June 20, 2003
STATEMENT OF OBJECTIONS TO SENATE BILL NO. 1460
State of Hawaii
Pursuant to Section 16 of Article III of the Constitution of the State of Hawaii, I am returning herewith, without my approval, Senate Bill No. 1460, entitled "A Bill for an Act Relating to Contracts Entered Into by the Hawaii Tourism Authority."
This bill requires the Hawaii Tourism Authority (HTA) to put certain provisions into its contracts that exceed $6,000,000 or those that are of a level of complexity (as determined by the Executive Director of the HTA) that a reasonably prudent person would expect of a complex contract. Such contract provisions would include language on intellectual property, loyalty to and in support of the HTA, subcontracting only with prior consent, no subcontracting beyond the term of the contract, standards of conduct, confidentiality, best efforts, payments related to deliverables, and performance standards with detailed goals and timelines.
The HTA's Executive Director may suspend these required provisions if the Executive Director notes the reasons for the suspension in a memorandum attached to the contract, and forwards it to the Legislature within ten days.
This bill violates the fundamental government principal of separation of powers, under which the legislative branch of government enacts laws that are then carried out by the executive branch in its discretion. This bill mandates, in minute detail, what provisions must be included in a contract. Such legislative micromanagement of an executive function is inappropriate, especially where there has been no showing of need and the Legislature has acknowledged that "the current executive director of the HTA has strived to include these provisions in all HTA contracts."
Although this bill allows for the suspension of a required provision under certain circumstances, it could still unnecessarily limit HTA's contracting options. Such discretion should properly rest with the executive branch. Moreover, the billís requirement that all such suspensions be reported to the Legislature within ten days is a further example of legislative micromanagement.
For the foregoing reasons, I am returning Senate Bill No. 1460 without my approval.
Governor of Hawaii