SB486.DOC

SECTION 1. The legislature finds that Act 388, Session Laws of Hawaii 1989, which established the Hawaii historic preservation special fund, set forth a set of guiding principles that are even more compelling and relevant today than they were in 1989:

"The legislature . . . finds that as we begin to compete economically in the Pacific Basin, we are beginning to realize that much of our strength lies in our own uniqueness – those factors that provide us with a distinct advantage over our competitors. . . .

The legislature further finds that another distinct advantage that has not been fully tapped is our unique historic heritage. The preservation and enhancement of this valuable resource can provide an additional attraction to our visitors in addition to our beautiful climate, environment, and people. But more important, the preservation of special elements of our past can instill a distinct pride in our people and serve as a reminder, through our historic buildings, documents, photographs, and sites, that we are indeed a unique people and that we have a deep appreciation and sense of our place.

The purpose of this Act is to establish a Hawaii historic preservation special fund to enhance and preserve elements of our past that should be integrated into our daily living."

In the current economic climate, the legislature finds that it is difficult to pursue new financial resources, including private and philanthropic grants, to ensure the preservation of Hawaii's heritage assets without a corresponding commitment on the part of the State to provide an underlying baseline of state funding support.

The purpose of this Act is to expand the uses of the Hawaii historic preservation special fund and to capitalize on accelerated construction programming proposed by the administration to assist in the restoration and preservation of such heritage assets as the Bernice Pauahi Bishop Museum, Iolani Palace, Washington Place, and Mauna Ala.

SECTION 2. Section 6E-16, Hawaii Revised Statutes, is amended to read as follows:

"§6E-16 Hawaii historic preservation special fund. (a) There is established a Hawaii historic preservation special fund into which shall be deposited the following moneys:

(1) Appropriations by the legislature to the special fund;

(2) Gifts, donations, and grants from public agencies and private persons;

(3) All proceeds collected by the department derived from historic preserve user fees, historic preserve leases or concession fees, fees charged to carry out the purposes of this chapter, or the sale of goods; [~~and~~]

(4) Civil, criminal, and administrative penalties, fines, and other charges collected under this chapter or any rule adopted pursuant to this chapter[.]; and

(5) per cent of the one per cent of all state fund appropriations for capital improvements that are transferred to the works of art special fund pursuant to section 103-8.5.

All interest earned or accrued on moneys deposited [in] into the fund shall become part of the fund. The fund shall be administered by the department; provided that the department may contract with a public or private agency to provide the day-to-day management of the fund.

(b) Subject to legislative authorization, the [~~department may expend moneys from the fund:~~] moneys in the fund shall be expended solely for the following purposes:

(1) For permanent and temporary staff positions;

(2) To replenish goods;

(3) To produce public information materials;

(4) To provide financial assistance to public agencies and private agencies in accordance with chapter 42F involved in historic preservation activities other than those covered by section 6E-9; [~~and~~]

(5) To cover administrative and operational costs of the historic preservation program[.]; and

(6) For costs related to site modifications, display, and interpretive work necessary to enhance the visitor experience for the Bernice Pauahi Bishop Museum, Iolani Palace, Washington Place, and Mauna Ala, including specific preventive maintenance and repairs to restore these facilities to a condition reflecting their status in Hawaii's history and the unique heritage of its arts and culture; provided that the ordinary maintenance or repair of any feature does not involve a change in design, material, or outer appearance or a change in the characteristics that qualified the historic property for entry in the Hawaii register of historic places.

(c) The [~~department shall adopt rules in accordance with chapter 91 for the purposes of this section~~] amount under subsection (a)(5) shall be transferred into the Hawaii historic preservation special fund by the comptroller. From July 1, 2013, through June 30, 2017, when the transferred moneys exceed $ annually, any moneys in excess of $ , but not more than $ , shall be expended by the comptroller for the purposes of subsection (b)(6), pursuant to subsection (e).

(d) The comptroller shall work with the Bernice Pauahi Bishop Museum, Friends of Iolani Palace, Washington Place, and state parks division of the department to decide on the specific site modifications, display, interpretive work, and preventive maintenance and repair projects to be undertaken at the respective facilities for the purposes of subsection (b)(6).

(e) Expenditures from the Hawaii historic preservation special fund shall be made by the comptroller."

SECTION 3. Section 103-8.5, Hawaii Revised Statutes, is amended by amending subsections (b) and (c) to read as follows:

"(b) The works of art special fund shall be used solely for the following purposes:

(1) Costs related to the acquisition of works of art, including any consultant or staff services required to carry out the art in public places and relocatable works of art programs;

(2) Site modifications, display, and interpretive work necessary for the exhibition of works of art;

(3) Upkeep services, including maintenance, repair, and restoration of works of art;

(4) Storing and transporting works of art[.]; and

(5) Deposit into the Hawaii historic preservation special fund for uses specified in section 6E-16.

(c) The one per cent amount, which is included in all capital improvement appropriations, shall be calculated at the time the appropriation bills are signed into law. The moneys shall be transferred into the works of art special fund upon availability of moneys from the appropriations. Each agency receiving capital improvement appropriations shall calculate the one per cent amount and transfer the moneys into the works of art special fund. Of the moneys transferred into the works of art special fund, per cent shall be transferred to the Hawaii historic preservation special fund for uses specified in section 6E-16."

SECTION 4. The comptroller shall submit to the governor and the legislature:

(1) No later than twenty days prior to the convening of the regular sessions of 2014, 2015, and 2016, a complete and detailed report on any site modifications, display, interpretive work, and specific preventive maintenance and repairs for the Bernice Pauahi Bishop Museum, Iolani Palace, Washington Place, and Mauna Ala; and

(2) No later than twenty days prior to the convening of the regular session of 2017, a final report on the projects and expenditures for the Bernice Pauahi Bishop Museum, Iolani Palace, Washington Place, and Mauna Ala, and recommendations for a long-term plan to restore and protect state-owned historic heritage properties and facilities to ensure that all Hawaii residents and visitors are able to access and benefit from the arts, culture, and heritage experiences that these properties and facilities provide.

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

SECTION 6. This Act shall take effect on July 1, 2013.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	486
TWENTY-SEVENTH LEGISLATURE, 2013
STATE OF HAWAII