HOUSE OF REPRESENTATIVES	H.B. NO.	2690
TWENTY-FIFTH LEGISLATURE, 2010		S.D. 1
STATE OF HAWAII		Proposed

A BILL FOR AN ACT

RELATING TO GOVERNMENT.

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

PART I

     SECTION 1.  Chapter 28, Hawaii Revised Statutes, is amended as follows:

     1.  By repealing sections 28-7.5 and 28-8, Hawaii Revised Statutes.

["[§28-7.5]  Administrative services manager; appointment and duties.  The attorney general may appoint and, at the attorney general's pleasure, dismiss an administrative services manager of the department of the attorney general who shall generally assist the attorney general, as the attorney general may require, in the performance of the administrative and managerial duties of the attorney general that are not required to be performed by an attorney.  The administrative services manager shall be appointed without regard to chapter 76, need not be an attorney, and shall hold no other public or private office or employment.  Section 26-53 shall not apply to the administrative services manager of the department of the attorney general.

§28-8  First deputy attorney general; other deputies.  (a)  The attorney general shall appoint, and at the attorney general's pleasure remove, a first deputy attorney general and other deputies and law clerks as the exigencies of the public service may require, and shall be responsible for all of the acts of the first deputy attorney general, other deputies, and law clerks.  They shall act under the direction of the attorney general and shall perform duties as the attorney general may require regardless of the source of funding for their compensation and notwithstanding any law to the contrary, except that the attorney general shall not require the performance of duties that would violate the terms of an applicable funding source or that would be in contravention of a federal requirement, restriction, or condition.  The first deputy attorney general and other deputies, subject to the attorney general's directions, may perform or exercise any and all duties or powers by law required of or conferred upon the attorney general.

(b)  The attorney general may appoint and, by contract, retain the services of special deputies to perform such duties and exercise such powers as the attorney general may specify in their several appointments.  The special deputies shall serve at the pleasure of the attorney general.  At the option of the attorney general, special deputies may be compensated on a fixed-price basis, an hourly rate basis, with or without a fixed cap, or, if a special deputy has been appointed to represent the State in an action by the State pursuant to section 661-10, through a contingent fee arrangement to be specified in the contract and payable out of all sums the special deputy recovers for the State by judgment, order, or settlement."]

     2.  By repealing section 28-8.5, Hawaii Revised Statutes.

["[§28-8.5]  Special assistant to the attorney general; appointment and duties; secretary.  The attorney general may appoint, and at the attorney general's pleasure dismiss, a special assistant to the attorney general who shall generally assist the attorney general, as the attorney general may require, in the initiation, direction, or monitoring of administrative or managerial special projects that the attorney general has determined to be necessary.  In addition, the special assistant shall, as the attorney general may direct, serve as the attorney general's representative to, and monitor and apprise the attorney general of the activities of, the various national, regional, state, and local organizations and committees in which the attorney general has membership, participation, or interest.  The special assistant to the attorney general shall be appointed without regard to chapter 76, need not be an attorney, and shall hold no other public or private office or employment.  Section 26-53 shall not be applicable to the special assistant to the attorney general.  The attorney general may also appoint, without regard to chapter 76, one secretary for the special assistant to the attorney general."]

PART II

     SECTION 2.  The purpose of this part is to assign television and film industry activities to the Hawaii tourism authority.

     SECTION 3.  Chapter 201B, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part    .  HAWAII FILM OFFICE

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

     "Applicant" means a person who proposes to make a motion picture, television show, television commercial, or other visually recorded production at one or more sites on state or county lands.

     "Authority" means the Hawaii tourism authority.

     "Office" means the Hawaii film office.

     §201B-B Hawaii film office; consolidated film permit processing.  (a)  There is established in the authority a Hawaii film office that shall be the central agency to coordinate film permit activities in the State.  The office shall consult with state and county agencies to identify sites that can be used for making visually recorded productions under terms and conditions as may be determined by the state or county agency having jurisdiction over the sites.

     (b)  The office may accept an application from any person who proposes to make a motion picture, television show, television commercial, or other visually recorded production at one or more sites on state or county lands, whether or not set aside under section 171-11.

     (c)  The applicant shall identify the sites to be covered by the permit and provide other information as may be required by the office.

     (d)  The office may approve and issue a permit to film at any of the sites identified by the appropriate state or county agency under subsection (a).  If any site requested for use by the applicant is not identified in accordance with subsection (a), the office shall consult with the appropriate state or county agency having jurisdiction over the site to obtain a permit.  If the matter of a permit cannot be resolved in this manner, the office shall refer the application to the appropriate state or county agency to obtain a permit.

     (e)  The office is authorized to make changes to, and extensions of, any approved permits so long as the changes and extensions do not conflict with the policies, terms, and conditions set forth by the agency having jurisdiction over the site in question.

     (f)  Nothing in this section shall be construed as waiving the authority of any county or the authority of transportation of the State to require a person to obtain a permit from the authority or county where the production takes place on or from a public highway.

     (g)  A vessel engaged in temporary use for film production purposes in accordance with a film permit issued by the office shall not be considered to be a "commercial vessel" within the meaning of section 200-9, 200-10, or 200-39; provided that:

     (1)  The period of temporary use does not exceed fourteen hours per day, five days per week, excluding weekends, and for a period not to exceed thirty calendar days; and

     (2)  The office may make allowances to include weekends for film production purposes due to inclement weather conditions during the weekday period.

§201B-C  Hawaii film office special fund.  (a)  There is established in the state treasury the Hawaii film office special fund, into which shall be deposited:

     (1)  Appropriations by the legislature;

     (2)  Rents from usage of the Hawaii film studio operated by the Hawaii film office;

     (3)  Fees collected by the authority for processing taxpayer letters pursuant to section 235‑17;

     (4)  Any other fees for processing certifications for tax credits authorized by the legislature;

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

     (6)  Grants provided by governmental agencies or any other source.

     (b)  Moneys in the fund shall be used for the operations of the Hawaii film office, including the costs of processing taxpayer letters pursuant to section 235‑17.

     (c)  For purposes of this section, the Hawaii tourism authority shall report annually to the legislature, beginning January 1, 2011, on the deposits, appropriations, and balance in the Hawaii film office special fund."

     SECTION 4.  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:

         (A)  Determine through technical and economic surveys the profit potential of new or expanded industrial undertakings;

         (B)  Develop through research projects and other means new and improved industrial products and processes;

         (C)  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;

         (D)  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;

         (E)  Assist associations of producers and distributors of industrial products to introduce these products to consumers; and

         (F)  Make grants or contracts as may be necessary or advisable to accomplish the foregoing;

     (2)  Land development.  The department shall:

         (A)  Encourage the most productive use of all land in the State in accordance with a general plan developed by the department;

          (B)  Encourage the improvement of land tenure practices on leased private lands;

         (C)  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

         (D)  Make grants or contracts as may be necessary or advisable to accomplish the foregoing;

     (3)  Credit development.  The department shall:

         (A)  Conduct a continuing study of agricultural and industrial credit needs;

         (B)  Encourage the development of additional private and public credit sources for agricultural and industrial enterprises;

         (C)  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

         (D)  Make grants or contracts as may be necessary or advisable to accomplish the foregoing;

     (4)  Promotion.  The department shall:

         (A)  Disseminate information developed for or by the department pertaining to economic development to assist present industry in the State;

         (B)  Attract new industry and investments to the State; and

         (C)  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; and

     (5)  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 use 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.]"

     SECTION 5.  Section 235-17, Hawaii Revised Statutes, is amended as follows:

     1.  By amending subsection (f) to read:

     "(f)  To receive the tax credit, the taxpayer shall first prequalify the production for the credit by registering with the [department of business, economic development, and tourism] Hawaii film office during the development or preproduction stage.  Failure to comply with this provision may constitute a waiver of the right to claim the credit."

     2.  By amending subsections (h) and (i) to read:

     "(h)  Every taxpayer claiming a tax credit under this section for a qualified production shall, no later than ninety days following the end of each taxable year in which qualified production costs were expended, submit a written, sworn statement to the [department of business, economic development, and tourism,] Hawaii film office, identifying:

     (1)  All qualified production costs as provided by subsection (a), if any, incurred in the previous taxable year;

     (2)  The amount of tax credits claimed pursuant to this section, if any, in the previous taxable year; and

     (3)  The number of total hires versus the number of local hires by category (i.e., department) and by county.

     (i)  The [department of business, economic development, and tourism] Hawaii film office shall:

     (1)  Maintain records of the names of the taxpayers and qualified productions thereof claiming the tax credits under subsection (a);

     (2)  Obtain and total the aggregate amounts of all qualified production costs per qualified production and per qualified production per taxable year; and

     (3)  Provide a letter to the director of taxation specifying the amount of the tax credit per qualified production for each taxable year that a tax credit is claimed and the cumulative amount of the tax credit for all years claimed.

     Upon each determination required under this subsection, the [department of business, economic development, and tourism] Hawaii film office shall issue a letter to the taxpayer, regarding the qualified production, specifying the qualified production costs and the tax credit amount qualified for in each taxable year a tax credit is claimed.  The taxpayer for each qualified production shall file the letter with the taxpayer's tax return for the qualified production to the department of taxation.  Notwithstanding the authority of the [department of business, economic development, and tourism] Hawaii film office under this section, the director of taxation may audit and adjust the tax credit amount to conform to the information filed by the taxpayer."

     3.  By amending the definition of "qualified production costs" in subsection (1) to read:

     ""Qualified production costs" means the costs incurred by a qualified production within the State that are subject to the general excise tax under chapter 237 or income tax under this chapter and that have not been financed by any investments for which a credit was or will be claimed pursuant to section 235‑110.9.  Qualified production costs include but are not limited to:

     (1)  Costs incurred during preproduction such as location scouting and related services;

     (2)  Costs of set construction and operations, purchases or rentals of wardrobe, props, accessories, food, office supplies, transportation, equipment, and related services;

     (3)  Wages or salaries of cast, crew, and musicians;

     (4)  Costs of photography, sound synchronization, lighting, and related services;

     (5)  Costs of editing, visual effects, music, other post-production, and related services;

     (6)  Rentals and fees for use of local facilities and locations;

     (7)  Rentals of vehicles and lodging for cast and crew;

     (8)  Airfare for flights to or from Hawaii, and interisland flights;

     (9)  Insurance and bonding;

    (10)  Shipping of equipment and supplies to or from Hawaii, and interisland shipments; and

    (11)  Other direct production costs specified by the department in consultation with the [department of business, economic development, and tourism.] Hawaii film office."

     SECTION 6.  Section 201-14, Hawaii Revised Statutes, is repealed.

["§201-14  Consolidated film permit processing.  (a)  The department shall consult with state and county agencies in order to identify sites that can be used for making visually recorded productions under terms and conditions as may be determined by the state or county agency having jurisdiction over the sites.

(b)  The department may accept an application from any person who proposes to make a motion picture, television show, television commercial, or other visually recorded production at one or more sites on state or county lands, whether or not set aside under section 171-11.

(c)  The applicant shall identify the sites to be covered by the permit and provide other information as may be required by the department.

(d)  The department may approve and issue a permit to film at any of the sites identified by the appropriate state or county agency under subsection (a).  If any site requested for use by the applicant is not identified under subsection (a), the department shall consult with the appropriate state or county agency having jurisdiction over the site to obtain a permit.  If the matter of a permit cannot be resolved in this manner, the department shall refer the application to the appropriate state or county agency to obtain a permit.

(e)  The department is authorized to make changes to, and extensions of, any approved permits so long as the changes and extensions do not conflict with the policies, terms, and conditions set forth by the agency having jurisdiction over the site in question.

(f)  The department may establish memoranda of agreement or adopt rules to implement the intent and purposes of this section.

(g)  Nothing in this section shall be construed as waiving the authority of any county or the department of transportation of the State to require a person to obtain a permit from the department or county where the production takes place on or from a public highway.

(h)  A vessel engaged in temporary use for film production purposes in accordance with a film permit issued by the department shall not be considered to be a "commercial vessel" within the meaning of section 200-9, 200-10, or 200-39; provided that:

(1) The period of temporary use does not exceed fourteen hours per day, five days per week, excluding weekends, and for a period not to exceed thirty calendar days; and

(2) The department may make allowances to include weekends for film production purposes due to inclement weather conditions during the weekday period."]

     SECTION 7.  Part IX of chapter 201, Hawaii Revised Statutes, is repealed.

     SECTION 8.  All rights, powers, functions, and duties related to Hawaii television and film development are transferred from the department of business, economic development, and tourism to the Hawaii tourism authority.

     All officers and employees whose functions are transferred by this part shall be transferred with their functions and shall continue to perform their regular duties upon their transfer; provided that the transferred officers and employees shall be subject to the provisions of section 201B-3(7), Hawaii Revised Statutes.

     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 part; provided that no break in service has occurred.

     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, memoranda of agreement in existence prior to the effective date of this Act, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by the department of business, economic development, and tourism relating to the functions transferred to the department of Hawaii tourism authority shall be transferred with the functions to which they relate.

PART III

     SECTION 10.  Act 51, Session Laws of Hawaii 2004, is amended by amending section 12 to read as follows:

     "SECTION 12.  The department of education, with the invited participation of the exclusive bargaining agent of educational officers of the department of education, shall propose salary schedules and other terms and conditions of employment of principals and vice principals based upon a [twelve-month] ten‑month term of service.  The department of education shall submit their findings to the legislature no later than twenty days prior to the convening of the regular session of 2005."

     SECTION 11.  Section 302A-636, Hawaii Revised Statutes, is amended to read as follows:

"§302A-636  Cafeteria managers.  All cafeteria managers employed in the department shall be employed and have their salaries fixed in accordance with chapter 76 and the appropriate collective bargaining agreement, executive order, executive directive, or rule, and the monthly rates of basic compensation so determined shall be payable over a [twelve-month] ten-month period without proration or deduction for periods when school is not in session.  Cafeteria managers shall have the same vacation and sick leave allowances as school teachers and principals."

     SECTION 12.  Section 302A-637, Hawaii Revised Statutes, is amended to read as follows:

"§302A-637  Cafeteria workers.  All cafeteria workers employed in the department shall be employed and have their compensation adjusted in accordance with chapter 76 and the appropriate collective bargaining agreement, executive order, executive directive, or rule, and the monthly rates of basic compensation so determined shall be payable for employment over a [twelve-month] ten-month period.  All cafeteria workers shall be employed on a full-time basis, except that a limited number of part-time workers may be employed by the department.  No cafeteria worker employed on a part-time basis shall work less than twenty hours per week.  The department shall establish a schedule, based on factors that determine the need for part-time workers, fixing the number of part-time workers that may be employed by the department."

PART IV

     SECTION 13.  Section 87A-17, Hawaii Revised Statutes, is amended to read as follows:

"[[]§87A-17[]]  Group life insurance benefits or group life insurance program.  The board may provide benefits under a group life insurance benefits program or group life insurance program to employees[.]; provided that the program is at no cost to the employers and the State and counties shall not make any contributions for the program."

     SECTION 14.  Section 87A-31, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  The fund may be used to provide group life insurance benefits to employees [to the extent that contributions are provided for group life insurance benefits in sections 87A-32 and 87A-37.]; provided that the group life insurance program shall be at no cost to the employers and the State and counties shall make no contributions for the program."

     SECTION 15.  Section 87A-32, Hawaii Revised Statutes, is amended to read as follows:

"[[]§87A-32[]]  State and county contributions; active employees.  [(a)]  The State, through the department of budget and finance, and the counties, through their respective departments of finance, shall pay to the fund a monthly contribution equal to the amount established under chapter 89C or specified in the applicable public sector collective bargaining agreements, whichever is appropriate, for each of their respective employee-beneficiaries and employee-beneficiaries with dependent-beneficiaries, which shall be used toward the payment of costs of a health benefits plan; provided that:

     (1)  The monthly contribution shall be a specified dollar amount;

     (2)  The monthly contribution shall not exceed the actual cost of a health benefits plan;

     (3)  If both husband and wife are employee-beneficiaries, the total contribution by the State or the county shall not exceed the monthly contribution for a family plan; and

     (4)  If the State or any of the counties establish cafeteria plans in accordance with Title 26, United States Code section 125, the Internal Revenue Code of 1986, as amended, and part II of chapter 78, the monthly contribution for those employee-beneficiaries who participate in a cafeteria plan shall be made through the cafeteria plan, and the payments made by the State or counties shall include their respective contributions to the fund and their employee-beneficiary's share of the cost of the employee-beneficiary's health benefits plan.

     [(b)  The State, through the department of budget and finance, and the counties, through their respective departments of finance, shall pay to the fund a monthly contribution equal to the amount established under chapter 89C or specified in the applicable public sector collective bargaining agreement, whichever is applicable, for each of their respective employees, to be used toward the payment of group life insurance benefits for each employee.]"

     SECTION 16.  Section 87A-37, Hawaii Revised Statutes, is amended to read as follows:

"[[]§87A-37[]  Group] Employee contributions; group life insurance benefits plans [for retired employees; contributions].  [(a)  The State, through the department of budget and finance, and the counties, through their respective departments of finance, shall pay to the fund a base monthly contribution as set forth in subsection (b) for each retired employee enrolled in the fund's group life insurance benefits plan under section 87A-34, 87A-35, and 87A-36.

(b)  Effective July 1, 2003, there is established a base monthly contribution of $4.16 for each retired employee enrolled in a group life insurance plan; provided that the monthly contribution shall not exceed the actual cost of the group life insurance benefits plan.  The base composite monthly contribution shall be adjusted annually beginning July 1, 2004.  The adjusted base composite monthly contribution for each new plan year shall be calculated by increasing or decreasing the base composite monthly contribution in effect through the end of the previous plan year by the percentage increase or decrease in the medicare part B premium rate for those years.  The percentage shall be calculated by dividing the medicare part B premium rate in effect at the beginning of the new plan year by the rate in effect through the end of the previous plan year.

As used in this subsection, "medicare part B premium rate" means the rate published in the Federal Register each year on November 1 or on the business day closest to November 1 of each year after the medicare part B premium rate has been established by the Secretary of Health and Human Services and approved by the United States Congress.] During the period the group life insurance benefits plans are in effect, the employee, if allowed by law, shall authorize the employee's contribution to be withheld and transmitted to the fund monthly by the comptroller, employees' retirement system, or finance officer who disburses the employee's compensation, pension, or retirement pay.  If an employee-beneficiary's monthly contribution to the fund is not withheld and transmitted to the fund, the employee shall pay the monthly contribution directly to the board's designated carrier or third-party administrator as specified by the board."

PART V

     SECTION 17.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 18.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 19.  This Act shall take effect on July 1, 2010.

Report Title:

State Operations; Attorney General Positions; Television and Film Functions of the State; Principals and Vice Principal Contracts; Cafeteria Managers and Workers; Employer-Union Health Benefits Trust Fund

Description:

Part I repeals certain statutorily established positions within the department of the attorney general; Part II transfers the television and film industry activities and responsibilities and special fund under the department of business, economic development, and tourism to the Hawaii tourism authority and establishes the Hawaii film office under the authority; authorizes the Hawaii film office to administer the tax credits under section 235-17, Hawaii Revised Statutes; deletes unnecessary provisions; part III changes the terms of service for principals, vice principals, cafeteria managers, and workers from 12 months to 10 months; part IV suspends employer contributions for active and retiree life insurance premiums beginning July 1, 2010.  (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.