] (1) Department of accounting and general services (Section 26-6)

[(3)] (2) Department of the attorney general (Section 26-7)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

SECTION 7. 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 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;

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

(4) Administer state debts.

(c) 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.

(d) 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.

(e) The department of budget and finance 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.

(f) There shall be within the department of budget and finance 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.

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.

Nothing in this subsection 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 or its regional system boards, which shall remain the same as if this chapter had not been enacted.

(g) There is established in the state treasury the human resources development special fund, to be administered by the department of budget and finance, which shall consist of:

(1) 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;

(2) 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;

(3) Appropriations made by the legislature to the fund; and

(4) Moneys directed to the department from any other source, including gifts, grants, and awards.

(h) 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.

(i) No later than twenty days prior to the convening of each regular session of the legislature beginning with the regular session of 2021, the department of budget and finance shall submit to the legislature a report on the number of exempt positions that were converted to civil service positions during the previous twelve months. The report shall include but not be limited to:

(1) The date the position was established;

(2) The purpose of the position;

(3) Rationale for the conversion; and

(4) The number of exempt positions that remain in each state department after the conversions."

SECTION 8. Section 26-56, Hawaii Revised Statutes, is amended by amending subsections (a) to (c) to read as follows:

"(a) Pursuant to article XVI, section 3.5, of the Constitution of the State of Hawaii, there is established a commission on salaries within the department of [human resources development,] budget and finance, for administrative purposes only.

The commission shall consist of seven members of whom:

(1) Two members shall be appointed by the governor;

(2) Two members shall be appointed by the president of the senate;

(3) Two members shall be appointed by the speaker of the house of representatives; and

(4) One member shall be appointed by the chief justice of the supreme court.

Vacancies in these positions shall be filled in the same manner. The members of the commission shall serve without compensation but shall be reimbursed for expenses, including travel expenses, necessary for the performance of their duties.

(b) The commission shall review and recommend an appropriate salary for the governor, lieutenant governor, members of the legislature, justices and judges of all state courts, administrative director of the State or an equivalent position, and department heads or executive officers and the deputies or assistants to the department heads of the departments of:

(1) Accounting and general services;

(2) Agriculture;

(3) The attorney general;

(4) Budget and finance;

(5) Business, economic development, and tourism;

(6) Commerce and consumer affairs;

(7) Defense;

(8) Hawaiian home lands;

(9) Health;

[(10) Human resources development;

(11)] (10) Human services;

[(12)] (11) Labor and industrial relations;

[(13)] (12) Land and natural resources;

[(14)] (13) Public safety;

[(15)] (14) Taxation; and

[(16)] (15) Transportation.

The commission shall not review the salary of any position in the department of education or the University of Hawaii.

The commission may recommend different salaries for department heads and executive officers and different salary ranges for deputies or assistants to department heads; provided that the commission shall recommend the same salary range for deputies or assistants to department heads within the same department; provided further that the appointing official shall specify the salary for a particular position within the applicable range.

The commission shall not recommend salaries lower than salary amounts recommended by prior commissions replaced by this section.

(c) The commission may seek assistance from the department of [human resources development] budget and finance and any other agency in conducting its review, and all agencies shall fully cooperate with the commission and provide any necessary information to the commission upon request."

SECTION 9. Section 37-74, Hawaii Revised Statutes, is amended by amending subsection (f) to read as follows:

"[[](f)[]] Effective [July 1, 2017,] July 1, 2020, no funds shall be expended to fill a permanent or temporary position for the lowest level of a program if the filling of that position causes the position ceiling for that level of the program to be exceeded; provided that this subsection shall not apply to a:

(1) Position established by the University of Hawaii or the Hawaii health systems corporation;

(2) Position that is entirely federally funded;

(3) Position necessary for compliance, without undue delay, with a court order or decree if the director of [human resources development] finance determines that recruitment through normal civil service procedures would result in delay or noncompliance;

(4) Position approved by the governor for a special, research, or demonstration project of an agency;

(5) Position approved by the governor to perform an emergency management function under the department of defense pursuant to the authority of section 127A‑12(b)(9);

(6) Casual hire position;

(7) Vicing position;

(8) Position established by an agency pursuant to express statutory authorization to establish the position; and

(9) Position established by an agency for a program or project funded by an appropriation in an act other than a general or supplemental appropriations act."

SECTION 10. Section 76-1.5, Hawaii Revised Statutes, is amended to read as follows:

"[[]76-1.5[]] Executive branch workforce demographic profile. (a) The director of [human resources development] finance shall compile a profile on the workforce of the executive branch of the State that shall include:

(1) Demographic data on the entire executive branch workforce covering both civil service employees hired through recruitment procedures based on merit and employees exempt from [such] these procedures;

(2) Breakouts of the data required by paragraph (1) for the systems administered by the department of [human resources development,] budget and finance, the board of education, the University of Hawaii board of regents, and the Hawaii health systems corporation, respectively; and

(3) Information on the number of employees who are currently eligible for retirement and projected retirements for the succeeding five years.

(b) The director of [human resources development] finance shall submit an annual profile report to the legislature no later than twenty days prior to the convening of each regular session."

SECTION 11. Section 76-16, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The civil service to which this chapter applies shall comprise all positions in the State now existing or hereafter established and embrace all personal services performed for the State, except the following:

(1) Commissioned and enlisted personnel of the Hawaii National Guard as such, and positions in the Hawaii National Guard that are required by state or federal laws or regulations or orders of the National Guard to be filled from those commissioned or enlisted personnel;

(2) Positions filled by persons employed by contract where the director of [human resources development] finance has certified that the service is special or unique or is essential to the public interest and that, because of circumstances surrounding its fulfillment, personnel to perform the service cannot be obtained through normal civil service recruitment procedures. Any [such] contract executed pursuant to this paragraph may be for any period not exceeding one year;

(3) Positions that must be filled without delay to comply with a court order or decree if the director determines that recruitment through normal recruitment civil service procedures would result in delay or noncompliance, such as the Felix-Cayetano consent decree;

(4) Positions filled by the legislature or by either house or any committee thereof;

(5) Employees in the office of the governor and office of the lieutenant governor, and household employees at Washington Place;

(6) Positions filled by popular vote;

(7) Department heads, officers, and members of any board, commission, or other state agency whose appointments are made by the governor or are required by law to be confirmed by the senate;

(8) Judges, referees, receivers, masters, jurors, notaries public, land court examiners, court commissioners, and attorneys appointed by a state court for a special temporary service;

(9) One bailiff for the chief justice of the supreme court who shall have the powers and duties of a court officer and bailiff under section 606-14; one secretary or clerk for each justice of the supreme court, each judge of the intermediate appellate court, and each judge of the circuit court; one secretary for the judicial council; one deputy administrative director of the courts; three law clerks for the chief justice of the supreme court, two law clerks for each associate justice of the supreme court and each judge of the intermediate appellate court, one law clerk for each judge of the circuit court, two additional law clerks for the civil administrative judge of the circuit court of the first circuit, two additional law clerks for the criminal administrative judge of the circuit court of the first circuit, one additional law clerk for the senior judge of the family court of the first circuit, two additional law clerks for the civil motions judge of the circuit court of the first circuit, two additional law clerks for the criminal motions judge of the circuit court of the first circuit, and two law clerks for the administrative judge of the district court of the first circuit; and one private secretary for the administrative director of the courts, the deputy administrative director of the courts, each department head, each deputy or first assistant, and each additional deputy, or assistant deputy, or assistant defined in paragraph (16);

(10) First deputy and deputy attorneys general, the administrative services manager of the department of the attorney general, one secretary for the administrative services manager, an administrator and any support staff for the criminal and juvenile justice resources coordination functions, and law clerks;

(11) (A) Teachers, principals, vice-principals, complex area superintendents, deputy and assistant superintendents, other certificated personnel, not more than twenty noncertificated administrative, professional, and technical personnel not engaged in instructional work;

(B) Effective July 1, 2003, teaching assistants, educational assistants, bilingual/bicultural school-home assistants, school psychologists, psychological examiners, speech pathologists, athletic health care trainers, alternative school work study assistants, alternative school educational/supportive services specialists, alternative school project coordinators, and communications aides in the department of education;

(C) The special assistant to the state librarian and one secretary for the special assistant to the state librarian; and

(D) Members of the faculty of the University of Hawaii, including research workers, extension agents, personnel engaged in instructional work, and administrative, professional, and technical personnel of the university;

(12) Employees engaged in special, research, or demonstration projects approved by the governor;

(13) (A) Positions filled by inmates, patients of state institutions, persons with severe physical or mental disabilities participating in the work experience training programs;

(B) Positions filled with students in accordance with guidelines for established state employment programs; and

(C) Positions that provide work experience training or temporary public service employment that are filled by persons entering the workforce or persons transitioning into other careers under programs such as the federal Workforce Investment Act of 1998, as amended, or the Senior Community Service Employment Program of the Employment and Training Administration of the United States Department of Labor, or under other similar state programs;

(14) A custodian or guide at Iolani Palace, the Royal Mausoleum, and Hulihee Palace;

(15) Positions filled by persons employed on a fee, contract, or piecework basis, who may lawfully perform their duties concurrently with their private business or profession or other private employment and whose duties require only a portion of their time, if it is impracticable to ascertain or anticipate the portion of time to be devoted to the service of the State;

(16) Positions of first deputies or first assistants of each department head appointed under or in the manner provided in section 6, article V, of the Hawaii State Constitution; three additional deputies or assistants either in charge of the highways, harbors, and airports divisions or other functions within the department of transportation as may be assigned by the director of transportation, with the approval of the governor; four additional deputies in the department of health, each in charge of one of the following: behavioral health, environmental health, hospitals, and health resources administration, including other functions within the department as may be assigned by the director of health, with the approval of the governor; an administrative assistant to the state librarian; and an administrative assistant to the superintendent of education;

(17) Positions specifically exempted from this part by any other law; provided that:

(A) Any exemption created after July 1, 2014, shall expire three years after its enactment unless affirmatively extended by an act of the legislature; and

(B) All of the positions defined by paragraph (9) shall be included in the position classification plan;

(18) Positions in the state foster grandparent program and positions for temporary employment of senior citizens in occupations in which there is a severe personnel shortage or in special projects;

(19) Household employees at the official residence of the president of the University of Hawaii;

(20) Employees in the department of education engaged in the supervision of students during meal periods in the distribution, collection, and counting of meal tickets, and in the cleaning of classrooms after school hours on a less than half-time basis;

(21) Employees hired under the tenant hire program of the Hawaii public housing authority; provided that not more than twenty-six per cent of the authority's workforce in any housing project maintained or operated by the authority shall be hired under the tenant hire program;

(22) Positions of the federally funded expanded food and nutrition program of the University of Hawaii that require the hiring of nutrition program assistants who live in the areas they serve;

(23) Positions filled by persons with severe disabilities who are certified by the state vocational rehabilitation office that they are able to perform safely the duties of the positions;

(24) The sheriff;

(25) A gender and other fairness coordinator hired by the judiciary;

(26) Positions in the Hawaii National Guard youth and adult education programs;

(27) In the state energy office in the department of business, economic development, and tourism, all energy program managers, energy program specialists, energy program assistants, and energy analysts; and

(28) Administrative appeals hearing officers in the department of human services.

The director shall determine the applicability of this section to specific positions.

Nothing in this section shall be deemed to affect the civil service status of any incumbent as it existed on July 1, 1955."

SECTION 12. Section 76-47, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Members of the merit appeals board shall be persons that can objectively apply the merit principle to public employment. Other qualifications of board members and other matters pertaining to the establishment of the merit appeals board, whether composition of the board, manner of appointment, term of office, limitation on terms, chairperson, removal of members, and name for its merit appeals board, shall be left to the determination of each jurisdiction based on its own preferences and needs. A jurisdiction may continue to use its civil service commission or appeals board, with or without modification, as its merit appeals board to assume all of the functions and responsibilities under section 76-14; provided that the merit appeals board for the State shall be as provided in section [26-5.] 26-8."

SECTION 13. Section 88E-3, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The authority to establish the plan and implement this chapter is vested in the board of trustees. The board shall be placed within the department of [human resources development] budget and finance for administrative purposes."

SECTION 14. Section 88E-4, Hawaii Revised Statutes, is amended to read as follows:

"88E-4 Composition of the board of trustees. The board of trustees shall consist of seven members as follows:

[(1) The director of human resources development of the State or a designated representative, ex officio;

(2)] (1) The director of finance of the State or a designated representative, ex officio; and

[(3) Five] (2) Six other persons, who shall be public employees and represent employee interests."

SECTION 15. 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 and] director of 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 16. Section 88F-2, Hawaii Revised Statutes, is amended to read as follows:

"88F-2 State deferred compensation retirement plan for state and county part-time, temporary, and seasonal or casual employees. The State may establish a deferred compensation retirement plan in accordance with sections 457 and 3121 of the Internal Revenue Code of 1986, as amended, for the benefit of employees to defer a portion of their compensation to a future period of time. Participation in the plan shall be mandatory, with a mandatory payroll deduction by the employee equal to seven and five-tenths per cent of the employee's gross monthly wages, which shall be contributed to the plan. A county may enter into a formal agreement with the State to extend the State's plan and its provisions to part-time, temporary, and seasonal or casual employees of the county; provided that:

(1) The agreement designates one of the county's agencies to locally coordinate the plan; and

(2) The department of [human resources development] budget and finance may levy fees on the county pursuant to rules adopted in accordance with chapter 91."

SECTION 17. Section 90-3, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:

"(e) The agency utilizing the services of volunteers has the responsibility to:

(1) Use volunteers to extend services without displacing paid employees.

(2) Provide each volunteer with a designated supervisor.

(3) Provide staff orientation and training in the use and supervision of volunteers.

(4) Define volunteer jobs that are meaningful to the volunteer and commensurate with his abilities.

(5) Be alert to assignments for handicapped or disabled volunteers.

(6) Make it possible for a volunteer to serve on a trial or probationary basis for a specified period.

(7) Provide orientation and training to improve the volunteer's skills.

(8) Provide volunteers with clear instructions and an adequate work space.

(9) Accept the volunteer as part of the team, including [him] the volunteer in training and staff meetings that pertain to [his] the volunteer's work.

(10) Establish and communicate clearly defined lines of supervision so that the volunteer knows to whom [he] the volunteer is responsible.

(11) Provide appropriate recognition and appreciation to the volunteer.

(12) Provide written guidelines governing the recruitment, screening, utilization, and supervision of volunteers.

(13) Recognize an applicant's prior volunteer service in evaluating fulfillment of training and experience requirements for state employment pursuant to rules adopted by the department of [human resources development,] budget and finance, the judiciary, and the board of regents of the University of Hawaii.

(14) Provide funds for volunteer benefits as specified in section 90-4.

(15) Provide recognition of paid staff for support and supervision of volunteers."

SECTION 18. Section 92F-19, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) No agency may disclose or authorize disclosure of government records to any other agency unless the disclosure is:

(1) Necessary for the performance of the requesting agency's duties and functions and is also:

(A) Compatible with the purpose for which the information was collected or obtained; or

(B) Consistent with the conditions or reasonable expectations of use and disclosure under which the information was provided;

(2) To the state archives for the purposes of historical preservation, administrative maintenance, or destruction;

(3) To another agency, another state, or the federal government, or foreign law enforcement agency or authority, if the disclosure is:

(A) For the purpose of a civil or criminal law enforcement activity authorized by law; and

(B) Pursuant to:

(i) A written agreement or written request, or

(ii) A verbal request, made under exigent circumstances, by an officer or employee of the requesting agency whose identity has been verified, provided that such request is promptly confirmed in writing;

(4) To a criminal law enforcement agency of this State, another state, or the federal government, or a foreign criminal law enforcement agency or authority, if the information is limited to an individual's name and other identifying particulars, including present and past places of employment;

(5) To a foreign government pursuant to an executive agreement, compact, treaty, or statute;

(6) To the legislature, or a county council, or any committee or subcommittee thereof;

(7) Pursuant to an order of a court of competent jurisdiction;

(8) To authorized officials of another agency, another state, or the federal government for the purpose of auditing or monitoring an agency program that receives federal, state, or county funding;

(9) To the offices of the legislative auditor, the legislative reference bureau, or the ombudsman of this State for the performance of their respective functions;

(10) To the department of [human resources development,] budget and finance, county personnel agencies, or line agency personnel offices for the performance of their respective duties and functions, including employee recruitment and examination, classification and compensation reviews, the administration and auditing of personnel transactions, the administration of training and safety, workers' compensation, and employee benefits and assistance programs, and for labor relations purposes; or

(11) Otherwise subject to disclosure under this chapter."

SECTION 19. Section 96-3, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) In determining the salary of each employee, the ombudsman shall consult with the department of [human resources development] budget and finance and shall follow as closely as possible the recommendations of the department. Effective July 1, 2007, the first assistant's salary shall be not more than ninety-two per cent of the salary of the ombudsman."

SECTION 20. Section 103D-110, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

"(a) The department of [human resources development,] budget and finance, 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) Conduct or participate in procurement education and training for persons not employed by the State; and

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

(b) The state procurement office, in cooperation with the department of [human resources development,] budget and finance, shall develop and maintain a procurement practices training and development program for procurement officers of the State and the several counties, to ensure that an agency's procurement practices are in compliance with the procurement code and that proper procurement decisions are made consistent with this chapter. The program shall include a mandatory fundamental training and development session and follow-up training and development sessions."

SECTION 21. Section 103D-204, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) There shall be a state procurement office, placed for administrative purposes only, within the department of accounting and general services, which shall be headed by the administrator of the state procurement office. The administrator shall be the chief procurement officer for those governmental bodies of the executive branch as provided in section [[]103D-203(a)(8)[]]. The administrator shall be a full-time public official. The administrator shall serve a term of four years, and shall be paid a salary not to exceed eighty-seven per cent of the salary of the director of [human resources development,] taxation, without diminution during the administrator's term of office unless by general law applying to all deputies or assistants to department heads."

SECTION 22. Section 109-2, Hawaii Revised Statutes, is amended to read as follows:

"109-2 Stadium authority; powers and duties. The powers and duties of the stadium authority shall be as follows:

(1) To maintain, operate, and manage the stadium and related facilities;

(2) To prescribe and collect rents, fees, and charges for the use or enjoyment of the stadium or any of its facilities;

(3) To make and execute contracts and other instruments necessary or convenient to exercise its powers under this chapter and subject to any limitations in this chapter, to exercise all powers necessary, incidental, or convenient to carry out and effectuate the purposes and provisions of this chapter;

(4) To adopt, amend, and repeal in accordance with chapter 91 rules it may deem necessary to effectuate this chapter and in connection with its projects, operations, and facilities;

(5) To appoint a manager and a deputy manager who shall have qualifications as the authority deems necessary and who shall hold their respective offices at the pleasure of the authority. The manager and deputy manager shall be exempt from the requirements of chapters 76 and 89. Effective July 1, [2005,] 2020, the manager shall be paid a salary not to exceed eighty-seven per cent of the salary of the director of [human resources development.] taxation. Effective July 1, 2005, the deputy manager shall be paid a salary not to exceed eighty-five per cent of the manager's salary. The manager shall have full power to administer the affairs of the stadium and related facilities, subject to the direction and approval of the authority. The manager shall, subject to the approval of the authority, have power to appoint, suspend, and discharge a secretary who shall be exempt from the requirements of chapters 76 and 89, and other employees, subordinates, and assistants as may be necessary for the proper conduct of the business of the authority. Except for persons hired on contract or otherwise as provided in section 109-3 and except for the manager, deputy manager, and secretary, all appointments, suspensions, or discharges shall be made in conformity with the applicable provisions of chapter 76; and

(6) To plan, promote, and market the stadium and related facilities."

SECTION 23. Section 269-2, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Effective July 1, [2005,] 2020, the chairperson of the commission shall be paid a salary set at eighty-seven per cent of the salary of the director of [human resources development,] taxation, and each of the other commissioners shall be paid a salary equal to ninety-five per cent of the chairperson's salary. The commissioners shall be exempt from chapters 76 and 89 but shall be members of the state [[]employees'[]] retirement system and shall be eligible to receive the benefits of any state or federal employee benefit program generally applicable to officers and employees of the State, including those under chapter 87A."

SECTION 24. Section 302D-27, Hawaii Revised Statutes, is amended to read as follows:

"[[]302D-27[]] Administration of workers' compensation. The department of [human resources development] budget and finance shall administer workers' compensation claims for employees of charter schools, who shall be covered by the same self-insured workers' compensation system as other public employees. The department of [human resources development] budget and finance shall process, investigate, and make payments on claims; provided that:

(1) Charter schools shall compile the preliminary claim form and forward it to the department of [human resources development;] budget and finance; and

(2) The department of [human resources development] budget and finance shall receive no more than 0.07 per cent of the EDN 600 appropriation to process these workers' compensation claims."

SECTION 25. Section 302L-1.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The head of the executive office on early learning shall be known as the director of the executive office on early learning, hereinafter referred to as director. The director shall:

(1) Be appointed and evaluated annually by the board;

(2) Have professional training in the field of social work, education, or other related fields, including major coursework in early childhood education and child development, and preferably holding an academic degree in the field of early childhood education and child development;

(3) Have direct experience in programs or services related to early learning;

(4) Have recent experience in a supervisory, consultative, or administrative position;

(5) Be paid a salary set by the board that shall not exceed ninety per cent of the salary of the director of [human resources development;] taxation; and

(6) Be included in any benefit program generally applicable to the officers and employees of the State."

SECTION 26. Section 342B-63, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The person appointed as the small business ombudsman shall be experienced in dealing with both private enterprise and government entities; arbitration and negotiation; interpretation of laws and rules; investigation; recordkeeping; report writing; public speaking; and management. All employees of the office shall be hired by the small business ombudsman and shall serve at the small business ombudsman's pleasure. In determining the salary of each employee, the small business ombudsman shall consult with the [[department of human resources development]] department of budget and finance and shall follow as closely as possible the recommendations of the [[department of human resources development].] department of budget and finance. The small business ombudsman and the small business ombudsman's full-time staff shall be entitled to participate in all state employee benefit plans."

SECTION 27. Section 349-2, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The head of this office shall be known as the director of the executive office on aging, hereinafter referred to as director. The director shall have professional training in the field of social work, education, public health, and other related fields; extensive direct experience in programs or services related to elders; and recent experience in a supervisory, consultative, or administrative position. The director shall be nominated and appointed by the governor without regard to chapters 76 and 89. Effective July 1, [2005,] 2020, the director shall be paid a salary set by the appointing authority that shall not exceed sixty-nine per cent of the salary of the director of [human resources development.] taxation. The director shall be included in any benefit program generally applicable to the officers and employees of the State."

SECTION 28. 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,] finance, 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 29. Section 487N-5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) There is established an information privacy and security council within the department of accounting and general services for administrative purposes only. Members of the council shall be appointed no later than September 1, 2008, by the governor without regard to section 26-34 and shall be composed of the following representatives:

(1) Executive agencies that maintain extensive personal information in the conduct of their duties, including the department of commerce and consumer affairs, the department of education, the department of health, the department of [human resources development,] budget and finance, the department of human services, and the University of Hawaii, to be selected by the governor;

(2) The legislature, to be selected by the president of the senate and the speaker of the house of representatives;

(3) The judiciary, to be selected by the chief justice of the Hawaii supreme court; and

(4) The four counties, to be selected by the mayor of each county; provided that the mayor of each county shall determine the extent to which the county may or may not participate.

The chief information officer or the chief information officer's designee shall serve as chair of the council."

SECTION 30. 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 or its regional system boards, 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.

(g) The department of human resources development shall submit, no later than twenty days prior to the convening of each regular session [of the legislature] beginning with the regular session of 2007, a report of the number of exempt positions that were converted to civil service positions during the previous twelve months. The report shall include but not be limited to:

(1) When the position was established;

(2) The purpose of the position;

(3) Rationale for the conversion; and

(4) How many exempt positions remain in each state department after the conversions."]

SECTION 31. All rights, powers, functions, and duties of the department of human resources development are transferred to the department of budget and finance.

All employees who occupy civil service positions and whose functions are transferred to the department of budget and finance by this Act shall retain their civil service status, whether permanent or temporary. Employees shall be transferred without loss of salary, seniority (except as prescribed by applicable collective bargaining agreements), retention points, prior service credit, any vacation and sick leave credits previously earned, and other rights, benefits, and privileges, in accordance with state personnel laws and this Act; provided that the employees possess the minimum qualifications and public employment requirements for the class or position to which transferred or appointed, as applicable; provided further that subsequent changes in status may be made pursuant to applicable civil service and compensation laws.

Any employee who, prior to this Act, is exempt from civil service and is transferred as a consequence of this Act may retain the employee's exempt status, but shall not be appointed to a civil service position as a consequence of this Act. An exempt employee who is transferred by this Act shall not suffer any loss of prior service credit, vacation or sick leave credits previously earned, or other employee benefits or privileges as a consequence of this Act; provided that the employees possess legal and public employment requirements for the position to which transferred or appointed, as applicable; provided further that subsequent changes in status may be made pursuant to applicable employment and compensation laws. The director of finance may prescribe the duties and qualifications of these employees and fix their salaries without regard to chapter 76, Hawaii Revised Statutes.

SECTION 32. 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 human resources development relating to the functions transferred to the department of budget and finance shall be transferred with the functions to which they relate.

SECTION 33. All rules, policies, procedures, guidelines, and other material adopted or developed by the department of human resources development to implement provisions of the Hawaii Revised Statutes which are reenacted or made applicable to the department of budget and finance by this Act, 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 human resources development or director of human resources development in those rules, policies, procedures, guidelines, and other material is amended to refer to the department of budget and finance or director of finance as appropriate.

SECTION 34. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 35. This Act shall take effect on January 1, 2050.



 

Report Title:

DHRD; B&F; Repeal and Transfer of DHRD to B&F

 

Description:

Abolishes the Department of Human Resources Development and transfers its functions to the Department of Budget and Finance. Replaces the Director of Human Resources Development with the same-tiered Director of Taxation as the new basis for salaries of certain other state officials. (HB625 HD1)

 

 

 

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