Blind Vendors; Private Lawyers

Allows the Randolph-Sheppard revolving account to be used to hire
private attorneys for the state committee of blind vendors under
certain conditions.  Appropriates $30,000 from the non-federal
source subaccount of the Randolph-Sheppard revolving account to
the state committee's bank account for FY2000-2001.

HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  The legislature finds that opportunities for the
 2 blind and visually handicapped must be provided to enable them to
 3 become self-sufficient and independent.  This can be achieved if
 4 they are empowered to make decisions and to care for themselves,
 5 such as empowering the state committee of blind vendors with
 6 discretionary authority over the funds generated from vending
 7 operations.  These funds are part of the Randolph-Sheppard
 8 revolving account and involve no state or federal moneys.
 9      The purpose of this Act is to establish an account into
10 which is deposited $30,000 each fiscal year from the
11 Randolph-Sheppard revolving account, from which the state
12 committee of blind vendors may expend moneys to hire attorneys if
13 the attorney general is unable or unwilling to provide
14 representation, and expend funds for the purposes of the
15 revolving account.
16      SECTION 2.  Chapter 347, Hawaii Revised Statutes, is amended
17 by adding a new section to be appropriately designated and to
18 read as follows:
19      "347-     Hiring outside counsel.  (a)  Notwithstanding

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 1 section 28-8.3, the state committee of blind vendors may hire
 2 private attorneys; provided that:
 3      (1)  The state committee of blind vendors first seek
 4           representation by the attorney general, and the
 5           attorney general is:
 6           (A)  Unwilling to provide representation to the state
 7                committee of blind vendors; or
 8           (B)  A court determines that the representation of the
 9                state committee of blind vendors by the attorney
10                general is directly adverse to another client of
11                the attorney general; or
12      (2)  The state committee of blind vendors finds that the
13           attorney general's representation of the committee is
14           inadequate.
15      (b)  For purposes of subsection (a)(1)(A), the attorney
16 general shall determine if the attorney general is unwilling to
17 provide representation within thirty days upon receipt of the
18 request for representation."
19      SECTION 3.  Section 28-8.3, Hawaii Revised Statutes, is
20 amended by amending subsection (a) to read as follows:
21      "(a)  No department of the State other than the attorney
22 general may employ or retain any attorney, by contract or
23 otherwise, for the purpose of representing the State or the

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                                     H.B. NO.           

 1 department in any litigation, rendering legal counsel to the
 2 department, or drafting legal documents for the department;
 3 provided that the foregoing provision shall not apply to the
 4 employment or retention of attorneys:
 5      (1)  By the public utilities commission, the labor and
 6           industrial relations appeals board, and the Hawaii
 7           labor relations board;
 8      (2)  By any court or judicial or legislative office of the
 9           State;
10      (3)  By the legislative reference bureau;
11      (4)  By any compilation commission that may be constituted
12           from time to time;
13      (5)  By the real estate commission for any action involving
14           the real estate recovery fund;
15      (6)  By the contractors license board for any action
16           involving the contractors recovery fund;
17      (7)  By the trustees for any action involving the travel
18           agency recovery fund;
19      (8)  By the office of Hawaiian affairs;
20      (9)  By the department of commerce and consumer affairs for
21           the enforcement of violations of chapters 480 and 485;
22     (10)  As grand jury counsel;
23     (11)  By the Hawaiian home lands trust individual claims

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                                     H.B. NO.           

 1           review panel;
 2     (12)  By the Hawaii health systems corporation or any of its
 3           facilities;
 4     (13)  By the auditor;
 5     (14)  By the office of ombudsman;
 6     (15)  By the insurance division;
 7     (16)  By the University of Hawaii; [or]
 8     (17)  By the state committee of blind vendors, as provided
 9           under section 347-   ; or
10    [(17)] (18)  By a department, in the event the attorney
11           general, for reasons deemed by the attorney general
12           good and sufficient, declines, to employ or retain an
13           attorney for a department; provided that the governor
14           thereupon waives the provision of this section."
15      SECTION 4.  Section 347-12.5, Hawaii Revised Statutes, is
16 amended to read as follows:
17      "[[]347-12.5[]]  Randolph-Sheppard revolving account.(a)
18 There is established within the state treasury the Randolph-
19 Sheppard revolving account.  The revolving account shall be used
20 by the department of human services for:
21      (1)  The provision of the following benefits for blind
22           vendors:
23           (A)  A retirement or pension plan;

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                                     H.B. NO.           

 1           (B)  Health insurance; and
 2           (C)  Sick and vacation leave;
 3      (2)  The maintenance and replacement of equipment used in
 4           the blind vending program;
 5      (3)  The purchase of new equipment to be used in the blind
 6           vending program; and
 7      (4)  The provision of management services, which shall
 8           include[,] but not be limited to:
 9           (A)  The hiring of consultants;
10           (B)  The sponsoring of training seminars;
11           (C)  Transportation;
12           (D)  Per diem for vendors to attend meetings of the
13                state committee of blind vendors;
14           (E)  Services for the state committee of blind vendors
15                including the hiring of private attorneys pursuant
16                to section 347-   ; and
17           (F)  Other costs related to the blind vending program.
18      (b)  Income from vending [machines] operations, such as
19 operations at an airport, on federal, state, and county
20 properties that are within reasonable proximity to, and in direct
21 competition with, a blind vendor may be deposited into the
22 revolving account and then disbursed to the blind vendor.
23      (c)  The revolving account shall consist of funds derived

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                                     H.B. NO.           

 1 from:
 2      (1)  Vending [machine income generated by] operations on
 3           federal, state, and county [operations;] properties;
 4      (2)  Any other legally accepted source of income; and
 5      (3)  Donations[.];
 6 provided that, beginning on July 1, 2000, any moneys deposited in
 7 the revolving account that are derived from vending operations
 8 shall be identified as to whether the income is generated from
 9 federal, state, or county vending operations, and all moneys from
10 federal vending operations shall be segregated into a federal
11 source subaccount and all other moneys shall be segregated into a
12 non-federal source subaccount.
13      (d)  Notwithstanding any law to the contrary, the state
14 committee of blind vendors may spend not more than $30,000 from
15 the non-federal source subaccount for each fiscal year for the
16 purposes of this section.  At the beginning of each fiscal year,
17 if appropriated by the legislature, the director of human
18 services or the director's designee shall transfer $30,000 from
19 the non-federal source subaccount to an interest-bearing account
20 in a federally-insured financial institution that shall be:
21      (1)  Selected by the state committee of blind vendors; and
22      (2)  In the name of the state committee of blind vendors.
23      The department of human services shall report to the

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 1 legislature no later than sixty days following the close of each
 2 fiscal year on activities and current balance of the revolving
 3 account.
 4      (e)  The transfer of moneys under subsection (d) shall not
 5 affect the expenditure of funds from the revolving account by the
 6 department of human services."
 7      SECTION 5.  There is appropriated out of the non-federal
 8 source subaccount of the Randolph-Sheppard revolving account the
 9 sum of $30,000, or so much thereof as may be necessary for fiscal
10 year 2000-2001, to enable the director of human services to
11 transfer the appropriate amount to the account of the blind
12 vendors pursuant to section 347-12.5(d), Hawaii Revised Statutes,
13 for the uses listed in section 347-12.5(a), Hawaii Revised
14 Statutes.  Unexpended and unencumbered amounts on June 30, 2001
15 in the account of the blind vendors pursuant to section
16 347-12.5(d), Hawaii Revised Statutes, shall be returned to the
17 non-federal source subaccount of the Randolph-Sheppard revolving
18 account.
19      The sum appropriated shall be expended by the department of
20 human services.
21      SECTION 6.  If any provision of this Act or application
22 thereof to any person or circumstance is held invalid or
23 determined to be contrary to any federal law or regulation, the

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                                     H.B. NO.           

 1 invalidity or such determination shall not affect other
 2 provisions or applications of the Act which can be given effect
 3 without the provision or application held invalid or determined
 4 to be contrary to federal law or regulation, and to this end the
 5 provisions of this Act are severable.
 6      SECTION 7.  Statutory material to be repealed is bracketed.
 7 New statutory material is underscored.
 8      SECTION 8.  This Act shall take effect upon its approval;
 9 provided that section 5 shall take effect on July 1, 2000.
11                           INTRODUCED BY:  _______________________