HB2302 HD1.DOC

SECTION 1. The purpose of this Act is to establish a central office to coordinate information technology policies throughout state government and to improve information technology performance and efficiency. Increased information technology efficiency across state departments and agencies will permit the State to benefit from substantial cost savings by implementing a centrally coordinated planning and implementation process for common information technology systems, software, and hardware. To serve this purpose, this Act establishes the office of information technology and position of chief information officer within the office of the lieutenant governor, and creates a shared services technology special fund.

Participating state departments and agencies shall contribute to the shared services technology fund so that the fund may take advantage of bulk purchases and coordinated multi‑department and statewide contracts and agreements to generate overall cost reductions through economies of scale and decreased administrative burdens. The chief information officer shall oversee the fund and shall administer shared services including technology contracts; project and procurement management; computer security administration; voice and data communications and messaging services, software, hardware, infrastructure and support; and data center and disaster recovery facilities management and services.

SECTION 2. Section 26-1, Hawaii Revised Statutes, is amended to read as follows:

"§26-1 Office of the lieutenant governor. (a) Except as otherwise provided by law, the lieutenant governor is designated the secretary of state for intergovernmental relations and shall perform the duties and functions heretofore exercised by the secretary of Hawaii. The duties and functions shall include[,] but not be limited to[,] recordation of all legislative and gubernatorial acts, certification of state documents, and maintenance of an official file of rules adopted by state departments as provided in chapter 91. The lieutenant governor may employ staff as necessary without regard to chapter 76.

(b) The lieutenant governor, with the approval of the governor, may designate some other officer of the government of the State to authenticate documents on behalf of the lieutenant governor during the lieutenant governor's temporary absence outside the [~~State~~] state or during the lieutenant governor's illness whenever the documents require the signature of the lieutenant governor. The person shall affix the person's own signature to the document with the words, "for the lieutenant governor" following and the signature shall be deemed to satisfy the requirement of the lieutenant governor's signature on the document. The designation and approval shall be in writing and shall be filed in the office of the governor and a copy thereof, certified by the governor, shall be filed with the public archives. The person so designated shall serve without additional compensation and the lieutenant governor shall be responsible and liable on the lieutenant governor's official bond for all acts done by the person so designated in the performance of the duties on behalf of the lieutenant governor.

(c) Nothing in this section shall be construed to authorize the person to exercise and discharge the powers and duties of the office of the governor as provided by the first paragraph of Article V, section 4, of the Hawaii Constitution [~~of the State~~]. The person shall not be authorized to exercise any powers whenever a successor to the lieutenant governor assumes the duties of the lieutenant governor pursuant to Article V, section 4, of the Hawaii Constitution.

(d) In addition to the functions and duties provided by law, the lieutenant governor shall assume administrative responsibility for the office of information practices.

(e) The office of the lieutenant governor shall provide centralized computer information management and processing services; coordinate the use of all information processing equipment, software, facilities, and services for all departments and agencies in the executive branch of the State; and shall consult and provide support services in the use of information processing and management technologies to improve the efficiency, effectiveness, and productivity of state government programs.

There is hereby created within the office of the lieutenant governor the office of information technology to be headed by the chief information officer, who shall be appointed by the lieutenant governor and shall be exempt from chapter 76, to carry out the purposes of this subsection.

The salary of the chief information officer shall be equal to ninety-five per cent of the director of commerce and consumer affairs' salary. The chief information officer shall:

(1) Serve as the State's chief information officer and shall report directly to the lieutenant governor;

(2) Oversee the development and implementation of a standardized information technology policy for all departments and agencies of the executive branch of the State;

(3) Be, by reason of education and experience, qualified to carry out the information and executive functions of the position created by this subsection;

(4) Manage and expend the shared services technology special fund created by this subsection;

(5) Make rules, pursuant to chapter 91, for the administration of this subsection and the functions of the chief information officer; and

(6) Select and hire additional staff required to carry out the purposes of this subsection, subject to chapter 76.

There is created in the state treasury a special fund to be known as the shared services technology special fund to be administered and expended by the chief information officer as specified in this subsection. Five per cent of the receipts collected from special funds pursuant to section 36-27 and five per cent of all revenues, fees, and fines deposited into the compliance resolution fund under subsection 26-9(o) shall be deposited into the shared services technology special fund. Any law to the contrary notwithstanding, the moneys in the fund shall be used to fund the operations of the office of information technology, including the employment and training of staff and any other activities to carry out the purposes of this subsection as the chief information officer deems necessary.

[~~(e)~~] (f) The governor shall identify and direct other duties as necessary to the lieutenant governor."

SECTION 3. Section 26-6, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The department shall:

(1) Preaudit and conduct after-the-fact audits of the financial accounts of all state departments to determine the legality of expenditures and the accuracy of accounts;

(2) Report to the governor and to each regular session of the legislature as to the finances of each department of the State;

(3) Administer the state risk management program;

(4) Establish and manage motor pools;

(5) Manage the preservation and disposal of all records of the State;

(6) Undertake the program of centralized engineering and office leasing services, including operation and maintenance of public buildings, for departments of the State;

(7) Undertake the functions of the state surveyor;

(8) Establish accounting and internal control systems;

[~~(9)~~ Provide centralized computer information management and processing services, coordination in the use of all information processing equipment, software, facilities, and services in the executive branch of the State, and consultation and support services in the use of information processing and management technologies to improve the efficiency, effectiveness, and productivity of state government programs;] and

[~~(10)~~] (9) Establish, coordinate, and manage a program to provide a means for public access to public information and develop and operate an information network in conjunction with its overall plans for establishing a communication backbone for state government."

SECTION 4. Section 26-9, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (c) to read:

"(c) The board of acupuncture, board of public accountancy, board of barbering and cosmetology, boxing commission, board of chiropractic examiners, contractors license board, board of dental examiners, board of electricians and plumbers, elevator mechanics licensing board, board of professional engineers, architects, surveyors, and landscape architects, board of massage therapy, Hawaii medical board, motor vehicle industry licensing board, motor vehicle repair industry board, board of naturopathic medicine, board of nursing, board of examiners in optometry, pest control board, board of pharmacy, board of physical therapy, board of psychology, board of private detectives and guards, real estate commission, board of veterinary examiners, board of speech pathology and audiology, and any board, commission, program, or entity created pursuant to or specified by statute in furtherance of the purpose of this section including but not limited to [~~section 26H-4, or~~] chapters 484, 514A, 514B, and 514E shall be placed within the department of commerce and consumer affairs for administrative purposes."

2. By amending subsection (f) to read:

"(f) The director of commerce and consumer affairs may appoint a hearings officer or officers not subject to chapter 76 to hear and decide any case or controversy regarding licenses and the application and enforcement of rules involving any of the boards, commissions, or regulatory programs within the department of commerce and consumer affairs. The hearings officer or officers shall have power to issue subpoenas, administer oaths, hear testimony, find facts, and make conclusions of law and a recommended decision; provided that the conclusions and decisions shall be subject to review and redetermination by the officer, board, or commission [~~which~~] that would have heard the case in the first instance in the absence of a hearings officer. The review shall be conducted in accordance with chapter 91."

3. By amending subsection (o) to read:

"(o) Every person licensed under any chapter within the jurisdiction of the department of commerce and consumer affairs and every person licensed subject to chapter 485A or registered under chapter 467B shall pay upon issuance of a license, permit, certificate, or registration a fee and a subsequent annual fee to be determined by the director and adjusted from time to time to ensure that the proceeds, together with all other fines, income, and penalties collected under this section, do not surpass the annual operating costs of conducting compliance resolution activities required under this section. The fees may be collected biennially or pursuant to rules adopted under chapter 91, and shall be deposited into the special fund established under this subsection. Every filing pursuant to chapter 514E or section 485A-202(a)(26) shall be assessed, upon initial filing and at each renewal period in which a renewal is required, a fee that shall be prescribed by rules adopted under chapter 91, and that shall be deposited into the special fund established under this subsection. Any unpaid fee shall be paid by the licensed person, upon application for renewal, restoration, reactivation, or reinstatement of a license, and by the person responsible for the renewal, restoration, reactivation, or reinstatement of a license, upon the application for renewal, restoration, reactivation, or reinstatement of the license. If the fees are not paid, the director may deny renewal, restoration, reactivation, or reinstatement of the license. The director may establish, increase, decrease, or repeal the fees when necessary pursuant to rules adopted under chapter 91. The director may also increase or decrease the fees pursuant to section 92-28.

There is created in the state treasury a special fund to be known as the compliance resolution fund to be expended by the director's designated representatives as provided by this subsection. Notwithstanding any law to the contrary, all revenues, fees, and fines collected by the department shall be deposited into the compliance resolution fund. Unencumbered balances existing on June 30, 1999, in the cable television fund under chapter 440G, the division of consumer advocacy fund under chapter 269, the financial institution examiners' revolving fund, section 412:2-109, the special handling fund, section 414‑13, and unencumbered balances existing on June 30, 2002, in the insurance regulation fund, section 431:2-215, shall be deposited into the compliance resolution fund. This provision shall not apply to the drivers education fund underwriters fee, sections 431:10C-115 and 431:10G-107, insurance premium taxes and revenues, revenues of the workers' compensation special compensation fund, section 386-151, the captive insurance administrative fund, section 431:19-101.8, the insurance commissioner's education and training fund, section 431:2-214, the medical malpractice patients' compensation fund as administered under section 5 of Act 232, Session Laws of Hawaii 1984, and fees collected for deposit in the office of consumer protection restitution fund, section 487-14, the real estate appraisers fund, section 466K-1, the real estate recovery fund, section 467-16, the real estate education fund, section 467‑19, the contractors recovery fund, section 444-26, the contractors education fund, section 444-29, and the condominium education trust fund, section 514B-71. Any law to the contrary notwithstanding, the director may use the moneys in the fund to employ, without regard to chapter 76, hearings officers and attorneys. All other employees may be employed in accordance with chapter 76. Any law to the contrary notwithstanding, the moneys in the fund shall be used to fund the operations of the department. The moneys in the fund may be used to train personnel as the director deems necessary and for any other activity related to compliance resolution.

As used in this subsection, unless otherwise required by the context, "compliance resolution" means a determination of whether:

(1) Any licensee or applicant under any chapter subject to the jurisdiction of the department of commerce and consumer affairs has complied with that chapter;

(2) Any person subject to chapter 485A has complied with that chapter;

(3) Any person submitting any filing required by chapter 514E or section 485A-202(a)(26) has complied with chapter 514E or section 485A-202(a)(26);

(4) Any person has complied with the prohibitions against unfair and deceptive acts or practices in trade or commerce; [or]

(5) Any person subject to chapter 467B has complied with that chapter; or

(6) Any department or agency of the State is in compliance with the information technology policy established pursuant to section 26-1(e);

and includes work involved in or supporting the above functions, licensing[,] or registration of individuals or companies regulated by the department, consumer protection, bringing departments or agencies of the State into compliance with information technology policies, and other activities of the department.

The director shall prepare and submit an annual report to the governor and the legislature on the use of the compliance resolution fund. The report shall describe expenditures made from the fund including non-payroll operating expenses."

SECTION 5. Section 27-41, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The duties of the special advisor shall include but not be limited to:

(1) Developing, coordinating, and implementing short- and long-range state policies and directions to enhance the development of high technology industries in Hawaii;

(2) Coordinating all state high technology agencies, except the office of information technology, while developing a plan for reorganization or consolidation of these agencies in the interests of greater efficiency and cost effectiveness;

(3) Advising the private sector in the development of high technology activities and resources and providing technical or other assistance to private industry upon request;

(4) Creating, disseminating, and updating a listing of all high technology assistance programs in the [~~State~~] state and where they can be reached;

(5) Pursuing appropriate public-private sector business partnerships;

(6) Coordinating the State's promotion and marketing of the high technology industry, including a review of current marketing efforts;

(7) Arranging for the conduct of research through contractual services with the University of Hawaii or any agency or other qualified persons;

(8) Encouraging the development of educational, training, and career programs in high technology industries; and

(9) Performing other necessary or desirable functions to facilitate the intent of this section."

SECTION 6. Section 36-27, Hawaii Revised Statutes, is amended to read as follows:

"§36-27 Transfers from special funds for central service expenses. (a) Except as provided in this section, and notwithstanding any other law to the contrary, from time to time, the director of finance, for the purpose of defraying the prorated estimate of central service expenses of government in relation to all special funds, except the:

(1) Special out-of-school time instructional program fund under section 302A-1310;

(2) School cafeteria special funds of the department of education;

(3) Special funds of the University of Hawaii;

(4) State educational facilities improvement special fund;

(5) Convention center enterprise special fund under section 201B-8;

(6) Special funds established by section 206E-6;

(7) Housing loan program revenue bond special fund;

(8) Housing project bond special fund;

(9) Aloha Tower fund created by section 206J-17;

(10) Funds of the employees' retirement system created by section 88-109;

(11) Unemployment compensation fund established under section 383-121;

(12) Hawaii hurricane relief fund established under chapter 431P;

(13) Hawaii health systems corporation special funds and the subaccounts of its regional system boards;

(14) Tourism special fund established under section 201B‑11;

(15) Universal service fund established under [~~chapter 269;~~] section 269-42;

(16) Emergency and budget reserve fund under section 328L‑3;

(17) Public schools special fees and charges fund under section 302A-1130[~~(f)~~];

(18) Sport fish special fund under section 187A-9.5;

(19) Glass advance disposal fee [~~special fund~~] established by section 342G-82;

(20) Center for nursing special fund under section 304A‑2163;

(21) Passenger facility charge special fund established by section 261-5.5;

(22) Court interpreting services revolving fund under section 607-1.5;

(23) Hawaii cancer research special fund;

(24) Community health centers special fund;

(25) Emergency medical services special fund; [~~and~~]

(26) Rental motor vehicle customer facility charge special fund established under section 261-5.6[,]; and

(27) Shared services technology special fund under section 26‑1(e),

shall deduct five per cent of all receipts of all special funds, which deduction shall be transferred to the general fund of the State and become general realizations of the State. All officers of the State and other persons having power to allocate or disburse any special funds shall cooperate with the director in effecting these transfers. To determine the proper revenue base upon which the central service assessment is to be calculated, the director shall adopt rules pursuant to chapter 91 for the purpose of suspending or limiting the application of the central service assessment of any fund. No later than twenty days prior to the convening of each regular session of the legislature, the director shall report all central service assessments made during the preceding fiscal year.

(b) Notwithstanding any other law to the contrary, the director shall deposit five per cent of all moneys collected pursuant to subsection (a) into the shared services technology special fund established pursuant to section 26-1(e)."

SECTION 7. Section 36-30, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

"(a) Each special fund, except the:

(1) Transportation use special fund established by section 261D‑1;

(2) Special out-of-school time instructional program fund under section 302A-1310;

(3) School cafeteria special funds of the department of education;

(4) Special funds of the University of Hawaii;

(5) State educational facilities improvement special fund;

(6) Special funds established by section 206E-6;

(7) Aloha Tower fund created by section 206J-17;

(8) Funds of the employees' retirement system created by section 88-109;

(9) Unemployment compensation fund established under section 383-121;

(10) Hawaii hurricane relief fund established under section 431P‑2;

(11) Convention [[]center[]] enterprise special fund established under section 201B-8;

(12) Hawaii health systems corporation special funds and the subaccounts of its regional system boards;

(13) Tourism special fund established under section 201B‑11;

(14) Universal service fund established under [~~chapter 269;~~] section 269-42;

(15) Emergency and budget reserve fund under section 328L‑3;

(16) Public schools special fees and charges fund under section 302A-1130[~~(f)~~];

(17) Sport fish special fund under section 187A-9.5;

(18) Center for nursing special fund under section 304A‑2163;

(19) Passenger facility charge special fund established by section 261-5.5;

(20) Court interpreting services revolving fund under section 607-1.5;

(21) Hawaii cancer research special fund;

(22) Community health centers special fund;

(23) Emergency medical services special fund; [~~and~~]

(24) Rental motor vehicle customer facility charge special fund established under section 261-5.6[,]; and

(25) Shared services technology special fund under section 26-1(e),

shall be responsible for its pro rata share of the administrative expenses incurred by the department responsible for the operations supported by the special fund concerned.

(b) Administrative expenses shall include:

(1) Salaries;

(2) Maintenance of buildings and grounds;

(3) Utilities; [~~and~~]

(4) General office expenses[.]; and

(5) Implementation of information technology policies developed by the chief information officer pursuant to section 26-1(e)."

SECTION 8. All rights, powers, functions, and duties of the department of accounting and general services relating to the provision of centralized computer information management and processing services, coordination in the use of all information processing equipment, software, facilities, and services in the executive branch of the State, and consultation and support services in the use of information processing and management technologies are transferred to the office of information technology established pursuant to section 26-9(p), Hawaii Revised Statutes.

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; provided that any relevant functions performed by the comptroller shall be transferred to the chief information officer and the position of comptroller shall remain within the department of accounting and general services.

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

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

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

SECTION 9. All appropriations, records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by the department of accounting and general services relating to the functions transferred to the department of commerce and consumer affairs shall be transferred with the functions to which they relate.

SECTION 10. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 11. This Act shall take effect on July 1, 2010; provided that the amendments made to sections 36-27 and 36-30, Hawaii Revised Statutes, by this Act shall not be repealed when those sections are reenacted on June 30, 2015, by section 34 of Act 79, Session Laws of Hawaii 2009.

HOUSE OF REPRESENTATIVES	H.B. NO.	2302
TWENTY-FIFTH LEGISLATURE, 2010		H.D. 1
STATE OF HAWAII