SB2393

SECTION 1. Section 201, Hawaiian Homes Commission Act, 1920, as amended, is amended by adding a new definition to be appropriately inserted and to read as follows:

""Beneficiary consultation" means a direct, timely, and interactive process of receiving input from native Hawaiian beneficiaries regarding proposed actions by the commission. The process may include communication through in-person listening sessions, mail, email, or posting on the department's website and social accounts, including specific notification to all registered homestead associations."

SECTION 2. Section 202, Hawaiian Homes Commission Act, 1920, as amended, is amended to read as follows:

"§202. Department officers, staff, commission, members, compensation[.]; director; legal counsel; reporting. (a) There shall be a department of Hawaiian home lands which shall be headed by an executive board to be known as the Hawaiian homes commission. The members of the commission shall be nominated and appointed in accordance with section 26‑34, Hawaii Revised Statutes. The commission shall be composed of nine members, as follows: three shall be residents of the city and county of Honolulu; two shall be residents of the county of Hawaii one of whom shall be a resident of east Hawaii and the other a resident of west Hawaii; two shall be residents of the county of Maui one of whom shall be a resident from the island of Molokai; one shall be a resident of the county of Kauai; and the ninth member shall be the chairman of the Hawaiian homes commission. All members shall have been residents of the State at least three years prior to their appointment and at least [~~four~~] five of the members shall be [~~descendants of not less than one-fourth part of the blood of the races inhabiting the Hawaiian Islands previous to 1778.~~] beneficiaries of the trust. The members of the commission shall serve without pay, but shall receive actual expenses incurred by them in the discharge of their duties as [~~such~~] members. The governor shall appoint the [~~chairman~~] chairperson of the commission from among the commission members [~~thereof~~].

[~~The commission may delegate to the chairman such~~] A director of Hawaiian home lands shall exercise the duties, powers, and authority or so much thereof, delegated to the director by the commission, and as may be lawful or proper for the [~~performance of the functions vested in the commission.~~] administration of the department. The [~~chairman of the commission~~] director shall serve in a full-time capacity. [~~He shall, in such capacity, perform such duties, and exercise such powers and authority, or so much thereof, as may be delegated to him by the commission as herein provided above.~~] The governor shall appoint a director who is not a member of the commission.

(b) The provisions of section 76-16, Hawaii Revised Statutes, shall apply to the positions of [~~first~~] deputy director and private secretary to the [~~chairman of the commission.~~] director. The department may hire temporary staff on a contractual basis not subject to chapters 76 and 78, Hawaii Revised Statutes, when the services to be performed will assist in carrying out the purposes of the Act. These positions may be funded through appropriations for capital improvement program projects and by the administration account, operating fund, or native Hawaiian rehabilitation fund. No contract shall be for a period longer than two years, but individuals hired under contract may be employed for a maximum of six years; provided that the six-year limitation shall not apply if the department, with the approval of the governor, determines that [~~such~~] these contract individuals are needed to provide critical services for the efficient functioning of the department. All other positions in the department shall be subject to chapter 76, Hawaii Revised Statutes.

All vacant and new civil service positions covered by chapter 76, Hawaii Revised Statutes, shall be filled in accordance with section 76-22.5, Hawaii Revised Statutes; provided that the provisions of these sections shall be applicable first to qualified persons of Hawaiian extraction.

(c) The commission may appoint or retain by contract an attorney who is independent of the attorney general, to serve as counsel and provide legal services to the commission and beneficiaries of the trust.

(d) The department shall distribute by email or its website a quarterly report to the beneficiaries, registered homestead associations, and the Legislature that identifies each land disposition and lease cancellation including the land instrument used, the amount of land, under which section of the Act the disposition or cancellation is authorized, and whether the disposition or cancellation was made on behalf of a beneficiary or non-beneficiary. The quarterly report shall also identify all trust fund receipts and expenditures.

(e) The department shall notify the beneficiaries and registered homestead associations through beneficiary consultation of scheduled informational and consultation session and provide the beneficiaries and registered homestead associations with thirty days to comment.

(f) The State may establish an inter-agency consisting of all the heads of the state departments to address the purposes of this chapter. The inter-agency, if established, shall meet at least three times a year."

SECTION 3. Section 213.6, Hawaiian Homes Commission Act, 1920, as amended, is amended to read as follows:

"§213.6. Hawaiian home lands trust fund. There is established a trust fund to be known as the Hawaiian home lands trust fund, into which shall be deposited all appropriations by the state legislature specified to be deposited therein. Moneys of the Hawaiian home lands trust fund shall be expended by the department, as provided by law, upon approval by the commission and shall be used for capital improvements and other purposes undertaken in furtherance of the Act. The department shall have a fiduciary responsibility toward the trust fund and shall provide annual reports therefor to the legislature and to the beneficiaries of the trust. The annual reports shall include a full accounting of all Act 14, Session Laws of Hawaii Special Session 1995, funding receipts and expenditures.

The commission may deposit moneys from the trust fund into depositories other than the state treasury and may manage, invest, and reinvest moneys in the trust fund. The commission may hold, purchase, sell, assign, transfer, or dispose of any securities and investments in which any of the moneys have been invested, as well as the proceeds of the investments. Moneys from the trust fund that are deposited into depositories other than the state treasury shall be exempt from the requirements of chapters 36 and 38. Any interest or other earnings arising out of investments from the trust fund shall be credited to and deposited into the trust fund."

SECTION 4. Section 222, Hawaiian Homes Commission Act, 1920, as amended, is amended by amending subsection (a) to read as follows:

"(a) The department may make [~~such~~] expenditures and shall adopt rules in accordance with chapter 91, Hawaii Revised Statutes, as are necessary for the efficient execution of the functions vested in the department by this Act. All expenditures of the department and all moneys necessary for loans made by the department, in accordance with [~~the provisions of~~] this Act, shall be allowed and paid upon the presentation of itemized vouchers approved by the [~~chairman~~] chairperson of the commission or the [~~chairman's~~] chairperson's designated representative. The department shall make an annual report to the legislature of the State upon the first day of each regular session and [~~such~~] any special reports as the legislature may from time to time require. The [~~chairman~~] chairperson and members of the commission shall give bond as required by law. The sureties upon the bond and the conditions thereof shall be approved annually by the governor."

SECTION 5. Section 26-17, Hawaii Revised Statutes, is amended to read as follows:

"§26-17 Department of Hawaiian home lands. The department of Hawaiian home lands shall be headed by an executive board to be known as the Hawaiian homes commission.

The commission shall be composed of nine members. The appointment, tenure, and removal of the members and the filling of vacancies on the commission shall be in accordance with section 26-34 and section 202(a) of the Hawaiian Homes Commission Act of 1920, as amended. The governor shall appoint the chairperson of the commission from among the members thereof.

[~~The commission may delegate to the chairperson such~~] The director of Hawaiian home lands shall exercise the duties, powers, and authority, or so much thereof, delegated to the director by the commission, and as may be lawful or proper[,] for the [~~performance of the functions vested in the commission.~~] administration of the department.

The [~~chairperson of the board~~] director shall serve in a full-time capacity [~~and shall perform such duties, and exercise such powers and authority, or so much thereof as may be delegated to the chairperson by the board~~].

The department shall administer the Hawaiian Homes Commission Act of 1920 as set forth in the Constitution of the State and by law.

The functions and authority heretofore exercised by the Hawaiian homes commission as heretofore constituted are transferred to the department of Hawaiian home lands established by this chapter."

SECTION 6. Any sitting Hawaiian homes commission member whose term of office has not expired on the effective date of this Act and who does not qualify to be a member of the Hawaiian homes commission under the amendments made by this Act may continue to serve on the commission until that member's term expires.

SECTION 7. The incumbent who occupies the position of chairperson of the Hawaiian homes commission on the effective date of this Act shall continue to serve in that capacity with all the powers and duties appertaining thereto prior to the effective date of this Act until a director of Hawaiian home lands is nominated and qualified pursuant to section 26-34, Hawaii Revised Statutes. Beginning on the day the director of Hawaiian home lands is so qualified, the chairperson shall no longer receive a salary and the director shall receive the salary formerly assigned to the chairperson.

SECTION 8. The provisions of the amendments made by this Act to the Hawaiian Homes Commission Act, 1920, as amended, are declared to be severable, and if any section, sentence, clause, or phrase, or the application thereof to any person or circumstances is held ineffective because there is a requirement of having the consent of the United States to take effect, then that portion only shall take effect upon the granting of consent by the United States and effectiveness of the remainder of these amendments or the application thereof shall not be affected.

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

SECTION 10. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	2393
THIRTIETH LEGISLATURE, 2020
STATE OF HAWAII