HB1260 SD1 PROPOSED LRB 09-3300

SECTION 1. The purpose of this Act is to reorganize certain state executive branch departments to reflect the provisions of the General Appropriations Act of 2009.

PART I

SECTION 2. The purpose of this part is to abolish the research and economic analysis division of the department of business, economic development, and tourism.

SECTION 3. Section 201-9, Hawaii Revised Statutes, is repealed.

["~~§201-9 Cooperation with other agencies; acceptance and spending of grants; dissemination of findings.~~ The department of business, economic development, and tourism shall seek the widest possible cooperation, under law, with public and private agencies and the federal government in achieving the purpose of this part. It may accept funds from individuals and other agencies, public and private, and agree to such lawful and reasonable conditions and terms as the donor of funds may require, all toward the end of furthering the purposes of this part. The funds may be expended by the department on vouchers approved by its director, or may be transferred to other state agencies for expenditure by them in effectuating the purposes of this part.

To the end of stimulating cooperation toward the economic development of Hawaii and of disseminating useful information which it obtains, the department shall from time to time publish the results of its research, its findings, and recommendations."]

SECTION 4. Section 201-13.8, Hawaii Revised Statutes, is repealed.

["~~§201-13.8 Data or information collection.~~ (a) The director, in consultation with all affected governmental agencies, shall assess the need for statistics and other information as to the number, characteristics, needs, and movement of people into, out of, or within Hawaii, including residents, migrants, and visitors, and such other information as the director may deem necessary, for the purposes of sound economic research and analysis. The director shall be responsible for collecting, analyzing, and disseminating such information to governmental agencies on a timely basis, and is authorized to use any appropriate method to collect the information, including but not limited to conducting an entry and exit census or survey of all individuals entering, leaving, or living within the State, and obtaining data or information acquired by other agencies, both public and private. All governmental agencies shall cooperate with and assist the director to implement this section.

(b) To the extent that it is identifiable to an individual, information obtained by the department or its agents through surveys, questionnaires, or other information gathering efforts shall be held confidential and not disclosed or opened to public inspection, except that such information may be shared with other government agencies as provided in section 92F-19.

(c) Public disclosure of information gathered by the department could place businesses at a competitive disadvantage. Consequently, where disclosure would result in the impairment of the department's ability to obtain such information and the frustration of a legitimate government function, the department may withhold from public disclosure competitively sensitive information including:

~~(1)~~ ~~Completed survey and questionnaire forms;~~

~~(2)~~ ~~Coding sheets; and~~

~~(3)~~ ~~Database records of such information.~~

~~(d) The director may adopt necessary rules pursuant to chapter 91, to administer this section.~~"]

SECTION 5. Section 201-19, Hawaii Revised Statutes, is repealed.

["~~[§201-19] Research and statistics for growth industries.~~ ~~(a) The department shall maintain a program for the purpose of:~~

~~(1)~~ ~~Measuring and analyzing new economic development trends within growth industries such as:~~

~~(A)~~ ~~Ocean sciences and technology;~~

~~(B)~~ ~~Biotechnology and life sciences;~~

~~(C)~~ ~~Astronomy;~~

~~(D)~~ ~~Technology and information services;~~

~~(E)~~ ~~Film and creative media;~~

~~(F)~~ ~~Diversified agriculture;~~

~~(G)~~ ~~Aquaculture; and~~

~~(H)~~ ~~Specialty tourism;~~

~~(2)~~ Providing economic information to policy makers, the public, and the various growth industries under paragraph (1) for use in setting policies, objectives, and goals. This includes collecting, analyzing, and publishing available data on an annual basis relating but not limited to:

~~(A)~~ ~~Economic diversification, income and income distribution, and issues and measures of the State's natural resources in relation to state sustainable economy goals;~~

~~(B)~~ ~~The technology sector of the State, including but not limited to defining the sector, estimating employment, and compiling available information on patents registered in Hawaii;~~

~~(C)~~ ~~Technology change in the economy, including but not limited to technical jobs outside the technology sector, and the changing applications of technology in the private economy and government;~~

~~(D)~~ ~~The technology-based workforce, including but not limited to management, technical, and professional jobs, and technology education and training;~~

~~(E)~~ Innovation and enterprise, including but not limited to available information on startup companies, venture capital investment, private and government research and development activities, small business innovation research grants, and technology licensing;

~~(F)~~ ~~The dollar value of research and development conducted at, or in association with, the University of Hawaii;~~

~~(G)~~ ~~Global connections, including but not limited to diversification of export and visitor markets, foreign business travel, and the manufacturing of export products; and~~

~~(H)~~ ~~Venture capital investments in Hawaii, including but not limited to the size of local venture investments and their annual growth.~~

(b) The department shall submit to the legislature no later than twenty days prior to the convening of each regular legislative session, a written performance report on the impact of activities of the department and attached agencies that demonstrate their efforts to support, promote, and facilitate the expansion and long-term viability of emerging growth industries including those identified in subsection (a)(1)."]

PART II

SECTION 6. The purpose of this part is to abolish the Aloha Tower development corporation and to transfer jurisdiction over and responsibility for the harbors modernization functions of the Aloha Tower development corporation to the harbors division of the department of transportation.

SECTION 7. Chapter 206J, Hawaii Revised Statutes, is repealed.

SECTION 8. Chapter 266, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§266‑ Partnership between department of transportation, harbors division, and the United States Department of Transportation, Maritime Administration; commercial harbors modernization plan. (a) On July 1, 2009, the department of transportation, harbors division, shall assume jurisdiction over the harbors modernization project from the Aloha Tower development corporation, to undertake projects for the commercial harbors modernization plan in subsection (b). All projects, prior to implementation, shall be approved by the director of transportation and the governor.

For purposes of this subsection, the department of transportation, harbors division, shall seek the input and guidance of the United States Department of Transportation, Maritime Administration, in the management of the harbors modernization project; provided that the department of transportation, harbors division, may enter into an agreement with Maritime Administration for the purpose of infrastructure improvements of harbors statewide.

(b) The harbors modernization group shall have jurisdiction over harbors projects that shall collectively be known as the commercial harbors modernization plan. These harbor projects shall be as follows:

(1) Honolulu harbor. Development of infrastructure, expansion of facilities, and tenant relocations, including the development of the new Kapalama container terminal;

(2) Kahului harbor. Development of infrastructure, expansion of facilities, tenant relocations, and acquisition of lands, including the West harbor barge or ferry slip or both, West harbor dredging and breakwater, West harbor cruise terminal, Pier 1 fuel line replacement and upgrade, East harbor breakwater, and Pier 2B strengthening;

(3) Hana Harbor. Development of infrastructure, demolition, as necessary, and expansion of facilities and acquisition of lands;

(4) Hilo harbor. Development of infrastructure, expansion of facilities, tenant relocations, and acquisition of lands, including the Pier 4 interisland cargo terminal;

(5) Kawaihae harbor. Development of infrastructure, expansion of facilities, tenant relocations, acquisition of lands, including the Pier 2 terminal and barge improvements, Pier 2 extension and terminal, and Pier 4 and liquid bulk terminals;

(6) Kalaeloa harbor. Development of infrastructure, expansion of facilities, tenant relocations, and acquisition of lands, including the West harbor infrastructure, Pier 4 dedicated fuel pier, and extension of the fuel line; and

(7) Nawiliwili harbor. Development of infrastructure, expansion of facilities, tenant relocations, and acquisition of lands, including the new multi-use pier.

(c) Land disposition matters in projects identified in the commercial harbors modernization plan, including land acquisition, leasing, and conveyance, and acquisition of easements or right-of-ways, shall continue to be under the jurisdiction of the board of land and natural resources pursuant to chapter 171.

(d) Except as otherwise provided in this subsection, the harbors modernization group shall be comprised of thirteen members, as follows:

(1) The following ex-officio voting members or their designees:

(A) The director of transportation;

(B) The director of business, economic development, and tourism;

(D) The mayor of the city and county of Honolulu and the mayors of the counties of Hawaii, Maui, and Kauai; and

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

(2) The following voting members, appointed by the governor pursuant to section 26-34:

(A) Two public members from the maritime industry who shall be directly involved with a harbor or offshore mooring facility that is primarily for the movement of commercial cargo, passenger, and fishing vessels entering, leaving, or traveling within the state harbor system, or directly involved with an activity that requires and is directly related to the loading, offloading, storage, or distribution of goods and services by means of seaborne transportation; and

(B) Three members from the public at large, for staggered terms pursuant to section 26-34; provided that no member from the public at large shall be an officer or employee of the State or its political subdivisions.

Except as provided in paragraph (2), regarding staggered terms, the members of the harbors modernization group shall serve for four year terms and shall continue in office until their respective successors have been appointed. The director of transportation shall serve as the chairperson of the harbors modernization group.

Members shall serve without compensation, but each member shall be reimbursed for expenses, including travel expenses, incurred in the performance of their duties.

(e) The department of transportation may apply any revenues derived from commercial development projects in the state harbors to defray the cost of harbor infrastructure improvements incurred within the State.

(f) All procurements relating to the harbors modernization project shall be exempt from chapter 103D until June 30, 2016."

SECTION 9. Members as of July 1, 2009, of the harbor modernization group, established pursuant to section 206J-5.5, Hawaii Revised Statutes, shall continue their service under the jurisdiction of the department of transportation pursuant to this Act.

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 Aloha Tower development corporation with regard to harbor projects and development relating to the functions transferred to the department of transportation shall be transferred with the functions to which they relate.

PART III

SECTION 11. The purpose of this part is to abolish the Hawaii occupational safety and health law effective on October 1, 2010.

SECTION 12. Chapter 396, Hawaii Revised Statutes, is repealed.

PART IV

SECTION 13. The purpose of this part is to transfer the position of tourism liaison from the department of business, economic development, and tourism to the office of the governor.

SECTION 14. Chapter 27, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"PART . TOURISM

§27‑ Special advisor for tourism. (a) There is established within the office of the governor a special advisor for tourism who shall be appointed by the governor without regard to section 26-34. The special advisor shall not be subject to chapters 76 and 89.

(b) The special advisor for tourism shall serve as the liaison between the governor and the Hawaii tourism authority, department of business, economic development, and tourism, and other public and private parties on matters relating to tourism."

PART V

SECTION 15. The purpose of this part is to transfer the small business regulatory review board, with its statutory duties and powers, from the department of business, economic development, and tourism to the department of commerce and consumer affairs.

SECTION 16. Section 201M-5, Hawaii Revised Statutes, is amended to read as follows:

"§201M-5 Small business regulatory review board; powers. (a) There shall be established within the department of [~~business, economic development, and tourism,~~] commerce and consumer affairs for administrative purposes[,] a small business regulatory review board to review any proposed new or amended rule or to consider any request from small business owners for review of any rule adopted by a state agency and to make recommendations to the agency or the legislature regarding the need for a rule change or legislation. For requests regarding county ordinances, the board may make recommendations to the county council or the mayor for appropriate action.

(b) The board shall consist of eleven members, who shall be appointed by the governor pursuant to section 26-34. Nominations to fill vacancies shall be made from names submitted by the review board. The appointments shall reflect representation of a variety of businesses in the State; provided that no more than two members shall be representatives from the same type of business, and that there shall be at least two representatives from each county.

(c) All members of the board shall be either a current or former owner or officer of a business and shall not be an officer or employee of the federal, state, or county government. A majority of the board shall elect the chairperson. The chairperson shall serve a term of not more than one year, unless removed earlier by a two-thirds vote of all members to which the board is entitled.

(d) A majority of all the members to which the board is entitled shall constitute a quorum to do business, and the concurrence of a majority of all the members to which the board is entitled shall be necessary to make any action of the board valid.

(e) In addition to any other powers provided by this chapter, the board may:

(1) Adopt any rules necessary to implement this chapter;

(2) Organize and hold conferences on problems affecting small business; and

(3) Do any and all things necessary to effectuate the purposes of this chapter.

(f) The board shall submit an annual report to the legislature twenty days prior to each regular session detailing any requests from small business owners for review of any rule adopted by a state agency, and any recommendations made by the board to an agency or the legislature regarding the need for a rule change or legislation. The report shall also contain a summary of the comments made by the board to agencies regarding its review of proposed new or amended rules.

(g) The expenses of the board shall be funded entirely from the compliance resolution fund; provided that this provision shall not require the board to charge any fee for its service. The director of commerce and consumer affairs shall include, as part of any other fee charged to a person or organization, an amount with a reasonable nexus to the small business regulatory review activities of the board.

For the purpose of this subsection, "expenses" includes operating expenses, cash capital expenses, and debt service attributable to the board."

PART VI

SECTION 17. The purpose of this part is to transfer the land use commission, with its statutory duties and powers, from the department of business, economic development, and tourism to the department of land and natural resources.

SECTION 18. Section 205-1, Hawaii Revised Statutes, is amended to read as follows:

"§205-1 Establishment of the commission. There shall be a state land use commission, hereinafter called the commission. The commission shall consist of nine members who shall hold no other public office and shall be appointed in the manner and serve for the term set forth in section 26‑34. One member shall be appointed from each of the counties and the remainder shall be appointed at large; provided that one member shall have substantial experience or expertise in traditional Hawaiian land usage and knowledge of cultural land practices. The commission shall elect its chairperson from one of its members. The members shall receive no compensation for their services on the commission, but shall be reimbursed for actual expenses incurred in the performance of their duties. Six affirmative votes shall be necessary for any boundary amendment.

The commission shall be a part of the department of [~~business, economic development, and tourism~~] land and natural resources for administration purposes[~~, as provided for in section 26‑35~~].

The commission may engage employees necessary to perform its duties, including administrative personnel and an executive officer. The executive officer shall be appointed by the commission and the executive officer's position shall be exempt from civil service. Departments of the state government shall make available to the commission such data, facilities, and personnel as are necessary for it to perform its duties. The commission may receive and utilize gifts and any funds from the federal or other governmental agencies. It shall adopt rules guiding its conduct, maintain a record of its activities and accomplishments, and make recommendations to the governor and to the legislature through the governor."

PART VII

SECTION 19. The purpose of this part is to transfer the high technology development corporation and high technology innovation corporation, with their statutory duties and powers, from the department of business, economic development, and tourism to the University of Hawaii.

SECTION 20. Section 206M-2, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

"(a) There is established the high technology development corporation, which shall be a public body corporate and politic and an instrumentality and agency of the State. The development corporation shall be placed within the [~~department of business, economic development, and tourism~~] University of Hawaii for administrative purposes, pursuant to section 26-35. The purpose of the development corporation shall be to facilitate the growth and development of the commercial high technology industry in Hawaii. Its duties shall include, but not be limited to:

(1) Developing and encouraging industrial parks as high technology innovation centers and developing or assisting with the development of projects within or outside of industrial parks, including participating with the private sector in such development;

(2) Providing financial and other support and services to Hawaii-based high technology companies;

(3) Collecting and analyzing information on the state of commercial high technology activity in Hawaii;

(4) Promoting and marketing Hawaii as a site for commercial high technology activity; and

(5) Providing advice on policy and planning for technology-based economic development.

(b) The governing body of the development corporation shall consist of a board of directors having eleven voting members. Seven of the members shall be appointed by the governor for staggered terms pursuant to section 26-34. Six of the appointed members shall be from the general public and selected on the basis of their knowledge, interest, and proven expertise in, but not limited to, one or more of the following fields: finance, commerce and trade, corporate management, marketing, economics, engineering, and telecommunications, and other high technology fields. The other appointed member shall be selected from the faculty of the University of Hawaii. All appointed members of the board shall continue in office until their respective successors have been appointed. The [~~director of business, economic development, and tourism,~~] president of the University of Hawaii, the director of finance, an appointed member from the board of the Hawaii strategic development corporation, and an appointed member from the board of the natural energy laboratory of Hawaii authority, or their designated representatives, shall serve as ex officio voting members of the board. The [~~director of business, economic development, and tourism~~] president of the University of Hawaii shall serve as the chairperson until such time as a chairperson is elected by the board from the membership. The board shall elect such other officers as it deems necessary."

SECTION 21. Chapter 304A, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§304A‑ University of Hawaii high technology special fund. (a) There is established the University of Hawaii high technology special fund, into which shall be deposited, except as otherwise provided by sections 206M-15, 206M-15.6, and 206M-17, all moneys, fees, and equity from tenants, qualified persons, or other users of the development corporation's industrial parks, projects, other leased facilities, and other services and publications. The moneys in the fund shall be expended for the administration and operation of the high technology development corporation, the operation, maintenance, and management of its industrial parks, projects, facilities, services, and publications, and the expenses in administering the special purpose revenue bonds of the high technology development corporation or in carrying out its project agreements.

(b) Subsection (a) shall not require the expenses of the development corporation to be exclusively funded from the moneys, fees, and equity deposited into the special fund. Other moneys of the University of Hawaii may be appropriated and expended for the development corporation. The president of the University of Hawaii may include, as part of any other fee charged to a person or organization, an amount with a reasonable nexus to high technology development activities of the corporation."

SECTION 22. Section 206M-15.5, Hawaii Revised Statutes, is repealed.

SECTION 23. Section 206M-51, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) There is established, as a body corporate, the high technology innovation corporation. The high technology innovation corporation shall be a public, not-for-profit organization under section 501(c)(3) of the Internal Revenue Code of 1986, as amended. The high technology innovation corporation shall be [~~attached to the department of business, economic development, and tourism~~] placed within the University of Hawaii for administrative purposes."

PART VIII

SECTION 24. The purpose of this part is to transfer the office of planning, with its statutory duties and powers, from the department of business, economic development, and tourism to the department of land and natural resources.

SECTION 25. Section 225M-2, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) There is established within the department of [~~business, economic development, and tourism an~~] land and natural resources, the office of planning. The head of the office shall be known as the director of the office of planning, referred to in this chapter as director. The director shall have: training in the field of urban or regional planning, public administration, or other related fields; experience in programs or services related to governmental planning; and experience in a supervisory, consultative, or administrative capacity. The director shall be nominated by the governor and, by and with the advice and consent of the senate, appointed by the governor without regard to chapter 76, and shall be compensated at a salary level set by the governor. The director shall be included in any benefit program generally applicable to the officers and employees of the State. The director shall retain such staff as may be necessary for the purposes of this chapter, in conformity with chapter 76. The director shall report to the director of business, economic development, and tourism and shall not be required to report directly to any other principal executive department."

SECTION 26. Section 205-3.1, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"(d) The county land use decision-making authority shall serve a copy of the application for a district boundary amendment to the land use commission and the [~~department of business, economic development, and tourism~~] office of planning and shall notify the commission and [~~the department~~] office of the time and place of the hearing and the proposed amendments scheduled to be heard at the hearing. A change in the state land use district boundaries pursuant to this subsection shall become effective on the day designated by the county land use decision-making authority in its decision. Within sixty days of the effective date of any decision to amend state land use district boundaries by the county land use decision-making authority, the decision and the description and map of the affected property shall be transmitted to the land use commission and the [~~department of business, economic development, and tourism~~] office of planning by the county planning director."

SECTION 27. Section 205-5.2, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"(d) After the board has completed a county-by-county assessment of all areas with geothermal potential or after any subsequent update or review, the board shall compare all areas showing geothermal potential within each county, and shall propose areas for potential designation as geothermal resource subzones based upon a preliminary finding that the areas are those sites which best demonstrate an acceptable balance between the factors set forth in subsection (b). Once a proposal is made, the board shall conduct public hearings pursuant to this subsection, notwithstanding any contrary provision related to public hearing procedures. Contested case procedures are not applicable to these hearings.

(1) Hearings shall be held at locations which are in close proximity to those areas proposed for designation. A public notice of hearing, including a description of the proposed areas, an invitation for public comment, and a statement of the date, time, and place where persons may be heard shall be given and mailed no less than twenty days before the hearing. The notice shall be given on three separate days statewide and in the county in which the hearing is to be held. Copies of the notice shall be mailed to the [~~department of business, economic development, and tourism,~~] office of planning, to the planning commission and planning department of the county in which the proposed areas are located, and to all owners of record of real estate within, and within one thousand feet of, the area being proposed for designation as a geothermal resource subzone. The notification shall be mailed to the owners and addresses as shown on the current real property tax rolls at the county real property tax office. Upon that action, the requirement for notification of owners of land is completed. For the purposes of this subsection, notice to one co-owner shall be sufficient notice to all co-owners;

(2) The hearing shall be held before the board, and the authority to conduct hearings shall not be delegated to any agent or representative of the board. All persons and agencies shall be afforded the opportunity to submit data, views, and arguments either orally or in writing. The [~~department of business, economic development, and tourism~~] office of planning and the county planning department shall be permitted to appear at every hearing and make recommendations concerning each proposal by the board; and

(3) At the close of the hearing, the board may designate areas as geothermal resource subzones or announce the date on which it will render its decision. The board may designate areas as geothermal resource subzones only upon finding that the areas are those sites which best demonstrate an acceptable balance between the factors set forth in subsection (b). Upon request, the board shall issue a concise statement of its findings and the principal reasons for its decision to designate a particular area."

PART IX

SECTION 28. The purpose of this part is to the transfer the natural energy laboratory of Hawaii authority, with its statutory duties and powers, from the department of business, economic development, and tourism to the University of Hawaii.

SECTION 29. Section 227D-2, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

"(a) There is established the natural energy laboratory of Hawaii authority, which shall be a body corporate and politic and an instrumentality and agency of the State. The authority shall be placed within the [~~department of business, economic development, and tourism~~] University of Hawaii for administrative purposes[~~, pursuant to section 26-35~~]. The purpose of the natural energy laboratory of Hawaii authority shall be to facilitate research, development, and commercialization of natural energy resources and ocean-related research, technology, and industry in Hawaii and to engage in retail, commercial, or tourism activities that will financially support that research, development, and commercialization at a research and technology park in Hawaii. Its duties shall include:

(1) Establishing, managing, and operating facilities that provide sites for:

(A) Research and development;

(B) Commercial projects and businesses utilizing natural resources, such as ocean water or geothermal energy;

(C) Compatible businesses engaged in scientific and technological investigations, or retail, commercial, and tourism activities; and

(D) Businesses or educational facilities that support the primary projects and activities;

(2) Providing support, utilities, and other services to facility tenants and government agencies;

(3) Maintaining the physical structure of the facilities;

(4) Promoting and marketing these facilities;

(5) Promoting and marketing the reasonable utilization of available natural resources;

(6) Supporting ocean research and technology development projects that support national and state interests, use facilities and infrastructure in Hawaii, and foster potential commercial development; and

(7) Engaging in retail, commercial, and tourism activities that are not related to facilitating research, development, and commercialization of natural energy resources in Hawaii; provided that all income derived from these activities shall be deposited in the natural energy laboratory of Hawaii authority special fund.

(b) The governing body of the authority shall consist of a board of directors having eleven voting members. Three members from the general public shall be appointed by the governor for staggered terms pursuant to section 26-34, except that one of these members shall be a resident of the county of Hawaii. The members shall be selected on the basis of their knowledge, interest, and proven expertise in, but not limited to, one or more of the following fields: finance, commerce and trade, corporate management, marketing, economics, engineering, energy management, real estate development, property management, aquaculture, and ocean science. The chairperson and secretary of the research advisory committee shall serve on the board. The [~~director of business, economic development, and tourism,~~] president of the University of Hawaii, the chairperson of the board of land and natural resources, the [~~president of the University of Hawaii,~~] director of business, economic development, and tourism, the mayor of the county of Hawaii, an appointed member from the board of the high technology development corporation, and an appointed member from the board of the Hawaii strategic development corporation, or their designated representatives, shall serve as ex officio, voting members of the board. The [~~director of business, economic development, and tourism~~] president of the University of Hawaii shall serve as the chairperson until such time as a chairperson is elected by the board from the membership. The board shall elect other officers as it deems necessary."

PART X

SECTION 30. The purpose of this part is to transfer the measurement standards program, with its statutory authority, from the department of agriculture to the department of commerce and consumer affairs.

SECTION 31. Chapter 486, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§486- Funding of measurement standards branch. The expenses of the measurement standards branch shall be funded entirely from the compliance resolution fund. For this purpose, "expenses" includes operating expenses, cash capital expenses, and debt service attributable to the branch.

The department shall establish sufficient fees to comply with this section."

SECTION 32. Section 486-1, Hawaii Revised Statutes, is amended as follows:

1. By adding a new definition of "director" to read:

""Director" means the director of commerce and consumer affairs."

2. By amending the definition of "department" to read:

""Department" means department of [~~agriculture.~~] commerce and consumer affairs."

3. By amending the definition of "inspector" to read:

""Inspector" means any employee or official of the department authorized by the [~~board~~] director to administer and enforce the provisions of this [~~law.~~] chapter."

4. By repealing the definition of "administrator".

["~~"Administrator" means the administering officer of the quality assurance division, or any qualified person so designated by the chairperson.~~"]

5. By repealing the definition of "board".

["~~"Board" means board of agriculture.~~"]

6. By repealing the definition of "chairperson".

["~~"Chairperson" includes the chairperson of the board of agriculture and when specifically designated by the chairperson for the purpose of effectuating this chapter, the deputy to the chairperson.~~"]

SECTION 33. Section 486-7, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) These rules may include:

(1) Standards of net measure, and reasonable standards of fill for any package;

(2) The technical and reporting procedures to be followed, the report and record forms to be used by persons subject to the provisions of this chapter, and the marks of approval and rejection to be used by the administrator, inspectors, and measurement standards personnel in the discharge of their official duties;

(3) Exemptions from the sealing, labeling, marking, or other requirements of the respective parts of this chapter;

(4) The voluntary registration of service persons and service agencies for commercial weighing and measuring devices. These rules may include, but are not limited to, provisions for registration fees, period of registration, requirements for test equipment, privileges and responsibilities of a voluntary registrant, reports required, qualification requirements, examinations to be administered, certificates of registration, and means for revocation of registration;

(5) Schedules and fees for licensing measuring devices;

(6) Schedules and fees for calibrating or testing measurement standards, and registration of the products covered by such measurement standards;

(7) Specifications, tolerances, and other technical requirements with respect to the packaging, registering, handling, storing, advertising, labeling, dispensing, and selling of petroleum products;

(8) Specifications, tolerances, and other technical requirements for weighing and measuring devices;

(9) Practices to assure that amounts of commodities or services sold are determined in accordance with good commercial practice and are so determined and represented as to be accurate and informative to all parties at interest;

(10) Requirements for type evaluation;

(11) Definitions, applicability, use, units, standards, and tolerances relating to the International System of Units; [~~and~~]

(12) Requirements for the weighing of coffee before shipment out-of-state and certification of the weight of the coffee; and

[~~(12)~~] (13) Such other rules as the board deems necessary for the enforcement of this chapter."

SECTION 34. Section 141-4, Hawaii Revised Statutes, is repealed.

["~~§141-4 Weights of coffee; rules.~~ The department of agriculture may make rules respecting the weighing of coffee prior to its shipment to points outside the State, and providing for the certification of weights thereof. Further, a reasonable schedule of fees to defray the expense of administering this section shall be established by the department, which fees shall be collected and deposited with the state director of finance to the credit of the general fund; provided that the department shall consult the appropriate industries, organizations, and agencies prior to the promulgation of the rules."]

SECTION 35. The following sections of the Hawaii Revised Statutes are amended by replacing the term "department" with the term "board" wherever the former occurs: 486-2, 486-4, 486-6, 486-7, 486-31, 486-36, 486-53, 486-54, 486-56, 486-105, 486-108, 486-109, 486-118, 486-122, 486-132, 486-135, and 486-137.

SECTION 36. (a) Section 486-33, Hawaii Revised Statutes, is amended by replacing the term "director" with the term "chairperson" wherever the former occurs.

(b) The following sections of the Hawaii Revised Statutes are amended by replacing the term "director" with the term "administrator" wherever the former occurs: 486-4, 486-5, 486-6, 486-23, 486-24, 486-31, 486-36, 486-54, 486-78, 486-79, 486-80, 486-81, 486-83, and 486-118.

PART XI

SECTION 37. The purpose of this part is to transfer the function of civil identification from the department of the attorney general to the office of the lieutenant governor.

SECTION 38. Section 846-21, Hawaii Revised Statutes, is amended to read as follows:

"§846-21 Authority of [~~attorney general.~~] lieutenant governor. The [~~attorney general~~] lieutenant governor shall carry out this part. In conformity with chapter 76, the [~~attorney general~~] lieutenant governor may appoint [~~such~~] subordinates, at [~~such~~] compensation[,] within the limits of available appropriations [~~therefor~~], or without compensation, as may be necessary or proper to carry out this part[~~, and, the attorney general~~]. The lieutenant governor may delegate to [~~such~~] subordinates [~~such~~] any of the [~~attorney general's~~] lieutenant governor's powers and duties as may be necessary for the efficient administration of this part."

SECTION 39. Section 846-24, Hawaii Revised Statutes, is amended to read as follows:

"§846-24 Powers and functions. The [~~department of the attorney general~~] office of the lieutenant governor shall register and issue certificates of identification to all persons in the State applying for the certificates in accordance with the requirements of this part."

SECTION 40. Section 846-27, Hawaii Revised Statutes, is amended by amending subsections (c) and (d) to read as follows:

"(c) Application for renewal of a certificate of identification issued after November 1, 1998, for a person sixty-five years old or older may be done by mailing in a completed application and fee, if there is no change in name and citizenship. The [~~department~~] lieutenant governor shall adopt rules to allow for renewal by mail for persons with physical or mental disabilities for whom application in person presents a serious burden.

(d) There is established in the state treasury a revolving fund to be known as the state identification revolving fund. The fund shall consist of all fees assessed for the processing and issuance of certificates of identification under this part. The fund shall be administered by the [~~attorney general~~] lieutenant governor for the purposes of this part."

SECTION 41. Section 846-32, Hawaii Revised Statutes, is amended to read as follows:

"§846-32 Correction or alteration of records and certificates in cases of error or subsequent changes concerning names, citizenship, description, etc. (a) If, after registration, the name of any registrant is legally changed by marriage, divorce, adoption, legitimation, order of the lieutenant governor, or other legal means, or if there is a change in the registrant's citizenship, the registrant or other person in charge of the registrant (in the case of a minor or incompetent person), within thirty days after the change of name or citizenship, shall report the change and present the registrant's certificate of identification to the [~~department of the attorney general.~~] office of the lieutenant governor. The [~~department,~~] lieutenant governor, upon being satisfied as to the change and receiving payment of the fee, shall cancel the certificate and issue a new certificate bearing the new name or citizenship of the registrant, making appropriate notation of the facts upon the records of the [~~department.~~] office of the lieutenant governor.

(b) If any error has been made in any item of information contained in the records of the [~~department~~] office of the lieutenant governor or the certificate of identification concerning any registrant, the [~~department,~~] office of the lieutenant governor, of its own motion, or upon application by the registrant, and upon receipt of satisfactory evidence that an error has been committed, with the approval of the [~~attorney general~~] lieutenant governor or the [~~attorney general's~~] lieutenant governor's specially authorized representatives, may correct the error and, in such case, shall make appropriate changes or notations stating the error and the correct information upon the records of the [~~department~~] office of the lieutenant governor and the certificate of identification.

(c) In case any item of personal information originally correct with respect to any registrant shall change after registration, the change, if material, may be registered by the [~~department~~] office of the lieutenant governor and the records and certificate of identification may be altered to conform thereto, upon receipt by the [~~department~~] office of the lieutenant governor of satisfactory evidence as to the change and the approval of the [~~attorney general~~] lieutenant governor or the [~~attorney general's~~] lieutenant governor's specially authorized representative."

SECTION 42. The following sections of the Hawaii Revised Statutes are amended by replacing the term "lieutenant governor" with the term "attorney general" and by replacing the terms "lieutenant governor" or "office of the lieutenant governor" with the terms "department" or "department of the attorney general", as appropriate: sections 846‑22, 846‑23, 846‑28, 846‑29, 846‑30, 846‑34, 846‑35, and 846‑37.

PART XII

SECTION 43. The purpose of this part is to transfer the arts and culture development branch within the department of business, economic development, and tourism to the state foundation on culture and the arts, which is placed within the department of accounting and general services for administrative purposes.

SECTION 44. All rights, powers, functions, and duties of the arts and culture branch of the department of business, economic development, are transferred to the state foundation on culture and the arts.

PART XIII

SECTION 45. The purpose of this part is to abolish the Hawaii health systems corporation in its role as a central corporation-wide policy-making and managerial entity and to transfer all centralized powers of the Hawaii health systems corporation to the remaining five regional system boards.

SECTION 46. Section 323F-2, Hawaii Revised Statutes, is amended to read as follows:

"§323F-2 Hawaii health systems corporation. [(a) There is established the Hawaii health systems corporation, which shall be a public body corporate and politic and an instrumentality and agency of the State. The corporation shall be placed within the department of health for the administrative purposes specified in section 26-35(a)(6) only.

~~(b) The corporate organization shall be divided into~~] There shall be five regional health care systems, as follows:

(1) The Oahu regional health care system;

(2) The Kauai regional health care system;

(3) The Maui regional health care system;

(4) The east Hawaii regional health care system, comprising the Puna district, north Hilo district, south Hilo district, Hamakua district, and Kau district; and

(5) The west Hawaii regional health care system, comprising the north Kohala district, south Kohala district, north Kona district, and south Kona district;

and shall be identified as regional systems I, II, III, IV, and V, respectively."

SECTION 47. Section 323F-3.5, Hawaii Revised Statutes, is amended by amending subsections (a) to (d) to read as follows:

"(a) There is hereby established a regional system board of directors to govern each of the five regional systems [~~specified in section 323F‑2,~~] no later than January 1, 2008. The regional system boards of directors shall carry out the duties and responsibilities as set forth in this chapter and as further delegated by the corporation.

(b) Upon its establishment, a regional system board shall assume custodial care of all financial assets, real property, including land, structures, and fixtures, or other physical assets, such as personal property, including furnishings, equipment, and inventory[~~, of the corporation~~] within its regional system. No sale or encumbrance of any such real property or such other financial assets, physical assets of the corporation shall be permitted without the [~~mutual~~] consent of the [~~Hawaii health systems corporation board and the~~] appropriate regional system board. No additional debts or liabilities or superior debts shall be added [~~by the corporation~~] to any regional system board that would negatively impact the holders of bond notes. Each regional system board shall be liable for any liabilities arising from financial assets, real or personal property in its custodial care.

(c) Each regional system shall be governed by a regional system board of directors to consist of not less than seven members and not more than fifteen members, as determined by the regional system board after the initial regional system board is established.

(1) Each regional system board shall initially consist of twelve members to be appointed by the governor under section 26-34 or as provided in this section, as follows:

(A) Four members shall be appointed by the governor within thirty days of receipt of a qualified list of candidates as follows:

(i) Two members shall be chosen from a list of four individuals submitted by the speaker of the house of representatives within fifteen days of July 1, 2007; provided that this list shall not include physicians; and

(ii) Two members shall be chosen from a list of four individuals submitted by the president of the senate within fifteen days of July 1, 2007; provided that this list shall not include physicians;

(B) Four members shall be appointed by the governor within thirty days from a list of eight individuals nominated by the regional public health facility management advisory committee within fifteen days of July 1, 2007. These individuals may be medical and health care providers and professionals, consumers, and knowledgeable individuals in other appropriate areas such as business, finance, and law; provided that these individuals shall not be physicians currently in active practice; and

(C) Three physicians shall be appointed by the governor within thirty days from a list submitted within fifteen days of July 1, 2007, of six physicians nominated by a majority vote of the medical staff of the public health facilities in the regional system present at a duly noticed meeting from a list of qualified candidates submitted by the medical executive committees in the regional system; [~~and~~

~~(D)~~ ~~The corporation board chairperson or chairperson's designee shall serve as an ex officio, nonvoting member of each regional system board;~~]

(2) One member of each regional system board nominated by the speaker of the house of representatives, the president of the senate, and medical executive committees in a regional system shall be appointed for a term of two years;

(3) One member of each initial regional system board nominated by the regional public health facility management advisory committee for the regional system shall be appointed for a term of two years;

(4) The remaining members of each initial regional system board and all members appointed thereafter shall be appointed for terms of three years; and

(5) New regional system board members appointed to any regional system board after the initial regional system board shall be selected by a two-thirds affirmative vote of the existing regional system board members.

Except for the ex officio members of each regional system board, all other members of a regional system board shall be residents of the region. Each regional system board shall elect its own chair.

(d) Each regional system board shall be responsible for local governance, operations, and administration of the delivery of services in its respective regional system as set forth in this chapter [~~and as further delegated by the corporation~~]. Each regional system board shall include medical and health care providers and professionals, consumers, and knowledgeable individuals in other appropriate areas, such as business, finance, and law; provided that no more than three members of the regional system board shall be physicians. Each regional system board shall be as balanced and representative of the community stakeholders as possible."

SECTION 48. Section 323F-7, Hawaii Revised Statutes, is amended to read as follows:

"§323F-7 Duties and powers of the [~~corporation and~~] regional system boards. (a) [Notwithstanding any other law to the contrary and unless otherwise specified, only those duties and powers related to corporation-wide matters, including but not limited to corporation-wide budgeting, personnel policies, procurement policies, fiscal policies, accounting policies, policies related to affiliations, joint ventures and contracts, regulatory compliance, risk management, continuing medical education programs, strategic planning, and capital planning, including the issuance of revenue bonds in any amount, shall be carried out by the corporation board in collaboration with the regional system boards.] Duties and powers related to personnel policies, procurement policies, fiscal policies, accounting policies, policies related to affiliations, joint ventures and contracts, regulatory compliance, risk management, continuing medical education programs, strategic planning, and capital planning, including the issuance of revenue bonds in any amount, and to the operation of facilities within each regional system, including but not limited to regional system and facility budgeting, employment and removal of regional system and facility personnel, purchasing, regional system strategic and capital planning, organization, quality assurance, improvement and reporting, credentialing of medical staff, [~~and the issuance of revenue bonds in any amount with corporation board approval,~~] shall be carried out by the regional system boards, either directly or by delegation to regional and facility administration. [~~Unless otherwise prohibited, the duties and powers granted to the corporation board may be delegated to the regional system boards.~~

(b) Duties and powers exercised by the regional system boards under this chapter or delegated to the regional system boards by the corporation board shall be consistent with corporation-wide policies. Wherever appropriate, corporation-wide policies shall take into account differences among regional systems and among types of facilities, particularly acute care, critical access, and long-term care facilities within the system.

New corporation-wide policies, and major changes to existing policies other than those changes mandated by legal or regulatory requirements, shall be developed by the corporation board after consultation with a policies committee. The policies committee shall be made up of representatives of the corporation board and each regional system board or designees of each board. The corporation board shall have two representatives on this committee. The corporation board shall review and consider approval of the policies within thirty days of transmittal by the policies committee or at the next board meeting; provided that, if the policies committee fails to take action within thirty days of receiving the proposed policy, the corporation board may consider and adopt or reject or revise the policy. The regional system boards and corporation board, as needed, may submit a request to the committee to alter corporation-wide policies along with detailed justification for the request. The regional system boards and the corporation board shall collaboratively establish a procedure to further implement this section.

~~(c)~~] (b) Notwithstanding any other law to the contrary, [~~the corporation and any of the~~] each regional system [~~boards~~] board shall exercise the following duties and powers:

(1) [Developing corporation-wide policies, procedures, and rules necessary or appropriate to plan, operate, manage, and control the system of public health facilities and services without regard to chapter 91; provided that each regional system board shall be] Be responsible for its own policies, procedures, and rules necessary or appropriate to plan, operate, manage, and control the public health facilities within its own regional system [~~consistent with corporate policies~~];

(2) [~~Evaluating the need for additional health facilities and services; provided that each regional system board shall be~~] Be responsible for [~~the evaluation~~] evaluating the need for additional health facilities and services within its own regional system;

(3) Entering into and performing any contracts, leases, cooperative agreements, partnerships, or other transactions whatsoever that may be necessary or appropriate [~~in the performance of its purposes and responsibilities, and~~] on terms the [~~corporation, or~~] regional system boards[,] may deem appropriate[,] with either:

(A) Any agency or instrumentality of the United States, or with any state, territory, or possession, or with any subdivision thereof; or

(B) Any person, firm, association, partnership, or corporation, whether operated on a for-profit or not-for-profit basis;

provided that the transaction furthers the public interest; [and provided further that if any dispute arises between any contract, lease, cooperative agreement, partnership, or other transaction entered into by the corporation and a regional system board with regard to matters solely within that regional system, after July 1, 2007, the contract, lease, cooperative agreement, partnership, or other transaction entered into by the regional system board shall prevail; and provided further that such agreements are consistent with corporation policies;]

(4) Conducting activities and entering into business relationships as the [~~corporation board, or any~~] regional system board[,] deems necessary or appropriate, including but not limited to:

(A) Creating nonprofit corporations, including but not limited to charitable fund-raising foundations, to be controlled wholly by [~~the corporation,~~] any regional system board[,] or jointly with others;

(B) Establishing, subscribing to, and owning stock in business corporations individually or jointly with others; and

(C) Entering into partnerships and other joint venture arrangements, or participating in alliances, purchasing consortia, health insurance pools, or other cooperative arrangements, with any public or private entity; provided that any corporation, venture, or relationship entered into under this section furthers the public interest; provided further that this paragraph shall not be construed to authorize [~~the corporation or~~] a regional system board to abrogate any responsibility or obligation under paragraph (15);

[provided that each regional system board shall be responsible for conducting the activities under this paragraph in its own regional system consistent with policies established by the corporation board;]

(5) Participating in and developing prepaid health care service and insurance programs and other alternative health care delivery programs, including programs involving the acceptance of capitated payments or premiums that include the assumption of financial and actuarial risk; [provided that each regional system board shall be responsible for conducting the activities under this paragraph in its own regional system consistent with policies established by the corporation board;]

(6) Executing, in accordance with all applicable bylaws, rules, and laws, all instruments necessary or appropriate in the exercise of any powers of the [~~corporation or~~] regional system boards;

(7) Preparing and executing all [~~corporation-wide budgets, policies, and procedures or any~~] regional system budgets, policies, and procedures; [provided that the regional system boards shall submit their regional and facility budgets to the corporation to be consolidated into a corporation-wide budget for purposes of corporation-wide planning and appropriation requests. Regional system and facility budgets shall be received by the corporation and shall be included in the corporation-wide budget upon submittal to the corporation;]

(8) Setting rates and charges for all services [~~provided by the corporation~~] without regard to chapter 91[; provided that the duty and power of the corporation board shall be limited to approving the rates and charges developed by the regional system boards for the regional system's facilities and services]. Rates and charges may vary among regional systems and facilities [~~and may be consolidated with the rates of other regional systems into one charge master~~]. Third-party payer contracts may be negotiated [~~at the corporation-wide level with input from~~] by the regional systems[~~, taking into consideration the rates set by the regional system boards~~]. For purposes of securing revenue bonds, the [~~corporation or~~] regional system board may covenant to set, and if necessary increase, rates and charges as needed to pay debt service and related obligations plus a coverage factor;

(9) [~~Developing a corporation-wide hospital system that is subject to chapters 76 and 89; provided that employment~~] Employment of regional system and facility personnel shall be the responsibility of the regional system boards pursuant to [~~corporation-wide policies and procedures,~~] applicable laws, rules, [~~regulations,~~] and collective bargaining agreements;

(10) [~~Developing the corporation's corporation-wide capital and strategic plans or any regional system board's capital and strategic plans; provided that each~~] Each regional system board shall be responsible for development of capital and strategic plans in its own regional system [~~that shall be consistent with, and incorporated into, the overall corporation-wide plans; and~~]; provided [~~further~~] that [~~the corporation and~~] each regional system board shall be entitled to undertake the acquisition, construction, and improvement of property, facilities, and equipment to carry out these capital and strategic plans;

(11) Suing and being sued; provided that [~~only the corporation may sue or be sued; and provided further that the corporation and~~] the regional system boards shall enjoy the same sovereign immunity available to the State;

(12) Making and altering [~~corporation board and~~] regional system board bylaws for its organization and management without regard to chapter 91 and consistent with this chapter[~~; provided that each regional system board shall be responsible for the final approval of its regional system board bylaws~~];

(13) Adopting rules without regard to chapter 91 governing the exercise of the [~~corporation's or~~] regional system boards' powers and the fulfillment of its purpose under this chapter;

(14) Entering into any contract or agreement whatsoever, not inconsistent with this chapter or the laws of this State, and authorizing the [~~corporation,~~] regional system boards[,] and chief executive officers to enter into all contracts, execute all instruments, and do all things necessary or appropriate in the exercise of the powers granted in this chapter, including securing the payment of bonds; [provided that the corporation board shall delegate to a regional system board its authority to enter into and execute contracts or agreements relating to matters exclusively affecting that regional system; provided further that a regional system board shall exercise this power consistent with corporation-wide policies; and provided further that ~~contracts or agreements executed by a regional system board shall encumber only the regional subaccounts of that regional system board;~~]

(15) Issuing revenue bonds up to $100,000,000 subject to the approval of the governor or the director of finance; provided that:

(A) All revenue bonds shall be issued pursuant to part III, chapter 39; and

(B) [~~The corporation and any~~] A regional system board shall have the power to issue revenue bonds in any amount without regard to any limitation in chapter 39; [~~and~~

~~(C)~~ The corporation shall have the power to incur debt, including the issuance of revenue bonds in any amount, and the regional system boards shall have the power to issue revenue bonds in any amount upon approval by the corporation board;]

(16) Reimbursing the state general fund for debt service on general obligation bonds or reimbursable general obligation bonds issued by the State for the purposes of [~~the corporation or~~] any regional system board;

(17) Pledging or assigning all or any part of the receipts, revenues, and other financial assets of the [~~corporation or the~~] regional system boards for purposes of meeting or securing bond or health systems liabilities[~~; provided that each regional system board shall be responsible for conducting the activities under this paragraph in its own regional system~~]. Any pledge or assignment by [~~the corporation or~~] any regional system board to secure revenue bonds or health system liabilities shall be valid and binding in accordance with its terms against the pledgor, creditors, and all others asserting rights thereto from the time the pledge or assignment is made, without the need of physical delivery, recordation, filing, or further act. [~~The corporation shall not take or omit to take any act that would interfere with, impair, or adversely affect any pledge of assignment by a regional system board pursuant to this chapter.~~] In connection with issuing revenue bonds or related obligations[~~, consistent with corporation policies and procedures,~~] any regional system board may make such other covenants[~~, binding on the regional system board and the corporation,~~] that the regional system board determines to be necessary or appropriate to establish and maintain security for the revenue bonds or related obligations;

[~~(18)~~ Owning, purchasing, leasing, exchanging, or otherwise acquiring property, whether real, personal or mixed, tangible or intangible, and of any interest therein, in the name of the corporation, which property is not owned or controlled by the State but is owned or controlled by the corporation; provided that:

~~(A)~~] (18) Regional system boards shall have custodial control over facilities and physical assets in their respective regional systems. A regional system board may own, purchase, lease, exchange, or otherwise acquire property, whether real, personal or mix, tangible or intangible, and of any interest therein[~~, other than property owned or controlled by the corporation,~~] in the name of the regional system board; [~~provided further that a regional system board shall be subject to section 323F-3.5; and~~

~~(B)~~ ~~Each regional system board shall be responsible for conducting the activities under this paragraph in its own regional system;~~]

(19) Maintaining, improving, pledging, mortgaging, selling, or otherwise holding or disposing of property, whether real, personal or mixed, tangible or intangible, and of any interest therein, at any time and manner, in furtherance of the purposes and mission of [~~the corporation or~~] any regional system board; provided that [~~the corporation or any~~] each regional system board legally holds or controls the property in its own name; provided further that other than to secure revenue bonds and related obligations and agents, [~~the corporation or any~~] a regional system board shall not sell, assign, lease, hypothecate, mortgage, pledge, give, or dispose of all or substantially all of its property; [and provided further that each regional system board shall be responsible for conducting the activities under this paragraph in its own regional system, and control over such property shall be delegated to each regional system board;]

(20) Purchasing insurance and creating captive insurers in any arrangement deemed in the best interest of [~~the corporation,~~] a regional system board, including but not limited to funding and payment of deductibles and purchase of reinsurance; provided that [~~only the corporation shall have the power to create captive insurers to benefit public health facilities and operations in all regional systems; and provided further that~~] a regional system board may purchase insurance for its regional system in collaboration with the other regional systems [~~and the corporation until captive coverage is provided by the corporation~~];

(21) Acquiring by condemnation, pursuant to chapter 101, any real property required by [~~the corporation~~] a regional system board to carry out the powers granted by this chapter;

(22) Depositing any moneys of [~~the corporation or~~] any regional system board in any banking institution within or without the State, and appointing, for the purpose of making deposits, one or more persons to act as custodians of the moneys of [~~the corporation; or~~] any regional system board; [~~provided that regional system boards may deposit moneys in banking institutions pursuant to corporation-wide guidelines established by the corporation board;~~]

(23) Contracting for and accepting any gifts, grants, and loans of funds, property, or any other aid in any form from the federal government, the State, any state agency, or any other source, or any combination thereof, and complying, subject to this chapter, with the terms and conditions thereof[~~; provided that the regional system boards shall be responsible for contracting for and accepting any gifts, grants, loans, property, or other aid if intended~~] to benefit the public health facilities and operations exclusively in their respective regional systems; [~~and provided further that all contracting for or acceptance of gifts, grants, loans, property, or other aid shall be consistent with corporation-wide policies established by the corporation board;~~]

(24) Providing health and medical services for the public directly or by agreement or lease with any person, firm, or private or public corporation, partnership, or association through or in the health facilities of the [~~corporation or~~] regional system boards or otherwise; [~~provided that the regional system boards shall be responsible for conducting the activities under this paragraph in their respective regional systems;~~]

(25) Approving medical staff bylaws, rules, and medical staff appointments and reappointments for all public health facilities of [~~the corporation or any~~] a regional system board, including but not limited to determining the conditions under which a health professional may be extended the privilege of practicing within a health facility, as determined by the respective regional system board [~~and consistent with corporate-wide policies~~], and adopting and implementing reasonable rules, without regard to chapter 91, for the credentialing and peer review of all persons and health professionals within the facility; [~~provided that regional system boards shall be the governing body responsible for all medical staff organization, peer review, and credentialing activities to the extent allowed by law;~~]

(26) (A) Investing any funds not required for immediate disbursement in property or in securities that meet the standard for investments established in chapter 88 as provided by [~~the corporation board or~~] any regional system board; provided that proceeds of bonds and moneys pledged to secure bonds may be invested in obligations permitted by any document that authorizes the issuance or securing of bonds; and provided further that the investment assists [~~the corporation or any~~] a regional system board in carrying out its public purposes; selling from time to time securities thus purchased and held, and depositing any securities in any bank or financial institution within or without the State. Any funds deposited in a banking institution or in any depository authorized in this section shall be secured in a manner and subject to terms and conditions as [~~the corporation board or~~] a regional system board may determine, with or without payment of any interest on the deposit, including without limitation time deposits evidenced by certificates of deposit. Any bank or financial institution incorporated under the laws of this State may act as depository of any funds of [~~the corporation or~~] a regional system board and may issue indemnity bonds or may pledge securities as may be required by [~~the corporation or~~] a regional system board; [~~provided that regional system boards may exercise the powers under this subsection with respect to financial assets of the regional system consistent with corporation-wide policies;~~] and

(B) Notwithstanding subparagraph (A), contracting with the holders of any of its notes or bonds as to the custody, collection, securing, investment, and payment of any moneys of [~~the corporation or~~] a regional system board and of any moneys held in trust or otherwise for the payment of notes or bonds and carrying out the contract. Moneys held in trust or otherwise for the payment of notes or bonds or in any way to secure notes or bonds, and deposits of such moneys, may be secured in the same manner as moneys of [~~the corporation or~~] a regional system board, and all banks and trust companies are authorized to give security for the deposits;

(27) Entering into any agreement with the State, including but not limited to contracts for the provision of goods, services, and facilities in support of [~~the corporation's programs or~~] the regional system boards' programs, and contracting for the provision of services to or on behalf of the State; [provided that the regional system boards shall be responsible for entering into agreements to provide goods, services, and facilities in support of programs in their respective regional systems consistent with corporation-wide policies;]

(28) Having a seal and altering the same at pleasure;

(29) Waiving, by means that [~~the corporation or~~] a regional system board deems appropriate, the exemption from federal income taxation of interest on the [~~corporation's or~~] regional system boards' bonds, notes, or other obligations provided by the Internal Revenue Code of 1986, as amended, or any other federal statute providing a similar exemption;

(30) Developing internal policies and procedures for the procurement of goods and services, consistent with the goals of public accountability and public procurement practices, and subject to management and financial legislative audits; provided that the regional system boards shall [~~be responsible for developing internal policies and procedures for each of their regional systems consistent with the corporation's policies and procedures; and further provided that:~~

~~(A)~~ ~~The regional system boards and the corporate board shall~~] enjoy the exemption under section 103-53(e)[;

~~(B)~~ ~~The regional system boards shall enjoy~~] and the exemption under chapter 103D; [~~and~~

~~(C)~~ ~~The corporation shall be subject to chapter 103D;~~]

(31) [~~Authorizing and establishing positions; provided that regional~~] The system boards shall be responsible for hiring and firing regional and facility personnel [consistent with corporation policies, except a regional chief executive officer and regional chief financial officer shall only be hired or dismissed upon the approval of the regional system board and the corporation board as further set forth in section 323F-8.5];

(32) Having and exercising all rights and powers necessary or incidental to or implied from the specific powers granted in this chapter, which specific powers shall not be considered as a limitation upon any power necessary or appropriate to carry out the purposes and intent of this chapter; [~~provided that the regional system boards shall be responsible for having and exercising all powers and rights with respect to matters in their regional systems consistent with the law;~~] and

(33) Each regional system, through its regional system board, shall:

(A) Develop policies and procedures necessary or appropriate to plan, operate, manage, and control the day-to-day operations of facilities within the regional system [~~that are consistent with corporation-wide policies~~];

(B) Exercise custodial control over and use of all assets [~~of the corporation~~] that are located in the regional system pursuant to this chapter; and

(C) Expend funds within its approved regional system budget and expend additional funds in excess of its approved regional system budget [~~upon approval of the corporation board~~].

(d) Each regional system board shall not be subject to chapters 36 to 38, 40, 41D, and 103D as well as part I of chapter 92 and shall enjoy the exemptions contained in sections 102-2 and 103-53(e), except as otherwise provided in this chapter. [~~The corporation shall not be subject to chapters 36 to 38, 40, and 41D, as well as part I of chapter 92, and shall enjoy the exemptions contained in sections 102-2 and 103-53(e).~~]

(e) The duties and powers granted to [~~the corporation or~~] any regional system board may not be used to enter into contractual or business relationships that have the practical effect of allowing or are intended to allow private-sector counterparts to replace existing employee positions or responsibilities [~~within the corporation or~~] in any regional system or its facilities; provided the [~~corporation or~~] regional system boards shall be allowed to enter into such relationships to the extent and for the purposes that the division of community hospitals could have done under collective bargaining contracts that were in effect for the 1995-1996 fiscal year."

SECTION 49. Section 323F-3, Hawaii Revised Statutes, is repealed.

["~~§323F-3 Corporation board.~~ (a) The corporation shall be governed by a fifteen-member board of directors that shall carry out the duties and responsibilities of the corporation other than those duties and responsibilities relating to the establishment of any captive insurance company pursuant to section [323F-7(c)(20)] and the operation thereof.

~~(b) Twelve members of the corporation board shall be appointed as follows:~~

~~(1)~~ Two members from regional system I who reside in the city and county of Honolulu shall be appointed by the governor from a list consisting of four individuals, two individuals submitted by the speaker of the house of representatives and two individuals submitted by the president of the senate within fifteen days of July 1, 2007; provided that this list shall not include physicians;

~~(2)~~ Two members from regional system II who reside in the county of Kauai shall be appointed by the governor from a list consisting of four individuals, two individuals submitted by the speaker of the house of representatives and two individuals submitted by the president of the senate within fifteen days of July 1, 2007; provided that this list shall not include physicians;

~~(3)~~ Two members from regional system III who reside in the county of Maui shall be appointed by the governor from a list consisting of four individuals, two individuals submitted by the speaker of the house of representatives and two individuals submitted by the president of the senate within fifteen days of July 1, 2007; provided that this list shall not include physicians;

~~(4)~~ Two members from regional system IV who reside in the eastern section of the county of Hawaii shall be appointed by the governor from a list consisting of four individuals, two individuals submitted by the speaker of the house of representatives and two individuals submitted by the president of the senate within fifteen days of July 1, 2007; provided that this list shall not include physicians;

~~(5)~~ Two members from regional system V who reside in the western section of the county of Hawaii shall be appointed by the governor from a list consisting of four individuals, two individuals submitted by the speaker of the house of representatives and two individuals submitted by the president of the senate within fifteen days of July 1, 2007; provided that this list shall not include physicians; [and]

~~(6)~~ ~~Two additional members who reside in the State shall be appointed by the governor.~~

The thirteenth and fourteenth members, who shall serve as voting members, shall be physicians with active medical staff privileges at one of the corporation's public health facilities. The physician members shall each serve a term of two years. The initial physician members shall be from regional system II, and subsequent physician members shall come from regional systems IV, III, and V respectively. The physician member positions shall continue to rotate in this order. The physician members shall be appointed to the corporation board by a two-thirds majority vote of the corporation board from a list of qualified nominees submitted by the public health facility management advisory committees or by any regional system board. If for any reason a physician member is unable to serve a full term, the remainder of that term shall be filled by a physician from the same regional system.

~~The fifteenth member shall be the director of health or the director's designee, who shall serve as an ex officio, voting member.~~

Appointments to the corporation board, with the exception of the chairperson of the executive public health facility management advisory committee and the regional physician member, shall be made by the governor, subject to confirmation by the senate pursuant to section 26-34.

~~The appointed board members shall serve for a term of four years; provided that the first member appointed from each regional system shall be appointed for a term of two years.~~

Any vacancy shall be filled in the same manner provided for the original appointments. The corporation board shall elect its own chair from among its members. Appointments to the corporation board shall be as representative as possible of the system's stakeholders as outlined in this subsection.

(c) The selection, appointment, and confirmation of any nominee shall be based on ensuring that board members have diverse and beneficial perspectives and experiences and that they include, to the extent possible, representatives of the medical, business, management, law, finance, and health sectors, and patients or consumers. Members of the board shall serve without compensation but may be reimbursed for actual expenses, including travel expenses incurred in the performance of their duties.

(d) Any member of the board may be removed for cause by the governor or for cause by vote of a two-thirds majority of the board's members then in office. For purposes of this section, cause shall include without limitation:

~~(1)~~ ~~Malfeasance in office;~~

~~(2)~~ ~~Failure to attend regularly called meetings;~~

~~(3)~~ ~~Sentencing for conviction of a felony, to the extent allowed by section 831-2; or~~

~~(4)~~ ~~Any other cause that may render a member incapable or unfit to discharge the duties required under this chapter.~~

Filing nomination papers for elective office or appointment to elective office, or conviction of a felony consistent with section 831-3.1, shall automatically and immediately disqualify a board member from office."]

SECTION 50. Section 323F-7.5, Hawaii Revised Statutes, is repealed.

["~~[§323F-7.5]~~ Regional system boards; delegated authority. If the Hawaii health systems corporation board is unable to act on important transactions in as timely a manner as the chairperson of the corporation board deems reasonable, the chairperson of the corporation board may further delegate authority to the regional system boards to take action on specific matters."]

SECTION 51. Section 323F-8, Hawaii Revised Statutes, is repealed.

["~~§323F-8 Chief executive officer; exempt positions.~~ (a) The corporation board may appoint, exempt from chapter 76 and section 26-35(a)(4), a chief executive officer of the corporation whose salary shall be set by the corporation board. The chief executive officer may also appoint up to eighteen other personnel, exempt from chapters 76 and 89, to work directly for the chief executive officer and the corporate board.

~~(b) The corporation board or its designee may discharge its exempt personnel with or without cause; provided that removal without cause shall not prejudice any contract rights of personnel.~~

(c) The corporation's chief executive officer or the chief executive officer's designee may appoint, exempt from chapters 76 and 89, hospital administrators, assistant administrators, directors of nursing, medical directors, and staff physicians, to facilitate the management of facilities within the corporation; provided that directors of nursing appointed before July 1, 1998, may maintain their civil service status as provided in chapter 76 by so communicating in writing to the chief executive officer by October 31, 1998. Hospital administrators and assistant administrators appointed before July 1, 1983, may maintain their permanent civil service status as provided in chapter 76.

(d) Hiring, firing, compensation packages, and other personnel actions with respect to employees not covered by chapter 76 and 89 shall be governed by policies and guidelines established by the corporation, except as otherwise provided in this chapter.

(e) Upon the establishment of a regional system board, the authority to appoint regional hospital administrators, assistant administrators, directors of nursing, medical directors, and staff physicians under subsection (c) shall be superseded by section 323F-8.5 for that regional system. No incumbent personnel shall lose a position without specific action taken by the regional system board."]

SECTION 52. On July 1, 2009, all assets of the Hawaii health systems corporation located in each respective regional health care system pursuant to section 323F-2, Hawaii Revised Statutes, shall be transferred to the respective regional health care system.

PART XIV

SECTION 53. The purpose of this part is to transfer the film industry branch within the department of business, economic development, and tourism to the Hawaii tourism authority.

SECTION 54. Chapter 201B, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part . HAWAII TELEVISION AND FILM DEVELOPMENT

§201B-A Definitions. As used in this part:

"Applicant" means a person applying for a grant or venture capital investment from the authority under this part.

"Board" means the Hawaii television and film development board.

"Eligible Hawaii project" or "project" means an entertainment project in which at least seventy-five per cent of the budget for the production costs, excluding salaries and costs for the producer, director, writer, screenplay, and actors in the project, is dedicated for the purchase or lease of goods or services from a vendor or supplier who is located and doing business in the State.

"Fund" means the Hawaii television and film development special fund.

"Venture capital investment" means any of the following investments in a project:

(1) Common or preferred stock and equity securities without a repurchase requirement for at least five years;

(2) A right to purchase stock or equity securities;

(3) Any debenture, whether or not convertible or having stock purchase rights, which is subordinated, together with security interests against the assets of the borrower, by their terms to all borrowings of the borrower from other institutional lenders, and that is for a term of not less than three years, and that has no part amortized during the first three years; and

(4) General or limited partnership interests.

§201B‑B Hawaii television and film development board. (a) There is established the Hawaii television and film development board. The board shall be attached to the Hawaii tourism authority for administrative purposes only. The board shall administer the grant and venture capital investment programs and the Hawaii television and film development special fund established under this part. The board shall also assess and consider the overall viability and development of the television and film industries and make recommendations to appropriate state or county agencies.

(b) The board shall be composed of nine members, four of whom shall be appointed by the governor pursuant to section 26‑34, and all of whom shall serve four-year staggered terms. One of the governor's appointments shall be made from a list of nominees submitted by the president of the senate and another appointment shall be made from a list of nominees submitted by the speaker of the house of representatives. The four appointed members shall possess a current working knowledge of the film, television, or entertainment industry. The executive director of the Hawaii tourism authority and the chairs of the four county film commissions, or their equivalent, shall serve as ex officio voting members, who may be represented on the board by designees.

The chairperson and vice chairperson of the board shall be selected by the board by majority vote. Five members shall constitute a quorum, whose affirmative vote shall be necessary for all actions by the board. The members shall serve without compensation but shall be reimbursed for expenses, including travel expenses, necessary for the performance of their duties.

(d) The board may adopt rules pursuant to chapter 91 to effectuate the purposes of this part.

§201B‑C Hawaii television and film development special fund. (a) There is established in the state treasury the Hawaii television and film development special fund into which shall be deposited:

(1) Appropriations by the legislature;

(2) Donations and contributions made by private individuals or organizations for deposit into the fund;

(3) Grants provided by governmental agencies or any other source; and

(4) Any profits or other amounts received from venture capital investments.

(b) The fund shall be used by the board to assist in, and provide incentives for, the production of eligible Hawaii projects that are in compliance with criteria and standards established by the board in accordance with rules adopted by the board pursuant to chapter 91. In particular, the board shall adopt rules to provide for the implementation of the following programs:

(1) A grant program. The board shall adopt rules pursuant to chapter 91 to provide conditions and qualifications for grants. Applications for grants shall be made to the board and shall contain such information as the board shall require by rules adopted pursuant to chapter 91. At a minimum, the applicant shall agree to the following conditions:

(A) The grant shall be used exclusively for eligible Hawaii projects;

(B) The applicant shall have applied for or received all applicable licenses and permits;

(C) The applicant shall comply with applicable federal and state laws prohibiting discrimination against any person on the basis of race, color, national origin, religion, creed, sex, age, or physical handicap;

(D) The applicant shall comply with other requirements as the board may prescribe;

(E) All activities undertaken with funds received shall comply with all applicable federal, state, and county statutes and ordinances;

(F) The applicant shall indemnify and save harmless the State of Hawaii and its officers, agents, and employees from and against any and all claims arising out of or resulting from activities carried out or projects undertaken with funds provided hereunder, and procure sufficient insurance to provide this indemnification if requested to do so by the department;

(G) The applicant shall make available to the board all records the applicant may have relating to the project, to allow the board to monitor the applicant's compliance with the purpose of this chapter; and

(H) The applicant, to the satisfaction of the board, shall establish that sufficient funds are available for the completion of the project for the purpose for which the grant is awarded; and

(2) A venture capital program. The board shall adopt rules pursuant to chapter 91 to provide conditions and qualifications for venture capital investments in eligible Hawaii projects. The program may include a written agreement between the borrower and the board, as the representative of the State, that as consideration for the venture capital investment made under this part, the borrower shall share any royalties, licenses, titles, rights, or any other monetary benefits that may accrue to the borrower pursuant to terms and conditions established by the board by rule pursuant to chapter 91. Venture capital investments may be made on such terms and conditions as the board shall determine to be reasonable, appropriate, and consistent with the purposes and objectives of this part.

§201B-D Inspection of premises and records. The board shall have the right to inspect, at reasonable hours, the plant, physical facilities, equipment, premises, books, and records of any applicant in connection with the processing of a grant to the applicant."

SECTION 55. Part IX of chapter 201, Hawaii Revised Statutes, is repealed.

PART XV

SECTION 56. The purpose of this part is to conform various sections of the Hawaii Revised Statutes to the amendments made under more than one of the previous parts.

SECTION 57. Section 26-18, Hawaii Revised Statutes, is amended to read as follows:

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

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

[~~(b)~~] The following are placed in the department of business, economic development, and tourism for administrative purposes as defined by section 26-35: [~~Aloha Tower development corporation,~~] Hawaii community development authority, Hawaii housing finance and development corporation, [~~high technology development corporation, land use commission, natural energy laboratory of Hawaii authority,~~] 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 58. Section 201-2, Hawaii Revised Statutes, is amended to read as follows:

"§201-2 General objective, functions, and duties of department. It shall be the objective of the department of business, economic development, and tourism to make broad policy determinations with respect to economic development in the State and to stimulate through research and demonstration projects those industrial and economic development efforts that offer the most immediate promise of expanding the economy of the State. The department shall endeavor to gain an understanding of those functions and activities of other governmental agencies and of private agencies that relate to the field of economic development. [~~It shall,~~] The department, at all times, shall encourage initiative and creative thinking in harmony with the objectives of the department.

[The department of business, economic development, and tourism shall have sole jurisdiction over the land use commission under chapter 205, state planning under chapter 225M, and the Hawaii State Planning Act under chapter 226. Due to the inherently interdependent functions of development, planning, and land use, these functions shall not be transferred by executive order, directive, or memorandum, to any other department, nor shall these functions be subject to review or approval by any other department.]"

SECTION 59. Section 201-3, Hawaii Revised Statutes, is amended to read as follows:

"§201-3 Specific research and promotional functions of the department. Without prejudice to its general functions and duties the department of business, economic development, and tourism shall have specific functions in the following areas:

(1) Industrial development. The department shall determine through technical and economic surveys the profit potential of new or expanded industrial undertakings; develop through research projects and other means new and improved industrial products and processes; promote studies and surveys to determine consumer preference as to design and quality and to determine the best methods of packaging, transporting, and marketing the State's industrial products; disseminate information to assist the present industries of the State, to attract new industries to the State, and to encourage capital investment in present and new industries in the State; assist associations of producers and distributors of industrial products to introduce these products to consumers; and make grants or contracts as may be necessary or advisable to accomplish the foregoing;

[(2) Land development. The department shall encourage the most productive use of all land in the State in accordance with a general plan developed by the department; encourage the improvement of land tenure practices on leased private lands; promote an informational program directed to landowners, producers of agricultural and industrial commodities, and the general public regarding the most efficient and most productive use of the lands in the State; and make grants or contracts as may be necessary or advisable to accomplish the foregoing;

~~(3)~~] (2) Credit development. The department shall conduct a continuing study of agricultural and industrial credit needs; encourage the development of additional private and public credit sources for agricultural and industrial enterprises; promote an informational program to acquaint financial institutions with agricultural and industrial credit needs and the potential for agricultural and industrial expansion, and inform producers of agricultural and industrial products as to the manner in which to qualify for loans; and make grants or contracts as may be necessary or advisable to accomplish the foregoing; and

[~~(4)~~] (3) Promotion. The department shall disseminate information developed for or by the department pertaining to economic development to assist present industry in the State, attract new industry and investments to the State, and assist new and emerging industry with good growth potential or prospects in jobs, exports, and new products. The industrial and economic promotional activities of the department may include the use of literature, advertising, demonstrations, displays, market testing, lectures, travel, motion picture and slide films, and other promotional and publicity devices as may be appropriate[;

~~(5)~~ ~~Tourism research and statistics. The department shall maintain a program of research and statistics for the purpose of:~~

~~(A)~~ ~~Measuring and analyzing tourism trends;~~

~~(B)~~ ~~Providing information and research to assist in the development and implementation of state tourism policy;~~

~~(C)~~ ~~Encouraging and arranging for the conduct of tourism research and information development through voluntary means or through contractual services with qualified agencies, firms, or persons; and~~

~~(D)~~ ~~Providing tourism information to policy makers, the public, and the visitor industry. This includes:~~

~~(i)~~ ~~Collecting and publishing visitor-related data including visitor arrivals, visitor characteristics and expenditures;~~

~~(ii)~~ ~~Collecting and publishing hotel-related statistics including the number of units available, occupancy rates, and room rates;~~

~~(iii)~~ ~~Collecting and publishing airline-related data including seat capacity and number of flights;~~

~~(iv)~~ ~~Collecting information and conducting analyses of the economic, social, and physical impacts of tourism on the State;~~

~~(v)~~ Conducting periodic studies of the impact of ongoing marketing programs of the Hawaii tourism authority on Hawaii's tourism industry, employment in Hawaii, state taxes, and the State's lesser known and underutilized destinations; and

~~(vi)~~ ~~Cooperate with the Hawaii tourism authority and provide it with the above information in a timely manner; and~~

~~(6)~~ Self-sufficiency standard. The department shall establish and update biennially a self-sufficiency standard that shall incorporate existing methods of calculation, and shall reflect, at a minimum, costs relating to housing, food, child care, transportation, health care, clothing and household expenses, federal and state tax obligations, family size, children's ages, geography, and the number of household wage earners. The department shall report to the legislature concerning the self-sufficiency standard no later than twenty days prior to the convening of the regular session of 2009, and every odd-numbered year thereafter. The recommendations shall address, among other things, the utilization of any federal funding that may be available for the purposes of establishing and updating the self-sufficiency standard.

~~The department shall be the central agency to coordinate film permit activities in the State~~]."

PART XVI

SECTION 60. The purpose of this part is to provide for the transition of various state agencies and programs that are transferred under parts II, IV, V, VI, VII, VIII, IX, X, XI, XII, XIII, and XIV of this Act.

SECTION 61. (a) All rights, powers, functions, and duties of the agencies, divisions, or programs transferred under parts II, IV, V, VI, VII, VIII, IX, X, XI, XII, XIII, and XIV are transferred to the successor agencies as provided under those parts.

(b) 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; except that an officer or employee whose position is no longer authorized under the General Appropriations Act of 2009 shall not be transferred.

(c) No officer or employee who has been transferred pursuant to subsection (b) and who has 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.

(d) If a position held by an officer or employee having tenure is no longer authorized under the General Appropriations Act of 2009, the movement of an officer or employee to another position shall be subject to the appropriate collective bargaining agreement.

SECTION 62. All rules, policies, procedures, guidelines, and other material adopted or developed by an agency, division, or program transferred under parts II, IV, V, VI, VII, VIII, IX, X, XI, XII, XIII, and XIV shall be transferred to the successor agency and shall remain in full force and effect until amended or repealed by the successor agency.

SECTION 63. All records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, or acquired or held by an agency, division, or program transferred under parts II, IV, V, VI, VII, VIII, IX, X, XI, XII, XIII, and XIV shall be transferred to the successor agency.

SECTION 64. (a) Unless specifically required by this Act, this Act shall not affect the membership or term of any appointed member of a board or other policy-making or advisory body transferred under parts II, IV, V, VI, VII, VIII, IX, X, XI, XII, XIII, and XIV. Such a member shall continue to serve on the board or other body for the member's term without necessity of reappointment.

(b) Subsection (a) shall not apply to any change made by parts II and VII to the ex officio membership of the board of the Aloha tower development corporation and high technology development corporation.

SECTION 65. The legislative reference bureau shall review this Act for the purpose of making recommendations as to the appropriate placement of parts or chapters of the Hawaii Revised Statutes affected by this Act. The legislative reference bureau shall submit its findings and recommendations, accompanied by any necessary proposed legislation, to the legislature by January 1, 2010.

SECTION 66. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

PART XVII

SECTION 67. In codifying the new sections added by section 54 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 68. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 69. This Act shall take effect on July 1, 2009.

HOUSE OF REPRESENTATIVES	H.B. NO.	1260
TWENTY-FIFTH LEGISLATURE, 2009		H.D. 1
STATE OF HAWAII		S.D. 1
		Proposed