Report Title:

SECTION 1. Section 281-11, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (a) to read:

"(a) [A] There may be created for each of the counties in the office of the elected executive head, a liquor commission or liquor control adjudication board, consisting of not less than five members, no more than the minimum required for a quorum of whom shall belong to the same political party at the time of appointment[~~, may be created for each of the counties~~]. The elected executive head of each county may nominate, and by and with the advice and consent of the legislative body of the county, shall appoint the members of the commissions and boards. The elected executive head of each county, by and with the advice and consent of the legislative body of the county, may remove from office any of the members. The commission or board shall designate one of its members as chairperson. Each member shall be a citizen of the United States and shall have resided in the county for which appointed for at least three years immediately preceding the date of the member's appointment."

2. By amending subsection (c) to read:

"(c) The amount of compensation and reasonable expenses for travel and other costs necessarily incident to the discharge of the members' duties shall be established by the elected executive head of each county."

SECTION 2. Section 281-14, Hawaii Revised Statutes, is amended to read as follows:

"§281-14 Records. The liquor commission and liquor control adjudication board shall ensure that complete records are kept of all commission and board meetings, proceedings, and acts with reference to all business pertaining to licenses issued, suspended, and revoked, moneys received as license fees and otherwise, and disbursements, upon the approval of the elected executive head, by the commission or board or under [~~its~~] the authority[.] of the commission or board. Unless otherwise prohibited by law, these records shall be open for examination by the public. The records may be destroyed as provided in section 46-43."

SECTION 3. Section 281-15, Hawaii Revised Statutes, is amended to read as follows:

"§281-15 Reports, accounts, audit. On or before September 30 of each year the chairperson of the liquor commission shall submit to the elected executive head of the county a full report upon the business and operations of the commission during the preceding year, which year shall be coterminous with the fiscal year of the county, with such other matters of information and comment as the elected executive head may deem appropriate. The report shall itemize the costs and expenses of the administration of the commission in its control, supervision, or regulation of the manufacture, importation, and sale of liquors, as set forth in this chapter. The elected executive head shall furnish copies thereof to the legislative body of the county and to the fiscal officer of the county.

The accounts of the commissions for the several counties shall be regularly examined by the fiscal officer who shall report thereon in writing to the legislative body of the several counties."

SECTION 4. Section 281-16, Hawaii Revised Statutes, is amended to read as follows:

"§281-16 County liquor commission and liquor control adjudication board funds; disposition of realization; payment of expenses. All fees and other moneys collected or received by each liquor commission or liquor control adjudication board under this chapter shall be paid not less than weekly into the general fund of the respective county [~~or a special fund as provided by ordinance~~]. All expenses of the commission or board, including any expenses and compensation of its members and expenses and salaries of its subordinates, shall be paid [~~in the manner provided by ordinance.~~] out of the general fund of the respective county and only upon the approval of the elected executive head of the respective county."

SECTION 5. Section 281-17.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Any such liquor license fees or any moneys collected or received by any liquor commission under this chapter shall be deposited into the general fund of the respective county and may [~~only~~] be used for costs and expenses directly relating to operational and administrative costs actually incurred by the liquor commission collecting or receiving such liquor license fees or moneys. [~~Such fees or moneys shall not be used for any costs or expenses other than those directly relating to its operation and administration, except as otherwise provided by law.~~]"

SECTION 6. All rights, powers, functions, and duties of the liquor commissions and liquor control adjudication boards relating to the liquor commissions' and liquor control adjudication boards' administrative authority, but not these entities' adjudication authority, are transferred to the respective offices of the mayors of each county.

All employees who occupy civil service positions and whose functions are transferred to the offices of the mayors of each county by this Act shall retain their civil service status, whether permanent or temporary. Employees shall be transferred without loss of salary, seniority (except as prescribed by applicable collective bargaining agreements), retention points, prior service credit, any vacation and sick leave credits previously earned, and other rights, benefits, and privileges, in accordance with state personnel laws and this Act; provided that the employees possess the minimum qualifications and public employment requirements for the class or position to which transferred or appointed, as applicable; provided further that subsequent changes in status may be made pursuant to applicable civil service and compensation laws.

Any employee who, prior to this Act, is exempt from civil service and is transferred as a consequence of this Act may retain the employee's exempt status, but shall not be appointed to a civil service position as a consequence of this Act. An exempt employee who is transferred by this Act shall not suffer any loss of prior service credit, vacation or sick leave credits previously earned, or other employee benefits or privileges as a consequence of this Act; provided that the employees possess legal and public employment requirements for the position to which transferred or appointed, as applicable; provided further that subsequent changes in status may be made pursuant to applicable employment and compensation laws. The mayor of the respective county may prescribe the duties and qualifications of these employees and fix their salaries without regard to chapter 76, Hawaii Revised Statutes.

SECTION 7. All appropriations, records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by a liquor commission or liquor control adjudication board of a county relating to the functions transferred to the respective office of the mayor shall be transferred with the functions to which they relate.

SECTION 8. All rules, policies, procedures, guidelines, and other material adopted or developed by a liquor commission or liquor control adjudication board relating to the administrative authority, but not the adjudicatory authority of the liquor commission or liquor control adjudication board, to implement provisions of the Hawaii Revised Statutes that are reenacted or made applicable to the office of the mayor by this Act shall remain in full force and effect until amended or repealed by the office of the mayor pursuant to chapter 91, Hawaii Revised Statutes. In the interim, every reference to the liquor commission or liquor control adjudication board or chairperson of the liquor commission or liquor control adjudication board in those rules, policies, procedures, guidelines, and other material relating to the administrative authority, but not the adjudicatory authority of the liquor commission or liquor control adjudication board, is amended to refer to the office of the mayor or the mayor as appropriate.

SECTION 9. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 10. This Act shall take effect on July 1, 2016.

HOUSE OF REPRESENTATIVES	H.B. NO.	2487
TWENTY-SEVENTH LEGISLATURE, 2014		H.D. 1
STATE OF HAWAII		Proposed