HOUSE OF REPRESENTATIVES

H.B. NO.

105

TWENTY-SIXTH LEGISLATURE, 2011

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to out-of-state offices.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  Chapter 201, part VI, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§201-    Management and financial audit.  Beginning July 1, 2011, the auditor shall conduct at least every two years a management and financial audit of the out-of-state offices.  The auditor may contract with a third party to conduct the audit.  The department shall reimburse the auditor for costs incurred in conducting the audit.  The auditor shall submit an audit report, including any recommendations, to the legislature no later than twenty days prior to the convening of the regular session immediately following the conclusion of each audit."

     SECTION 2.  Section 201-85, Hawaii Revised Statutes, is amended to read as follows:

     "§201-85  Exemptions.  The department is authorized to hire employees necessary to staff its out-of-state offices subject to chapter 76 and legislative appropriations.  The department may also appoint such other employees exempt from chapter 76 as may be necessary to administer the affairs of its out-of-state offices.  The initial appointment shall not exceed three years, during which time the department shall submit to the legislature a request for approval prior to continuation of the position. The department shall set the duties, responsibilities, salaries, holidays, vacations, leaves, hours of work, and working conditions for these employees.  Subject to the approval of the director of budget and finance, the department may be exempted from the following state laws only to the extent necessary for the conduct of its business in operating out-of-state offices:

     (1)  Sections 36-27 and 36-30, relating to special fund transfers and reimbursements to the general fund;

     (2)  Chapter 36, relating to management of state funds;

     (3)  Chapter 38, relating to deposits of public funds;

    [(4)  Chapter 40, relating to audit and accounting, except that the department shall comply with section 40-81;

     (5)] (4)  Chapter 76, relating to civil service;

    [(6)  Chapter 77, relating to compensation;

     (7)] (5)  Section 78-1, relating to public employment, except when expressly hiring personnel subject to section 78-1; and

    [(8)] (6)  Section 171-30, relating to acquisition of real property.

     All moneys necessary for the establishment and operation of out-of-state offices shall be allocated by the legislature through appropriations out of the state general fund.  The department shall include in its budgetary request for each upcoming fiscal period, the amounts necessary to effectuate the purposes of this section."

     SECTION 3.  The office of the auditor shall conduct an audit of out-of-state offices pursuant to this Act and shall report its findings and recommendations to the legislature no later than twenty days prior to the convening of the 2012 regular session.

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2011.

 

INTRODUCED BY:

_____________________________

 

 


 



 

Report Title:

Out-of-state Offices; Audit

 

Description:

Beginning 7/1/11, requires the auditor to conduct at least every two years a management and financial audit of the department of business, economic development, and tourism out-of-state offices.  Requires reports to the legislature.  Repeals exemption from audit and accounting requirements for out-of-state offices.

 

 

 

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