HB2948

SECTION 1. As legal matters in education increase in frequency, complexity, and volume, a growing number of public school systems throughout America have retained in-house legal counsel to address, monitor, and manage the vast amounts of legal work generated by the operation of public schools in their respective districts. In fact, of the ten largest school districts in the United States, most have a law department or an office of general counsel that handles the legal affairs of their school district. The Hawaii department of education, which is among the ten largest school districts in the United States, does not have a separate legal department or in-house legal counsel. Furthermore, section 28-8.3, Hawaii Revised Statutes, provides that no state department other than the department of the attorney general may employ or retain attorneys for the purpose of representing the State or any of its departments in their legal affairs.

Act 51, Session Laws of Hawaii 2004, initiated the process of repositioning the State's educational system to meet the challenges of the twenty-first century and placed additional responsibilities on the department of education. The department's expanded responsibilities require the legislature to consider whether the establishment of an office of general counsel is in the best interests of the State's educational system.

The purpose of this Act is to provide the department of education with the authority and funding to appoint and retain attorneys separate from the department of the attorney general for the purpose of monitoring, managing, and addressing the legal affairs of the department of education.

SECTION 2. Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§302A- Legal counsel. (a) The department, through the superintendent, may appoint or retain one or more attorneys who are independent of the department of the attorney general, to provide legal services to the board and the department. The superintendent may fix the compensation of the attorneys appointed pursuant to this section. Attorneys appointed or retained under this section shall be exempt from chapters 76 and 89.

(b) This section shall not preclude the board or the department from requesting and securing legal services from the attorney general or the department of the attorney general, for the board or its members, or the department, its officers or employees."

SECTION 3. Section 28-8.3, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (a) to read:

"(a) No department of the State other than the attorney general may employ or retain any attorney, by contract or otherwise, for the purpose of representing the State or the department in any litigation, rendering legal counsel to the department, or drafting legal documents for the department; provided that the foregoing provision shall not apply to the employment or retention of attorneys:

(1) By the public utilities commission, the labor and industrial relations appeals board, and the Hawaii labor relations board;

(2) By any court or judicial or legislative office of the State;

(3) By the legislative reference bureau;

(4) By any compilation commission that may be constituted from time to time;

(5) By the real estate commission for any action involving the real estate recovery fund;

(6) By the contractors license board for any action involving the contractors recovery fund;

(7) By the trustees for any action involving the travel agency recovery fund;

(8) By the office of Hawaiian affairs;

(9) By the department of commerce and consumer affairs for the enforcement of violations of chapters 480 and 485;

(10) By the department of education;

[~~(10)~~] (11) As grand jury counsel;

[~~(11)~~] (12) By the Hawaiian home lands trust individual claims review panel;

[~~(12)~~] (13) By the Hawaii health systems corporation, or its regional system boards, or any of their facilities;

[~~(13)~~] (14) By the auditor;

[~~(14)~~] (15) By the office of ombudsman;

[~~(15)~~] (16) By the insurance division;

[~~(16)~~] (17) By the University of Hawaii;

[~~(17)~~] (18) By the Kahoolawe island reserve commission;

[~~(18)~~] (19) By the division of consumer advocacy;

[~~(19)~~] (20) By the office of elections;

[~~(20)~~] (21) By the campaign spending commission;

[~~(21)~~] (22) By the Hawaii tourism authority, as provided in section 201B-2.5; or

[~~(22)~~] (23) By a department, in the event the attorney general, for reasons deemed by the attorney general good and sufficient, declines, to employ or retain an attorney for a department; provided that the governor thereupon waives the provision of this section."

2. By amending subsection (c) to read:

"(c) Every attorney employed by any department on a full-time basis, except an attorney employed by the public utilities commission, the labor and industrial relations appeals board, the Hawaii labor relations board, the office of Hawaiian affairs, the Hawaii health systems corporation or its regional system boards, the department of commerce and consumer affairs in prosecution of consumer complaints, insurance division, the division of consumer advocacy, the department of education, the University of Hawaii, the Hawaii tourism authority as provided in section 201B-2.5, the Hawaiian home lands trust individual claims review panel, or as grand jury counsel, shall be a deputy attorney general."

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2008-2009 for the purposes of this Act, which includes the hiring of six full-time attorneys who shall be exempt from chapter 76 and 89, Hawaii Revised Statutes.

The sum appropriated shall be expended by the department of education for the purposes of this Act.

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect upon approval; provided that:

(1) Section 4 shall take effect on July 1, 2008; and

(2) The amendment made to section 28-8.3(c), Hawaii Revised Statutes, by section 3 of this Act shall not be repealed when that section is reenacted by section 1 of Act 306, Session Laws of Hawaii 2006.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	2948
TWENTY-FOURTH LEGISLATURE, 2008
STATE OF HAWAII