HB1975

SECTION 1. The purpose of this Act is to transfer the responsibility for regulation of the small boat harbors and related programs from the department of land and natural resources to the department of transportation.

SECTION 2. Chapter 266, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§266- Definitions. As used in this chapter, unless the context otherwise requires:

"Ocean waters" means all waters seaward of the shoreline within the jurisdiction of the State.

"Shoreline" means the upper reaches of the wash of the waves, usually evidenced by the edge of vegetation growth or by the upper limit of debris left by the wash of the waves."

SECTION 3. Section 26-15, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The department shall manage and administer the public lands of the State and minerals thereon [~~and all water and coastal areas of the State except the commercial harbor areas of the State~~], including the soil conservation function, the forests and forest reserves, aquatic life, wildlife resources, and state parks, including historic sites, and all activities thereon and therein [~~including, but not limited to, boating, ocean recreation, and coastal areas programs~~]."

SECTION 4. Section 171-3, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The department of land and natural resources shall be headed by an executive board to be known as the board of land and natural resources. The department shall manage, administer, and exercise control over public lands, the water resources, [~~ocean waters, navigable streams, coastal areas (excluding commercial harbor areas),~~] and minerals and all other interests therein and exercise such powers of disposition thereof as may be authorized by law. The department shall also manage and administer the state parks, historical sites, forests, forest reserves, aquatic life, aquatic life sanctuaries, public fishing areas, [~~boating, ocean recreation, coastal programs,~~] wildlife, wildlife sanctuaries, game management areas, public hunting areas, natural area reserves, and other functions assigned by law."

SECTION 5. Section 199-3, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The conservation and resources enforcement officers, with respect to all state lands, including public lands, state parks, forest reserves, forests, aquatic life and wildlife areas, Kaho‘olawe island reserve, and any other lands and waters within the State, shall:

(1) Enforce title 12, chapters 6D, 6E, and 6K, and rules adopted thereunder;

(2) Investigate complaints, gather evidence, conduct investigations, and conduct field observations and inspections as required or assigned;

(3) Cooperate with enforcement authorities of the State, counties, and federal government in development of programs and mutual aid agreements for conservation and resources enforcement activities within the State;

(4) Cooperate with established search and rescue agencies of the counties and the federal government in developing plans and programs and mutual aid agreements for search and rescue activities within the State;

(5) Check and verify all leases, permits, and licenses issued by the department of land and natural resources;

(6) Enforce the laws relating to firearms, ammunition, and dangerous weapons contained in chapter 134;

[~~(7)~~ ~~Enforce the laws in chapter 291E relating to operating a vessel on or in the waters of the State while using intoxicants;~~

~~(8)~~ Whether through a specifically designated marine patrol or otherwise, enforce the rules in the areas of boating safety, conservation, and search and rescue relative to the control and management of boating facilities owned or controlled by the State, ocean waters, and navigable streams and any activities thereon or therein, and beaches encumbered with easements in favor of the public, and the rules regulating vessels and their use in the waters of the State;] and

[~~(9)~~] (7) Carry out other duties and responsibilities as the board of land and natural resources from time to time may direct."

SECTION 6. Section 200-1, Hawaii Revised Statutes, is amended to read as follows:

1. By adding a new definition to be appropriately inserted and to read:

""Director" means the director of transportation."

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

""Department" means the department of [~~land and natural resources.~~] transportation."

3. By repealing the definitions of "board" and "chairperson."

["~~"Board" means the board of land and natural resources.~~

~~"Chairperson" means the chairperson of the board of land and natural resources.~~"]

SECTION 7. Section 200-2, Hawaii Revised Statutes, is amended to read as follows:

"§200-2 [~~Board of land and natural resources,~~] Department of transportation; powers and duties. (a) The [~~board~~] department shall have the primary responsibility for administering the ocean recreation and coastal areas programs and performing the functions heretofore performed by the department of [~~transportation and the department of public safety~~] land and natural resources in the areas of boating safety, conservation, search and rescue, and security of small boat harbor environs.

(b) The [~~board~~] department shall not transfer its jurisdiction, management, or operations of the small boat harbors to any other department or agency or any county in any manner unless expressly provided by law."

SECTION 8. Section 200-2.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Notwithstanding any law to the contrary, the [~~board~~] department may lease fast lands and submerged lands within an existing state boating facility by public auction, a request for proposals, or by direct negotiation pursuant to section 171-59 and chapter 190D, for private development, management, and operation; provided that any lease of fast lands or submerged lands pursuant to a request for proposals shall be subject to section 200-2.6, regardless [~~to which~~] of the state boating facility to which the fast or submerged lands are attached.

As used in this section, the term "state boating facility" means a state small boat harbor, launching ramp, offshore mooring, pier, wharf, landing, or any other area under the jurisdiction of the department pursuant to this chapter."

SECTION 9. Section 200-2.6, Hawaii Revised Statutes, is amended to read as follows:

"[[]§200-2.6[]] Ala Wai boat harbor; leases. The fast lands and submerged lands of the Ala Wai boat harbor that may be leased include the following:

(1) All fast lands and submerged lands described in the request for qualifications or request for proposals issued by the former division of boating and ocean recreation of the department of land and natural resources on November 25, 2008;

(2) The fast land described as a portion of tax map key: (1) 2-3-37-12, composed of approximately 112,580 square feet, presently used for harbor offices and permitted vehicular parking; and

(3) The fast land described as a portion of tax map key: (1) 2-3-37-12, which is a triangular area located Diamond Head of Mole B, presently used for permitted vehicular parking."

SECTION 10. Section 200-3, Hawaii Revised Statutes, is amended to read as follows:

"§200-3 Ocean recreation and coastal areas programs. The [~~board~~] department shall assume the following functions of the department of [~~transportation:~~] land and natural resources:

(1) Managing and administering the ocean-based recreation and coastal areas programs of the State;

(2) Planning, developing, operating, administering, and maintaining small boat harbors, launching ramps, and other boating facilities and associated aids to navigation throughout the State;

(3) Developing and administering an ocean recreation management plan;

(4) Administering and operating a vessel registration system for the State;

(5) Regulating the commercial use of state waters and marine resources, including operations originating from private marinas;

(6) Regulating boat regattas and other ocean water events;

(7) Administering a marine casualty and investigation program;

(8) Assisting in abating air, water, and noise pollution;

(9) Conducting public education in boating safety;

(10) Administering the boating special fund;

(11) Assisting in controlling shoreline erosion;

(12) Repairing seawalls and other existing coastal protective structures under the jurisdiction of the State; and

(13) Removing nonnatural obstructions and public safety hazards from the shoreline, navigable streams, harbors, channels, and coastal areas of the State."

SECTION 11. Section 200-10, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) The permittee shall pay moorage fees to the department for the use permit that shall be based on but not limited to the use of the vessel, its effect on the harbor, use of facilities, and the cost of administering this mooring program; and, furthermore:

(1) Except for commercial maritime activities where there is a tariff established by the department [~~of transportation~~], moorage fees shall be established by appraisal by a state-licensed appraiser approved by the department and shall be higher for nonresidents than for residents[. The moorage fees shall be set by appraisal categories schedule A and schedule B, to be determined by the department, and may be increased annually by the department, to reflect a cost-of-living index increase; provided that:

~~(A)~~ ~~Schedule A shall include existing mooring permittees; and~~

~~(B)~~ ~~Schedule B shall apply to all new mooring applicants and transient slips on or after July 1, 2011;~~

~~provided further that schedule A rates shall be increased by the same amount each year so that schedule A rates equal schedule B rates by July 1, 2014~~];

(2) For commercial maritime activities where there is a tariff established by the harbors division of the department [~~of transportation~~], the department may [~~adopt~~] apply the published tariff of the harbors division of the department [~~of transportation~~] or establish the fee by appraisal by a state-licensed appraiser approved by the department;

(3) An application fee shall be collected when applying for moorage in state small boat harbors and shall thereafter be collected annually when the application is renewed. The application fee shall be:

(A) Set by the department; and

(B) Not less than $100 for nonresidents;

(4) If a recreational vessel is used as a place of principal habitation, the permittee shall pay, in addition to the moorage fee, a liveaboard fee that shall be calculated at a rate of:

(A) $5.20 a foot of vessel length a month if the permittee is a state resident; and

(B) $7.80 a foot of vessel length a month if the permittee is a nonresident;

provided that the liveaboard fees established by this paragraph may be increased by the department at the rate of the annual cost-of-living index, but not more than five per cent in any one year, beginning July 1 of each year;

(5) If a vessel is used for commercial purposes from its permitted mooring, the permittee shall pay, in lieu of the moorage and liveaboard fee, a fee based on three per cent of the gross revenues derived from the use of the vessel or two times the moorage fee assessed for a recreational vessel of the same size, whichever is greater; and

(6) The department is authorized to assess and collect utility fees, including electrical and water charges, and common-area maintenance fees in small boat harbors."

SECTION 12. Section 200-18, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The department shall maintain a record of all persons adjudicated of violations under part III of chapter 291E and the period of suspension or revocation of operator privileges ordered by the [~~director~~] administrative director of the courts under that part."

SECTION 13. Section 205A-48, Hawaii Revised Statutes, is amended to read as follows:

"§205A-48 Conflict of other laws. In case of a conflict between the requirements of any other state law or county ordinance regarding shoreline setback lines, the more restrictive requirements shall apply in furthering the purposes of this part. Nothing contained in this part shall be construed to diminish the jurisdiction of the state department of transportation over wharves, airports, docks, piers, small boat or other [~~commercial~~] harbors, and any other maritime or water sports recreational facilities constructed by the State; provided that [~~such~~] plans for construction of the facility are submitted for the review and information of the officer of the respective agency charged with the administration of the county zoning laws, and found not to conflict with any county ordinances, zoning laws, and building codes."

SECTION 14. Section 248-8, Hawaii Revised Statutes, is amended to read as follows:

"§248-8 Special funds in treasury of State. There are created in the treasury of the State three special funds to be known, respectively, as the state highway fund, the airport revenue fund, and the boating special fund. All taxes collected under chapter 243 in each calendar year, except the "county of Hawaii fuel tax", "city and county of Honolulu fuel tax", "county of Maui fuel tax", and "county of Kauai fuel tax", shall be deposited in the state highway fund; provided that:

(1) All taxes collected under chapter 243 with respect to gasoline or other aviation fuel sold for use in or used for airplanes shall be set aside in the airport revenue fund; and

(2) All taxes collected under chapter 243 with respect to liquid fuel sold for use in or used for small boats shall be deposited in the boating special fund.

As used in this section, "small boats" means all vessels and other watercraft except those operated in overseas transportation beyond the State, and ocean-going tugs and dredges. The [~~chairperson of the board of land and natural resources,~~] director of transportation, from July 1, [~~1992,~~] 2019, and every three years thereafter, shall establish standards or formulas that will as equitably as possible establish the total taxes collected under chapter 243 in each fiscal year that are derived from the sale of liquid fuel for use in or used for small boats. The amount so determined shall be deposited in the boating special fund.

An amount equal to 0.3 per cent of the highway fuel tax but not more than $250,000 collected under chapter 243 shall be allocated each fiscal year to the special land and development fund for purposes of the management, maintenance, and development of trails and trail accesses under the jurisdiction of the department of land and natural resources established under section 198D-2."

SECTION 15. Section 266-1, Hawaii Revised Statutes, is amended to read as follows:

"§266-1 Department of transportation; harbors; jurisdiction. All [~~commercial~~] ocean waters and navigable streams, and all harbors and roadsteads, and all [~~commercial~~] harbor and waterfront improvements belonging to or controlled by the State, and all vessels and shipping within the [~~commercial~~] harbors and roadsteads, waters, and streams shall be under the care and control of the department of transportation.

[For the purpose of this chapter, "commercial harbor" means a harbor or off-shore mooring facility which is primarily for the movement of commercial cargo, passenger and fishing vessels entering, leaving, or traveling within the State, and facilities and supporting services for loading, off-loading, and handling of cargo, passengers, and vessels.]"

SECTION 16. Section 266-2, Hawaii Revised Statutes, is amended to read as follows:

"§266-2 Powers and duties of department. (a) The department of transportation shall:

(1) Have and exercise all the powers and shall perform all the duties which may lawfully be exercised by or under the State relative to the control and management of [~~commercial~~] shores, shore waters, navigable streams, harbors, [~~commercial~~] harbor and waterfront improvements, ports, docks, wharves, piers, quays, bulkheads, and landings belonging to or controlled by the State, and the shipping using the same;

(2) Have the authority to use and permit and regulate the use of the [~~commercial~~] docks, wharves, piers, quays, bulkheads, and landings belonging to or controlled by the State for receiving or discharging passengers and for loading and landing merchandise, with a right to collect wharfage and demurrage thereon or therefor;

(3) Subject to all applicable provisions of law, have the power to fix and regulate from time to time rates and charges for:

(A) Services rendered in mooring [~~commercial~~] vessels;

(B) The use of [~~commercial~~] moorings belonging to or controlled by the State;

(D) Warehouse space, office space, and storage space for freight, goods, wares, and merchandise; and

(E) The use of derricks or other equipment belonging to the State or under the control of the department;

(4) Make other charges including toll or tonnage charges on freight passing over or across docks, wharves, piers, quays, bulkheads, or landings;

(5) Appoint and remove clerks, harbor agents and their assistants, and all such other employees as may be necessary, and to fix their compensation;

(6) Adopt rules pursuant to chapter 91 and not inconsistent with law; and

(7) Generally have all powers necessary to fully carry out this chapter[.] and chapter 200.

(b) Notwithstanding any law or provision to the contrary, the department of transportation [~~is authorized to~~] may plan, construct, operate, and maintain any commercial harbor facility in the State, including[,] but not limited to[,] the acquisition and use of lands necessary to stockpile dredged spoils, without the approval of county agencies.

All moneys appropriated for [~~commercial~~] harbor improvements, including new construction, reconstruction, repairs, salaries, and operating expenses, shall be expended under the supervision and control of the department, subject to this chapter and chapter 103D.

All contracts and agreements authorized by law to be entered into by the department shall be executed on its behalf by the director of transportation.

(c) The department shall prepare and submit annually to the governor a report of its official acts during the preceding fiscal year, together with its recommendations as to [~~commercial~~] harbor improvements throughout the State."

SECTION 17. Section 266-2.2, Hawaii Revised Statutes, is amended to read as follows:

"[[]§266-2.2[]] Exemption from conservation district permitting and site plan approval requirements. Notwithstanding any law to the contrary, all work involving submerged lands used for state [~~commercial~~] harbor purposes shall be exempt from any permitting and site plan approval requirements established for lands in a conservation district."

SECTION 18. Section 266-3, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

"(a) The director of transportation may adopt rules as necessary to:

(1) Regulate the manner in which all vessels may enter and moor, anchor or dock in the [~~commercial~~] ocean waters, navigable streams, harbors, ports, and roadsteads of the State, or move from one dock, wharf, pier, quay, bulkhead, landing, anchorage, or mooring to another within the [~~commercial~~] waters, streams, harbors, ports, or roadsteads;

(2) The examination, guidance, and control of harbor masters and their assistants and their conduct while on duty;

(3) The embarking or disembarking of passengers;

(4) The expeditious and careful handling of freight, goods, wares, and merchandise of every kind which may be delivered for shipment or discharged on the [~~commercial~~] docks, wharves, piers, quays, bulkheads, or landings belonging to or controlled by the State; and

(5) Defining the duties and powers of carriers, shippers, and consignees respecting passengers, freight, goods, wares, and merchandise in and upon the docks, wharves, piers, quays, bulkheads, or landings within the [~~commercial~~] harbors, ports, and roadsteads of the State. The director may also make further rules for the safety of the docks, wharves, piers, quays, bulkheads, and landings on, in, near, or affecting [~~a commercial~~] ocean waters, navigable streams, and harbor and waterfront improvements belonging to or controlled by the State.

(b) The director may also adopt, amend, and repeal such rules as are necessary:

(1) For the proper regulation and control of all shipping, traffic, and other related activities in the [~~commercial~~] harbors belonging to or controlled by the State; of the entry, departure, mooring, and berthing of vessels therein; and of all other matters and things connected with such activities[;] in all the harbors, ocean waters, and navigable streams;

(2) To establish safety measures and security requirements in or about the [~~commercial~~] harbors, land, and facilities belonging to or controlled by the State;

(3) To prevent the discharge or throwing into [~~commercial~~] harbors, ocean waters, and navigable streams, of rubbish, refuse, garbage, or other substances likely to affect water quality or that contribute to making such harbors, ocean waters, and navigable streams unsightly, unhealthful, or unclean, or that are liable to fill up shoal or shallow waters in, near, or affecting the [~~commercial~~] harbors[~~; and~~], ocean waters, and navigable streams; and

(4) To prevent the escape of fuel or other oils or substances into the waters in, near, or affecting [~~commercial~~] harbors, ocean waters, and navigable streams, from any source point, including, but not limited to, any vessel or pipes or storage tanks upon the land."

SECTION 19. Section 266-19.5, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (a) to read:

"(a) Notwithstanding any law to the contrary, the department of transportation may enter into a capital advancement contract with a private party for any public improvement to or construction of a state harbor, [~~commercial harbor,~~] roadstead, or other waterfront improvement belonging to or controlled by the State, if the director of transportation determines that a capital advancement contract promotes the best interest of the State by finding that:

(1) Private development is likely to be less costly than any other type of contract;

(2) Private development provides needed public improvements on a significantly more timely basis; or

(3) Public financing for the public improvements is not available on a timely basis."

2. By amending subsection (e) to read:

"(e) For the purposes of this section:

"Capital advancement contract" means an agreement between the department of transportation and a private party whereby the private party agrees to furnish capital, labor, or materials for a public improvement to or construction of a state harbor, [~~commercial harbor,~~] roadstead, or other waterfront improvement belonging to or controlled by the State and in return for which the private party may be reimbursed in a manner to be determined by the department.

"Total value" includes any contract extension, project redesign, add-ons, or any other occurrence, act, or material cost that may increase the cost of the contracted project."

SECTION 20. Section 266-24, Hawaii Revised Statutes, is amended to read as follows:

"§266-24 Enforcement. (a) The director of transportation shall enforce this chapter and chapter 200, and all rules [thereunder, except for the rules relative to the control and management of the beaches encumbered with easements in favor of the public and ocean waters which shall be enforced by the department of land and natural resources.] adopted pursuant to this chapter and chapter 200. For the purpose of the enforcement of this chapter and chapter 200, and of all rules adopted pursuant to this chapter[,] and chapter 200, the powers of police officers are conferred upon the director of transportation and any officer, employee, or representative of the department of transportation. Without limiting the generality of the foregoing, the director and any person appointed by the director hereunder may serve and execute warrants, arrest offenders, and serve notices and orders. The director of transportation and any employee, agent, or representative of the department of transportation appointed as enforcement officers by the director, and every state and county officer charged with the enforcement of any law, statute, rule, regulation, ordinance, or order, shall enforce and assist in the enforcement of this chapter and chapter 200, and of all rules and orders issued pursuant [~~thereto,~~] to this chapter and chapter 200, and in carrying out [~~the~~] these responsibilities [~~hereunder~~], each shall be specifically authorized to:

(1) Conduct any enforcement action [~~hereunder~~] under the authority of this section in any [~~commercial~~] harbor area and any area over which the department of transportation and the director of transportation [~~has~~] have jurisdiction under this chapter[;] and chapter 200;

(2) Inspect and examine at reasonable hours any premises, and the buildings and other structures thereon, where harbors or harbor facilities are situated, or where harbor-related activities are operated or conducted; and

(3) Subject to limitations as may be imposed by the director of transportation, serve and execute warrants, arrest offenders, and serve notices and orders.

For purposes of this subsection, the term "agents and representatives" includes persons performing services at harbors or harbor areas under contract with the department of transportation.

(b) The department of transportation, in the name of the State, may enforce this chapter and chapter 200 and the rules and orders issued pursuant thereto by injunction or other legal process in the courts of the State.

(c) Without limiting the generality of the foregoing, enforcement measures may be effectuated through a specifically designated marine patrol or otherwise, including enforcement of the rules in the areas of boating safety, conservation, and search and rescue relative to the control and management of boating facilities owned or controlled by the State, ocean waters, and navigable streams and any activities thereon or therein, and beaches encumbered with easements in favor of the public, and the rules regulating vessels and their use in the waters of the State.

(d) The department shall enforce the laws in chapter 291E relating to operating a vessel on or in the waters of the State while using intoxicants."

SECTION 21. Section 266-27, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (a) to read:

"(a) No person shall moor a vessel in a state [~~commercial~~] harbor without obtaining a use permit; nor shall a person continue to moor a vessel in any state [~~commercial~~] harbor if the use permit authorizing the vessel to moor has expired or otherwise been terminated. A vessel moored without a use permit or with a use permit that has expired or been terminated is an unauthorized vessel and is subject to subsections (b) to (e)."

2. By amending subsection (c) to read:

"(c) An unauthorized vessel may be impounded by the department at the sole cost and risk of the owner of the vessel, if [~~such a~~] the vessel is not removed after the seventy-two-hour period or if during [~~said~~] that period the vessel is removed and re-moored in [~~said~~] that harbor or any other state [~~commercial~~] harbor without a use permit."

SECTION 22. Section 266-28, Hawaii Revised Statutes, is amended to read as follows:

"§266-28 Fines arising from environmental protection and maritime transportation security violations. Notwithstanding any other law to the contrary, any [~~commercial~~] harbor tenant or user, including any shipper or shipping agent, who violates any federal, state, or county law or rule relating to environmental protection or maritime transportation security pursuant to title 33 Code of Federal Regulations chapter 1 and thereby causes a fine to be levied by the United States Coast Guard upon the department, shall reimburse the department for the entire amount of the fine. The department may take such actions necessary to collect and deposit any amount reimbursable under this section into the harbor special fund, and may also demand reimbursement for costs or expenses incurred by the department resulting from enforcement of this section."

SECTION 23. Section 200-5, Hawaii Revised Statutes, is repealed.

["~~[§200-5] Commercial harbors excluded. For purposes of this chapter, ocean waters and navigable streams shall not include the commercial harbors of the State.~~"]

SECTION 24. Section 266-1.6, Hawaii Revised Statutes, is repealed.

["[~~§266-1.6~~] Hana harbor; jurisdiction. Notwithstanding any law to the contrary, the department of transportation shall have jurisdiction and administrative authority over Hana harbor, excluding its small boat ramp facility. The Hana harbor small boat ramp facility shall remain under the jurisdiction and administrative authority of the department of land and natural resources."]

SECTION 25. Sections 200-4(a), 200-8, 200-9(e), 200-10(d) and (f), 200-12.5(c), 200-14.5(a), 200-19, 200-22, 200-26(d), 200-36, 200-37(k), 200-41, 200-49(a), and 200-73, Hawaii Revised Statutes, are amended by substituting:

(1) The term "director" or like terms, wherever the term "chairperson" or like terms occur; and

(2) The word "department" or like terms, wherever the terms "board", "department of land and natural resources", or like terms occur,

as the context requires.

SECTION 26. All rights, powers, functions, and duties of the department of land and natural resources relating to boating, small boat harbors, other ocean-based recreational activities, and the marine patrol are transferred to the department of transportation.

SECTION 27. All employees who occupy civil service positions and whose functions are transferred to the department of transportation 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; and 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 employee possesses legal and public employment requirements for the position to which transferred or appointed, as applicable; and provided further that subsequent changes in status may be made pursuant to applicable employment and compensation laws. The director of transportation may prescribe the duties and qualifications of these employees and fix their salaries without regard to chapter 76, Hawaii Revised Statutes.

SECTION 28. All rules, policies, procedures, guidelines, and other material adopted or developed by the board of land and natural resources to implement provisions of the Hawaii Revised Statutes that are reenacted or made applicable to the department of transportation by this Act shall remain in full force and effect until amended or repealed by the department of transportation pursuant to chapter 91, Hawaii Revised Statutes. In the interim, every reference to the department of land and natural resources, the chairperson of the board of land and natural resources, or the board of land and natural resources in those rules, policies, procedures, guidelines, and other material is amended to refer to the department of transportation or director of transportation, as appropriate.

SECTION 29. All deeds, leases, contracts, loans, agreements, permits, or other documents executed or entered into by or on behalf of the department of land and natural resources, pursuant to the provisions of the Hawaii Revised Statutes, that are reenacted or made applicable to the department of transportation by this Act shall remain in full force and effect. Effective July 1, 2018, every reference to the department of land and natural resources, the chairperson of the board of land and natural resources, or the board of land and natural resources in those deeds, leases, contracts, loans, agreements, permits, or other documents shall be construed as a reference to the department of transportation or director of transportation, as appropriate.

SECTION 30. 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 land and natural resources or the board of land and natural resources relating to the functions transferred to the department of transportation shall be transferred with the functions to which they relate.

SECTION 31. It is the intent of this Act not to jeopardize the receipt of any federal aid nor to impair the obligation of the State or any agency thereof to the holders of any bond issued by the State or by any such agency, and to the extent, and only to the extent, necessary to effectuate this intent, the governor may modify the strict provisions of this Act, but shall promptly report any modification with reasons therefor to the legislature at its next session thereafter for review by the legislature.

SECTION 32. All acts passed by the legislature during the regular session of 2018, whether enacted before or after the effective date of this Act, shall be amended to conform to this Act unless such acts specifically provide that this Act is being amended.

SECTION 33. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2018-2019 to hire staff to plan and prepare for the transfer of the ocean recreation and coastal areas programs from the department of land and natural resources to the department of transportation.

The sum appropriated shall be expended by the department of transportation for the purposes of this Act.

SECTION 34. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 35. This Act shall take effect on July 1, 2018.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1975
TWENTY-NINTH LEGISLATURE, 2018
STATE OF HAWAII