Report Title:

Executive Branch Reorganization

 

Description:

Reorganizes certain executive branch agencies by abolishing or transferring various agencies and programs to correspond with H.B. No. 200, H.D. 1, the general appropriations act of 2009.  (SD1)

 


HOUSE OF REPRESENTATIVES

H.B. NO.

1260

TWENTY-FIFTH LEGISLATURE, 2009

H.D. 1

STATE OF HAWAII

S.D. 1

 

 

 

 

 

A BILL FOR AN ACT


 

 

RELATING TO GOVERNMENT.

 

 

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

 


     SECTION 1.  The purpose of this Act is to reorganize certain state executive branch departments to reflect the provisions of the General Appropriations Act of 2009.

PART I

     SECTION 2.  The purpose of this part is to abolish the research and economic analysis division of the department of business, economic development, and tourism and to transfer certain functions of the economic analysis division to the research corporation of the University of Hawaii.

     SECTION 3.  The functions of the following branches within the research and economic analysis division of the department of business, economic development, and tourism shall be transferred to the research corporation of the University of Hawaii:

     (1)  Statistics and data support branch;

     (2)  Economic research branch;

     (3)  Economic information branch; and

     (4)  Department of business, economic development, and tourism library.

     SECTION 4.  All rights, powers, functions, and duties of branches of the research and economic analysis division of the department of business, economic development, and tourism, as listed in section 3, are transferred to the research corporation of the University of Hawaii.

     SECTION 5.  Section 304A-3001, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§304A-3001[]]  Establishment of the research corporation; purpose.  (a)  There is established as a body corporate, the research corporation of the University of Hawaii.  The research corporation shall be a public instrumentality and shall be a part of the University of Hawaii for administrative purposes pursuant to section 26-35.

     (b)  The purposes of the research corporation shall include, but not be limited to, the promotion of all educational, scientific, and literary pursuits by:

     (1)  Encouraging, initiating, aiding, developing, and conducting training, research, and study in the physical, biological, and social sciences, humanities, and all other branches of learning;

     (2)  Encouraging and aiding in the education and training of persons for the conduct of the training, investigations, research, and study;

     (3)  Furnishing of means, methods, and agencies by which the training, investigation, research, and study may be conducted;

     (4)  Assisting in the dissemination of knowledge by establishing, aiding, and maintaining professorships or other staff positions, fellowships, scholarships, publications, and lectures;

     (5)  Engaging in other means of making the benefits of training, investigations, research, and study available to the public; [and]

     (6)  Establishing and updating biennially a self-sufficiency standard that shall incorporate existing methods of calculation and shall reflect, at a minimum, costs relating to housing, food, child care, transportation, health care, clothing and household expenses, federal and state tax obligations, family size, children's ages, geography, and the number of household wage earners.  The corporation shall report to the legislature concerning the self-sufficiency standard no later than twenty days prior to the convening of the regular session of 2011, and every odd-numbered year thereafter.  The recommendations shall address, among other things, the utilization of any federal funding that may be available for the purposes of establishing and updating the self-sufficiency standard;

     (7)  Cooperating with the United States Census Bureau by providing any data required by law; and

    [(6)] (8)  Taking any and all other actions reasonably designed to promote these purposes in the interest of promoting the general welfare of the people of the State."

     SECTION 6.  Section 201-9, Hawaii Revised Statutes, is repealed.

     ["§201-9  Cooperation with other agencies; acceptance and spending of grants; dissemination of findings.  The department of business, economic development, and tourism shall seek the widest possible cooperation, under law, with public and private agencies and the federal government in achieving the purpose of this part.  It may accept funds from individuals and other agencies, public and private, and agree to such lawful and reasonable conditions and terms as the donor of funds may require, all toward the end of furthering the purposes of this part.  The funds may be expended by the department on vouchers approved by its director, or may be transferred to other state agencies for expenditure by them in effectuating the purposes of this part.

     To the end of stimulating cooperation toward the economic development of Hawaii and of disseminating useful information which it obtains, the department shall from time to time publish the results of its research, its findings, and recommendations."]

     SECTION 7.  Section 201-13.8, Hawaii Revised Statutes, is repealed.

     ["§201-13.8  Data or information collection.  (a)  The director, in consultation with all affected governmental agencies, shall assess the need for statistics and other information as to the number, characteristics, needs, and movement of people into, out of, or within Hawaii, including residents, migrants, and visitors, and such other information as the director may deem necessary, for the purposes of sound economic research and analysis.  The director shall be responsible for collecting, analyzing, and disseminating such information to governmental agencies on a timely basis, and is authorized to use any appropriate method to collect the information, including but not limited to conducting an entry and exit census or survey of all individuals entering, leaving, or living within the State, and obtaining data or information acquired by other agencies, both public and private.  All governmental agencies shall cooperate with and assist the director to implement this section.

     (b)  To the extent that it is identifiable to an individual, information obtained by the department or its agents through surveys, questionnaires, or other information gathering efforts shall be held confidential and not disclosed or opened to public inspection, except that such information may be shared with other government agencies as provided in section 92F-19.

     (c)  Public disclosure of information gathered by the department could place businesses at a competitive disadvantage.  Consequently, where disclosure would result in the impairment of the department's ability to obtain such information and the frustration of a legitimate government function, the department may withhold from public disclosure competitively sensitive information including:

     (1)  Completed survey and questionnaire forms;

     (2)  Coding sheets; and

     (3)  Database records of such information.

     (d)  The director may adopt necessary rules pursuant to chapter 91, to administer this section."]

     SECTION 8.  Section 201-19, Hawaii Revised Statutes, is repealed.

     ["[§201-19]  Research and statistics for growth industries.  (a)  The department shall maintain a program for the purpose of:

     (1)  Measuring and analyzing new economic development trends within growth industries such as:

         (A)  Ocean sciences and technology;

         (B)  Biotechnology and life sciences;

         (C)  Astronomy;

         (D)  Technology and information services;

         (E)  Film and creative media;

         (F)  Diversified agriculture;

         (G)  Aquaculture; and

         (H)  Specialty tourism;

     (2)  Providing economic information to policy makers, the public, and the various growth industries under paragraph (1) for use in setting policies, objectives, and goals.  This includes collecting, analyzing, and publishing available data on an annual basis relating but not limited to:

         (A)  Economic diversification, income and income distribution, and issues and measures of the State's natural resources in relation to state sustainable economy goals;

         (B)  The technology sector of the State, including but not limited to defining the sector, estimating employment, and compiling available information on patents registered in Hawaii;

         (C)  Technology change in the economy, including but not limited to technical jobs outside the technology sector, and the changing applications of technology in the private economy and government;

         (D)  The technology-based workforce, including but not limited to management, technical, and professional jobs, and technology education and training;

         (E)  Innovation and enterprise, including but not limited to available information on startup companies, venture capital investment, private and government research and development activities, small business innovation research grants, and technology licensing;

         (F)  The dollar value of research and development conducted at, or in association with, the University of Hawaii;

         (G)  Global connections, including but not limited to diversification of export and visitor markets, foreign business travel, and the manufacturing of export products; and

         (H)  Venture capital investments in Hawaii, including but not limited to the size of local venture investments and their annual growth.

     (b)  The department shall submit to the legislature no later than twenty days prior to the convening of each regular legislative session, a written performance report on the impact of activities of the department and attached agencies that demonstrate their efforts to support, promote, and facilitate the expansion and long-term viability of emerging growth industries including those identified in subsection (a)(1)."]

PART II

     SECTION 9.  The purpose of this part is to abolish the Aloha Tower development corporation and to transfer jurisdiction over and responsibility for the harbors modernization functions of the Aloha Tower development corporation to the harbors division of the department of transportation.

     SECTION 10.  Chapter 206J, Hawaii Revised Statutes, is repealed.

     SECTION 11.  Chapter 266, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§266‑    Partnership between department of transportation, harbors division, and the United States Department of Transportation, Maritime Administration; commercial harbors modernization plan.  (a)  On July 1, 2009, the department of transportation, harbors division, shall assume jurisdiction over the harbors modernization project from the Aloha Tower development corporation, to undertake projects for the commercial harbors modernization plan in subsection (b); provided that the department of transportation shall be the successor in interest to all assets and debts, liabilities, or other obligations incurred by the Aloha Tower development corporation.  All projects, prior to implementation, shall be approved by the director of transportation and the governor.

     For purposes of this subsection, the department of transportation, harbors division, shall seek the input and guidance of the United States Department of Transportation, Maritime Administration, in the management of the harbors modernization project; provided that the department of transportation, harbors division, may enter into an agreement with Maritime Administration for the purpose of infrastructure improvements of harbors statewide.

     (b)  The harbors modernization group established under subsection (d) shall have jurisdiction over harbors projects that shall collectively be known as the commercial harbors modernization plan.  These harbor projects shall be as follows:

     (1)  Honolulu harbor.  Development of infrastructure, expansion of facilities, and tenant relocations, including the development of the new Kapalama container terminal;

     (2)  Kahului harbor.  Development of infrastructure, expansion of facilities, tenant relocations, and acquisition of lands, including the West harbor barge or ferry slip or both, West harbor dredging and breakwater, West harbor cruise terminal, Pier 1 fuel line replacement and upgrade, East harbor breakwater, and Pier 2B strengthening;

     (3)  Hana Harbor.  Development of infrastructure, demolition, as necessary, and expansion of facilities and acquisition of lands;

     (4)  Hilo harbor.  Development of infrastructure, expansion of facilities, tenant relocations, and acquisition of lands, including the Pier 4 interisland cargo terminal;

     (5)  Kawaihae harbor.  Development of infrastructure, expansion of facilities, tenant relocations, acquisition of lands, including the Pier 2 terminal and barge improvements, Pier 2 extension and terminal, and Pier 4 and liquid bulk terminals;

     (6)  Kalaeloa harbor.  Development of infrastructure, expansion of facilities, tenant relocations, and acquisition of lands, including the West harbor infrastructure, Pier 4 dedicated fuel pier, and extension of the fuel line; and

     (7)  Nawiliwili harbor.  Development of infrastructure, expansion of facilities, tenant relocations, and acquisition of lands, including the new multi-use pier.

     (c)  Land disposition matters in projects identified in the commercial harbors modernization plan, including land acquisition, leasing, and conveyance, and acquisition of easements or right-of-ways, shall continue to be under the jurisdiction of the board of land and natural resources pursuant to chapter 171.

     (d)  Except as otherwise provided in this subsection, the harbors modernization group shall be comprised of thirteen members, as follows:

     (1)  The following ex-officio voting members or their designees:

         (A)  The director of transportation;

         (B)  The director of business, economic development, and tourism;

         (C)  The director of finance;

         (D)  The mayor of the city and county of Honolulu and the mayors of the counties of Hawaii, Maui, and Kauai; and

         (E)  The chairperson of the board of land and natural resources; and

     (2)  The following voting members, appointed by the governor pursuant to section 26-34:

         (A)  Two public members from the maritime industry who shall be directly involved with a harbor or offshore mooring facility that is primarily for the movement of commercial cargo, passenger, and fishing vessels entering, leaving, or traveling within the state harbor system, or directly involved with an activity that requires and is directly related to the loading, offloading, storage, or distribution of goods and services by means of seaborne transportation; and

         (B)  Three members from the public at large, for staggered terms pursuant to section 26-34; provided that no member from the public at large shall be an officer or employee of the State or its political subdivisions.

     Except as provided in paragraph (2), regarding staggered terms, the members of the harbors modernization group shall serve for four year terms and shall continue in office until their respective successors have been appointed.  The director of transportation shall serve as the chairperson of the harbors modernization group.

     Members shall serve without compensation, but each member shall be reimbursed for expenses, including travel expenses, incurred in the performance of their duties.

     (e)  The department of transportation may apply any revenues derived from commercial development projects in the state harbors to defray the cost of harbor infrastructure improvements incurred within the State."

     SECTION 12.  Members as of July 1, 2009, of the harbor modernization group, established pursuant to section 206J-5.5, Hawaii Revised Statutes, shall continue their service under the jurisdiction of the department of transportation pursuant to this Act.

     SECTION 13.  All appropriations, records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by the Aloha Tower development corporation with regard to harbor projects and development relating to the functions transferred to the department of transportation shall be transferred with the functions to which they relate.

PART III

     SECTION 14.  The purpose of this part is to abolish the Hawaii occupational safety and health law, with the exception of the hoisting machine operators advisory board and the hoisting machine operators' certification revolving fund, effective on October 1, 2010.

     SECTION 15.  Chapter 371, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part    .  HOISTING MACHINES

     §371‑    Hoisting machine operators advisory board.  (a)  There is created a hoisting machine operators advisory board, which shall be placed in the department for administrative purposes, to be composed of five members to serve without compensation and without reimbursement for expenses.  Members shall be appointed by the governor under section 26-34.

     The board shall adopt rules pursuant to chapter 91 for the certification of hoisting machine operators.

     (b)  The hoisting machine operators advisory board may employ a 0.5 full-time equivalent executive director, without regard to chapters 76 and 89 and may dismiss such person as it finds necessary for the performance of its function and duties.  The board shall have the authority to fix the executive director's compensation.

     §371‑    Hoisting machine operators' certification revolving fund.  (a)  There is established in the state treasury a revolving fund to be known as the hoisting machine operators' certification revolving fund into which shall be deposited all fees, penalties, fines, and interest collected from:

     (1)  Certification of hoisting machine operators;

     (2)  Interest and investment moneys earned on any moneys in the fund; and

     (3)  All moneys received for the fund from any source.

The moneys in the fund may be used to carry out the purposes of this section.  The director of finance shall disburse the moneys in the fund in accordance with instructions from the director.

     (b)  The fund may be used for:

     (1)  Personnel and operating expenses for an executive director for the hoisting machine operators advisory board;

     (2)  All necessary board costs and reimbursements;

     (3)  Preparation and dissemination of public information on hoisting machine operators' certification and training;

     (4)  Preparation of annual reports on certification program activities and accomplishments and on the fund; and

     (5)  Any reimbursements to the state general fund for funds appropriated by the legislature to establish the revolving fund.

     (c)  The director shall submit an annual report to the legislature on the status of the fund, including expenditures and program results, not less than twenty days prior to the convening of each regular session."

     SECTION 16.  Chapter 396, Hawaii Revised Statutes, is repealed.

PART IV

     SECTION 17.  The purpose of this part is to transfer the position of tourism liaison from the department of business, economic development, and tourism to the office of the governor.

     SECTION 18.  Chapter 27, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"PART    .  TOURISM

     §27‑    Special advisor for tourism.  (a)  There is established within the office of the governor a special advisor for tourism who shall be appointed by the governor without regard to section 26-34.  The special advisor shall not be subject to chapters 76 and 89.

     (b)  The special advisor for tourism shall serve as the liaison between the governor and the Hawaii tourism authority, department of business, economic development, and tourism, and other public and private parties on matters relating to tourism."

PART V

     SECTION 19.  The purpose of this part is to transfer the small business regulatory review board, with its statutory duties and powers, from the department of business, economic development, and tourism to the department of commerce and consumer affairs.

     SECTION 20.  Section 201M-5, Hawaii Revised Statutes, is amended to read as follows:

     "§201M-5  Small business regulatory review board; powers.  (a)  There shall be established within the department of [business, economic development, and tourism,] commerce and consumer affairs for administrative purposes[,] a small business regulatory review board to review any proposed new or amended rule or to consider any request from small business owners for review of any rule adopted by a state agency and to make recommendations to the agency or the legislature regarding the need for a rule change or legislation.  For requests regarding county ordinances, the board may make recommendations to the county council or the mayor for appropriate action.

     (b)  The board shall consist of eleven members, who shall be appointed by the governor pursuant to section 26-34.  Nominations to fill vacancies shall be made from names submitted by the review board.  The appointments shall reflect representation of a variety of businesses in the State; provided that no more than two members shall be representatives from the same type of business, and that there shall be at least two representatives from each county.

     (c)  All members of the board shall be either a current or former owner or officer of a business and shall not be an officer or employee of the federal, state, or county government.  A majority of the board shall elect the chairperson.  The chairperson shall serve a term of not more than one year, unless removed earlier by a two-thirds vote of all members to which the board is entitled.

     (d)  A majority of all the members to which the board is entitled shall constitute a quorum to do business, and the concurrence of a majority of all the members to which the board is entitled shall be necessary to make any action of the board valid.

     (e)  In addition to any other powers provided by this chapter, the board may:

     (1)  Adopt any rules necessary to implement this chapter;

     (2)  Organize and hold conferences on problems affecting small business; and

     (3)  Do any and all things necessary to effectuate the purposes of this chapter.

     (f)  The board shall submit an annual report to the legislature twenty days prior to each regular session detailing any requests from small business owners for review of any rule adopted by a state agency, and any recommendations made by the board to an agency or the legislature regarding the need for a rule change or legislation.  The report shall also contain a summary of the comments made by the board to agencies regarding its review of proposed new or amended rules.

     (g)  The expenses of the board shall be funded entirely from the compliance resolution fund; provided that this provision shall not require the board to charge any fee for its service.  The director of commerce and consumer affairs shall include, as part of any other fee charged to a person or organization, an amount with a reasonable nexus to the small business regulatory review activities of the board.

     For the purpose of this subsection, "expenses" includes operating expenses, cash capital expenses, and debt service attributable to the board."

PART VI

     SECTION 21.  The purpose of this part is to transfer the land use commission, with its statutory duties and powers, from the department of business, economic development, and tourism to the department of land and natural resources.

     SECTION 22.  Section 205-1, Hawaii Revised Statutes, is amended to read as follows:

     "§205-1  Establishment of the commission.  There shall be a state land use commission, hereinafter called the commission.  The commission shall consist of nine members who shall hold no other public office and shall be appointed in the manner and serve for the term set forth in section 26‑34.  One member shall be appointed from each of the counties and the remainder shall be appointed at large; provided that one member shall have substantial experience or expertise in traditional Hawaiian land usage and knowledge of cultural land practices.  The commission shall elect its chairperson from one of its members.  The members shall receive no compensation for their services on the commission, but shall be reimbursed for actual expenses incurred in the performance of their duties.  Six affirmative votes shall be necessary for any boundary amendment.

     The commission shall be a part of the department of [business, economic development, and tourism] land and natural resources for administration purposes[, as provided for in section 26‑35].

     The commission may engage employees necessary to perform its duties, including administrative personnel and an executive officer.  The executive officer shall be appointed by the commission and the executive officer's position shall be exempt from civil service.  Departments of the state government shall make available to the commission such data, facilities, and personnel as are necessary for it to perform its duties.  The commission may receive and utilize gifts and any funds from the federal or other governmental agencies.  It shall adopt rules guiding its conduct, maintain a record of its activities and accomplishments, and make recommendations to the governor and to the legislature through the governor."

PART VII

     SECTION 23.  The purpose of this part is to transfer the high technology development corporation and high technology innovation corporation, with their statutory duties and powers, from the department of business, economic development, and tourism to the University of Hawaii.

     SECTION 24.  Section 206M-2, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

     "(a)  There is established the high technology development corporation, which shall be a public body corporate and politic and an instrumentality and agency of the State.  The development corporation shall be placed within the [department of business, economic development, and tourism] University of Hawaii for administrative purposes, pursuant to section 26-35.  The purpose of the development corporation shall be to facilitate the growth and development of the commercial high technology industry in Hawaii.  Its duties shall include, but not be limited to:

     (1)  Developing and encouraging industrial parks as high technology innovation centers and developing or assisting with the development of projects within or outside of industrial parks, including participating with the private sector in such development;

     (2)  Providing financial and other support and services to Hawaii-based high technology companies;

     (3)  Collecting and analyzing information on the state of commercial high technology activity in Hawaii;

     (4)  Promoting and marketing Hawaii as a site for commercial high technology activity; and

     (5)  Providing advice on policy and planning for technology-based economic development.

     (b)  The governing body of the development corporation shall consist of a board of directors having eleven voting members.  Seven of the members shall be appointed by the governor for staggered terms pursuant to section 26-34.  Six of the appointed members shall be from the general public and selected on the basis of their knowledge, interest, and proven expertise in, but not limited to, one or more of the following fields:  finance, commerce and trade, corporate management, marketing, economics, engineering, and telecommunications, and other high technology fields.  The other appointed member shall be selected from the faculty of the University of Hawaii.  All appointed members of the board shall continue in office until their respective successors have been appointed.  The [director of business, economic development, and tourism,] president of the University of Hawaii, the director of finance, an appointed member from the board of the Hawaii strategic development corporation, and an appointed member from the board of the natural energy laboratory of Hawaii authority, or their designated representatives, shall serve as ex officio voting members of the board.  The [director of business, economic development, and tourism] president of the University of Hawaii shall serve as the chairperson until such time as a chairperson is elected by the board from the membership.  The board shall elect such other officers as it deems necessary."

     SECTION 25.  Chapter 304A, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§304A‑     University of Hawaii high technology special fund.  (a)  There is established the University of Hawaii high technology special fund, into which shall be deposited, except as otherwise provided by sections 206M-15, 206M-15.6, and 206M-17, all moneys, fees, and equity from tenants, qualified persons, or other users of the development corporation's industrial parks, projects, other leased facilities, and other services and publications.  The moneys in the fund shall be expended for the administration and operation of the high technology development corporation, the operation, maintenance, and management of its industrial parks, projects, facilities, services, and publications, and the expenses in administering the special purpose revenue bonds of the high technology development corporation or in carrying out its project agreements.

     (b)  Subsection (a) shall not require the expenses of the development corporation to be exclusively funded from the moneys, fees, and equity deposited into the special fund.  Other moneys of the University of Hawaii may be appropriated and expended for the development corporation.  The president of the University of Hawaii may include, as part of any other fee charged to a person or organization, an amount with a reasonable nexus to high technology development activities of the corporation."

     SECTION 26.  Section 206M-15.5, Hawaii Revised Statutes, is repealed.

     SECTION 27.  Section 206M-51, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  There is established, as a body corporate, the high technology innovation corporation.  The high technology innovation corporation shall be a public, not-for-profit organization under section 501(c)(3) of the Internal Revenue Code of 1986, as amended.  The high technology innovation corporation shall be [attached to the department of business, economic development, and tourism] placed within the University of Hawaii for administrative purposes."

PART VIII

     SECTION 28.  The purpose of this part is to transfer the office of planning, with its statutory duties and powers, from the department of business, economic development, and tourism to the department of land and natural resources.

     SECTION 29.  Section 225M-2, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  There is established within the department of [business, economic development, and tourism an] land and natural resources, the office of planning.  The head of the office shall be known as the director of the office of planning, referred to in this chapter as director.  The director shall have:  training in the field of urban or regional planning, public administration, or other related fields; experience in programs or services related to governmental planning; and experience in a supervisory, consultative, or administrative capacity.  The director shall be nominated by the governor and, by and with the advice and consent of the senate, appointed by the governor without regard to chapter 76, and shall be compensated at a salary level set by the governor.  The director shall be included in any benefit program generally applicable to the officers and employees of the State.  The director shall retain such staff as may be necessary for the purposes of this chapter, in conformity with chapter 76.  The director shall report to the director of business, economic development, and tourism and shall not be required to report directly to any other principal executive department."

     SECTION 30.  Section 205-3.1, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

     "(d)  The county land use decision-making authority shall serve a copy of the application for a district boundary amendment to the land use commission and the [department of business, economic development, and tourism] office of planning and shall notify the commission and [the department] office of the time and place of the hearing and the proposed amendments scheduled to be heard at the hearing.  A change in the state land use district boundaries pursuant to this subsection shall become effective on the day designated by the county land use decision-making authority in its decision.  Within sixty days of the effective date of any decision to amend state land use district boundaries by the county land use decision-making authority, the decision and the description and map of the affected property shall be transmitted to the land use commission and the [department of business, economic development, and tourism] office of planning by the county planning director."

     SECTION 31.  Section 205-5.2, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

     "(d)  After the board has completed a county-by-county assessment of all areas with geothermal potential or after any subsequent update or review, the board shall compare all areas showing geothermal potential within each county, and shall propose areas for potential designation as geothermal resource subzones based upon a preliminary finding that the areas are those sites which best demonstrate an acceptable balance between the factors set forth in subsection (b).  Once a proposal is made, the board shall conduct public hearings pursuant to this subsection, notwithstanding any contrary provision related to public hearing procedures.  Contested case procedures are not applicable to these hearings.

     (1)  Hearings shall be held at locations which are in close proximity to those areas proposed for designation.  A public notice of hearing, including a description of the proposed areas, an invitation for public comment, and a statement of the date, time, and place where persons may be heard shall be given and mailed no less than twenty days before the hearing.  The notice shall be given on three separate days statewide and in the county in which the hearing is to be held.  Copies of the notice shall be mailed to the [department of business, economic development, and tourism,] office of planning, to the planning commission and planning department of the county in which the proposed areas are located, and to all owners of record of real estate within, and within one thousand feet of, the area being proposed for designation as a geothermal resource subzone.  The notification shall be mailed to the owners and addresses as shown on the current real property tax rolls at the county real property tax office.  Upon that action, the requirement for notification of owners of land is completed.  For the purposes of this subsection, notice to one co-owner shall be sufficient notice to all co-owners;

     (2)  The hearing shall be held before the board, and the authority to conduct hearings shall not be delegated to any agent or representative of the board.  All persons and agencies shall be afforded the opportunity to submit data, views, and arguments either orally or in writing.  The [department of business, economic development, and tourism] office of planning and the county planning department shall be permitted to appear at every hearing and make recommendations concerning each proposal by the board; and

     (3)  At the close of the hearing, the board may designate areas as geothermal resource subzones or announce the date on which it will render its decision.  The board may designate areas as geothermal resource subzones only upon finding that the areas are those sites which best demonstrate an acceptable balance between the factors set forth in subsection (b).  Upon request, the board shall issue a concise statement of its findings and the principal reasons for its decision to designate a particular area."

PART IX

     SECTION 32.  The purpose of this part is to the transfer the natural energy laboratory of Hawaii authority, with its statutory duties and powers, from the department of business, economic development, and tourism to the University of Hawaii.

     SECTION 33.  Section 227D-2, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

     "(a)  There is established the natural energy laboratory of Hawaii authority, which shall be a body corporate and politic and an instrumentality and agency of the State.  The authority shall be placed within the [department of business, economic development, and tourism] University of Hawaii for administrative purposes[, pursuant to section 26-35].  The purpose of the natural energy laboratory of Hawaii authority shall be to facilitate research, development, and commercialization of natural energy resources and ocean-related research, technology, and industry in Hawaii and to engage in retail, commercial, or tourism activities that will financially support that research, development, and commercialization at a research and technology park in Hawaii.  Its duties shall include:

     (1)  Establishing, managing, and operating facilities that provide sites for:

         (A)  Research and development;

         (B)  Commercial projects and businesses utilizing natural resources, such as ocean water or geothermal energy;

         (C)  Compatible businesses engaged in scientific and technological investigations, or retail, commercial, and tourism activities; and

         (D)  Businesses or educational facilities that support the primary projects and activities;

     (2)  Providing support, utilities, and other services to facility tenants and government agencies;

     (3)  Maintaining the physical structure of the facilities;

     (4)  Promoting and marketing these facilities;

     (5)  Promoting and marketing the reasonable utilization of available natural resources;

     (6)  Supporting ocean research and technology development projects that support national and state interests, use facilities and infrastructure in Hawaii, and foster potential commercial development; and

     (7)  Engaging in retail, commercial, and tourism activities that are not related to facilitating research, development, and commercialization of natural energy resources in Hawaii; provided that all income derived from these activities shall be deposited in the natural energy laboratory of Hawaii authority special fund.

     (b)  The governing body of the authority shall consist of a board of directors having eleven voting members.  Three members from the general public shall be appointed by the governor for staggered terms pursuant to section 26-34, except that one of these members shall be a resident of the county of Hawaii.  The members shall be selected on the basis of their knowledge, interest, and proven expertise in, but not limited to, one or more of the following fields:  finance, commerce and trade, corporate management, marketing, economics, engineering, energy management, real estate development, property management, aquaculture, and ocean science.  The chairperson and secretary of the research advisory committee shall serve on the board.  The [director of business, economic development, and tourism,] president of the University of Hawaii, the chairperson of the board of land and natural resources, the [president of the University of Hawaii,] director of business, economic development, and tourism, the mayor of the county of Hawaii, an appointed member from the board of the high technology development corporation, and an appointed member from the board of the Hawaii strategic development corporation, or their designated representatives, shall serve as ex officio, voting members of the board.  The [director of business, economic development, and tourism] president of the University of Hawaii shall serve as the chairperson until such time as a chairperson is elected by the board from the membership.  The board shall elect other officers as it deems necessary."

PART X

     SECTION 34.  The purpose of this part is to transfer the measurement standards program, with its statutory authority, from the department of agriculture to the department of commerce and consumer affairs.

     SECTION 35.  Chapter 486, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§486-     Funding of measurement standards branch.  The expenses of the measurement standards branch shall be funded entirely from the compliance resolution fund.  For this purpose, "expenses" includes operating expenses, cash capital expenses, and debt service attributable to the branch.

     The department shall establish sufficient fees to comply with this section."

     SECTION 36.  Section 486-1, Hawaii Revised Statutes, is amended as follows:

     1.  By adding a new definition of "director" to read:

     ""Director" means the director of commerce and consumer affairs."

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

     ""Department" means department of [agriculture.] commerce and consumer affairs."

     3.  By amending the definition of "inspector" to read:

     ""Inspector" means any employee or official of the department authorized by the [board] director to administer and enforce the provisions of this [law.] chapter."

     4.  By repealing the definition of "administrator".

     [""Administrator" means the administering officer of the quality assurance division, or any qualified person so designated by the chairperson."]

     5.  By repealing the definition of "board".

     [""Board" means board of agriculture."]

     6.  By repealing the definition of "chairperson".

     [""Chairperson" includes the chairperson of the board of agriculture and when specifically designated by the chairperson for the purpose of effectuating this chapter, the deputy to the chairperson."]

     SECTION 37.  Section 486-7, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  These rules may include:

     (1)  Standards of net measure, and reasonable standards of fill for any package;

     (2)  The technical and reporting procedures to be followed, the report and record forms to be used by persons subject to the provisions of this chapter, and the marks of approval and rejection to be used by the administrator, inspectors, and measurement standards personnel in the discharge of their official duties;

     (3)  Exemptions from the sealing, labeling, marking, or other requirements of the respective parts of this chapter;

     (4)  The voluntary registration of service persons and service agencies for commercial weighing and measuring devices.  These rules may include, but are not limited to, provisions for registration fees, period of registration, requirements for test equipment, privileges and responsibilities of a voluntary registrant, reports required, qualification requirements, examinations to be administered, certificates of registration, and means for revocation of registration;

     (5)  Schedules and fees for licensing measuring devices;

     (6)  Schedules and fees for calibrating or testing measurement standards, and registration of the products covered by such measurement standards;

     (7)  Specifications, tolerances, and other technical requirements with respect to the packaging, registering, handling, storing, advertising, labeling, dispensing, and selling of petroleum products;

     (8)  Specifications, tolerances, and other technical requirements for weighing and measuring devices;

     (9)  Practices to assure that amounts of commodities or services sold are determined in accordance with good commercial practice and are so determined and represented as to be accurate and informative to all parties at interest;

    (10)  Requirements for type evaluation;

    (11)  Definitions, applicability, use, units, standards, and tolerances relating to the International System of Units; [and]

    (12)  Requirements for the weighing of coffee before shipment out-of-state and certification of the weight of the coffee; and

   [(12)] (13)  Such other rules as the board deems necessary for the enforcement of this chapter."

     SECTION 38.  Section 141-4, Hawaii Revised Statutes, is repealed.

     ["§141-4  Weights of coffee; rules.  The department of agriculture may make rules respecting the weighing of coffee prior to its shipment to points outside the State, and providing for the certification of weights thereof.  Further, a reasonable schedule of fees to defray the expense of administering this section shall be established by the department, which fees shall be collected and deposited with the state director of finance to the credit of the general fund; provided that the department shall consult the appropriate industries, organizations, and agencies prior to the promulgation of the rules."]

     SECTION 39.  The following sections of the Hawaii Revised Statutes are amended by replacing the term "board" with the term "department" wherever the former occurs:  486-2, 486-4, 486-6, 486-7, 486-31, 486-36, 486-53, 486-54, 486-56, 486-105, 486-108, 486-109, 486-118, 486-122, 486-132, 486-135, and 486-137.

     SECTION 40.  (a)  Section 486-33, Hawaii Revised Statutes, is amended by replacing the term "chairperson" with the term "director" wherever the former occurs.

     (b)  The following sections of the Hawaii Revised Statutes are amended by replacing the term "administration" with the term "director" wherever the former occurs:  486-4, 486-5, 486-6, 486-23, 486-24, 486-31, 486-36, 486-54, 486-78, 486-79, 486-80, 486-81, 486-83, and 486-118.

PART XI

     SECTION 41.  The purpose of this part is to transfer the arts and culture development branch within the department of business, economic development, and tourism to the state foundation on culture and the arts, which is placed within the department of accounting and general services for administrative purposes.

     SECTION 42.  All rights, powers, functions, and duties of the arts and culture branch of the department of business, economic development, are transferred to the state foundation on culture and the arts.

PART XII

     SECTION 43.  The purpose of this part is to transfer the film industry branch within the department of business, economic development, and tourism to the Hawaii tourism authority.

     SECTION 44.  Chapter 201B, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part    .  HAWAII TELEVISION AND FILM DEVELOPMENT

     §201B-A  Definitions.  As used in this part:

     "Applicant" means a person applying for a grant or venture capital investment from the authority under this part.

     "Board" means the Hawaii television and film development board.

     "Eligible Hawaii project" or "project" means an entertainment project in which at least seventy-five per cent of the budget for the production costs, excluding salaries and costs for the producer, director, writer, screenplay, and actors in the project, is dedicated for the purchase or lease of goods or services from a vendor or supplier who is located and doing business in the State.

     "Fund" means the Hawaii television and film development special fund.

     "Venture capital investment" means any of the following investments in a project:

     (1)  Common or preferred stock and equity securities without a repurchase requirement for at least five years;

     (2)  A right to purchase stock or equity securities;

     (3)  Any debenture, whether or not convertible or having stock purchase rights, which is subordinated, together with security interests against the assets of the borrower, by their terms to all borrowings of the borrower from other institutional lenders, and that is for a term of not less than three years, and that has no part amortized during the first three years; and

     (4)  General or limited partnership interests.

     §201B‑B  Hawaii television and film development board.  (a)  There is established the Hawaii television and film development board.  The board shall be attached to the Hawaii tourism authority for administrative purposes only.  The board shall administer the grant and venture capital investment programs and the Hawaii television and film development special fund established under this part.  The board shall also assess and consider the overall viability and development of the television and film industries and make recommendations to appropriate state or county agencies.

     (b)  The board shall be composed of nine members, four of whom shall be appointed by the governor pursuant to section 26‑34, and all of whom shall serve four-year staggered terms.  One of the governor's appointments shall be made from a list of nominees submitted by the president of the senate and another appointment shall be made from a list of nominees submitted by the speaker of the house of representatives.  The four appointed members shall possess a current working knowledge of the film, television, or entertainment industry.  The executive director of the Hawaii tourism authority and the chairs of the four county film commissions, or their equivalent, shall serve as ex officio voting members, who may be represented on the board by designees.

     The chairperson and vice chairperson of the board shall be selected by the board by majority vote.  Five members shall constitute a quorum, whose affirmative vote shall be necessary for all actions by the board.  The members shall serve without compensation but shall be reimbursed for expenses, including travel expenses, necessary for the performance of their duties.

     (c)  The film industry branch development manager shall serve as the executive secretary of the board.

     (d)  The board may adopt rules pursuant to chapter 91 to effectuate the purposes of this part.

     §201B‑C  Hawaii television and film development special fund.  (a)  There is established in the state treasury the Hawaii television and film development special fund into which shall be deposited:

     (1)  Appropriations by the legislature;

     (2)  Donations and contributions made by private individuals or organizations for deposit into the fund;

     (3)  Grants provided by governmental agencies or any other source; and

     (4)  Any profits or other amounts received from venture capital investments.

     (b)  The fund shall be used by the board to assist in, and provide incentives for, the production of eligible Hawaii projects that are in compliance with criteria and standards established by the board in accordance with rules adopted by the board pursuant to chapter 91.  In particular, the board shall adopt rules to provide for the implementation of the following programs:

     (1)  A grant program.  The board shall adopt rules pursuant to chapter 91 to provide conditions and qualifications for grants.  Applications for grants shall be made to the board and shall contain such information as the board shall require by rules adopted pursuant to chapter 91.  At a minimum, the applicant shall agree to the following conditions:

         (A)  The grant shall be used exclusively for eligible Hawaii projects;

         (B)  The applicant shall have applied for or received all applicable licenses and permits;

         (C)  The applicant shall comply with applicable federal and state laws prohibiting discrimination against any person on the basis of race, color, national origin, religion, creed, sex, age, or physical handicap;

         (D)  The applicant shall comply with other requirements as the board may prescribe;

         (E)  All activities undertaken with funds received shall comply with all applicable federal, state, and county statutes and ordinances;

         (F)  The applicant shall indemnify and save harmless the State of Hawaii and its officers, agents, and employees from and against any and all claims arising out of or resulting from activities carried out or projects undertaken with funds provided hereunder, and procure sufficient insurance to provide this indemnification if requested to do so by the department;

         (G)  The applicant shall make available to the board all records the applicant may have relating to the project, to allow the board to monitor the applicant's compliance with the purpose of this chapter; and

         (H)  The applicant, to the satisfaction of the board, shall establish that sufficient funds are available for the completion of the project for the purpose for which the grant is awarded; and

     (2)  A venture capital program.  The board shall adopt rules pursuant to chapter 91 to provide conditions and qualifications for venture capital investments in eligible Hawaii projects.  The program may include a written agreement between the borrower and the board, as the representative of the State, that as consideration for the venture capital investment made under this part, the borrower shall share any royalties, licenses, titles, rights, or any other monetary benefits that may accrue to the borrower pursuant to terms and conditions established by the board by rule pursuant to chapter 91.  Venture capital investments may be made on such terms and conditions as the board shall determine to be reasonable, appropriate, and consistent with the purposes and objectives of this part.

     §201B-D  Inspection of premises and records.  The board shall have the right to inspect, at reasonable hours, the plant, physical facilities, equipment, premises, books, and records of any applicant in connection with the processing of a grant to the applicant."

     SECTION 45.  Part IX of chapter 201, Hawaii Revised Statutes, is repealed.

PART XIII

     SECTION 46.  The purpose of this part is to conform various sections of the Hawaii Revised Statutes to the amendments made under more than one of the previous parts.

     SECTION 47.  Section 26-18, Hawaii Revised Statutes, is amended to read as follows:

     "§26-18  Department of business, economic development, and tourism.  [(a)]  The department of business, economic development, and tourism shall be headed by a single executive to be known as the director of business, economic development, and tourism.

     The department shall undertake statewide business and economic development activities, undertake energy development and management, [provide economic research and analysis,] plan for the use of Hawaii's ocean resources, and encourage the development and promotion of industry and international commerce through programs established by law.

     [(b)]  The following are placed in the department of business, economic development, and tourism for administrative purposes as defined by section 26-35:  [Aloha Tower development corporation,] Hawaii community development authority, Hawaii housing finance and development corporation, [high technology development corporation, land use commission, natural energy laboratory of Hawaii authority,] and any other boards and commissions as shall be provided by law.

     [The department of business, economic development, and tourism shall be empowered to establish, modify, or abolish statistical boundaries for cities, towns, or villages in the State and shall publish, as expeditiously as possible, an up-to-date list of cities, towns, and villages after changes to statistical boundaries have been made.]"

     SECTION 48.  Section 201-2, Hawaii Revised Statutes, is amended to read as follows:

     "§201-2  General objective, functions, and duties of department.  It shall be the objective of the department of business, economic development, and tourism to make broad policy determinations with respect to economic development in the State and to stimulate through research and demonstration projects those industrial and economic development efforts that offer the most immediate promise of expanding the economy of the State.  The department shall endeavor to gain an understanding of those functions and activities of other governmental agencies and of private agencies that relate to the field of economic development.  [It shall,] The department, at all times, shall encourage initiative and creative thinking in harmony with the objectives of the department.

     [The department of business, economic development, and tourism shall have sole jurisdiction over the land use commission under chapter 205, state planning under chapter 225M, and the Hawaii State Planning Act under chapter 226.  Due to the inherently interdependent functions of development, planning, and land use, these functions shall not be transferred by executive order, directive, or memorandum, to any other department, nor shall these functions be subject to review or approval by any other department.]"

     SECTION 49.  Section 201-3, Hawaii Revised Statutes, is amended to read as follows:

     "§201-3  Specific research and promotional functions of the department.  Without prejudice to its general functions and duties the department of business, economic development, and tourism shall have specific functions in the following areas:

     (1)  Industrial development.  The department shall determine through technical and economic surveys the profit potential of new or expanded industrial undertakings; develop through research projects and other means new and improved industrial products and processes; promote studies and surveys to determine consumer preference as to design and quality and to determine the best methods of packaging, transporting, and marketing the State's industrial products; disseminate information to assist the present industries of the State, to attract new industries to the State, and to encourage capital investment in present and new industries in the State; assist associations of producers and distributors of industrial products to introduce these products to consumers; and make grants or contracts as may be necessary or advisable to accomplish the foregoing;

    [(2)  Land development.  The department shall encourage the most productive use of all land in the State in accordance with a general plan developed by the department; encourage the improvement of land tenure practices on leased private lands; promote an informational program directed to landowners, producers of agricultural and industrial commodities, and the general public regarding the most efficient and most productive use of the lands in the State; and make grants or contracts as may be necessary or advisable to accomplish the foregoing;

     (3)] (2)  Credit development.  The department shall conduct a continuing study of agricultural and industrial credit needs; encourage the development of additional private and public credit sources for agricultural and industrial enterprises; promote an informational program to acquaint financial institutions with agricultural and industrial credit needs and the potential for agricultural and industrial expansion, and inform producers of agricultural and industrial products as to the manner in which to qualify for loans; and make grants or contracts as may be necessary or advisable to accomplish the foregoing; and

    [(4)] (3)  Promotion.  The department shall disseminate information developed for or by the department pertaining to economic development to assist present industry in the State, attract new industry and investments to the State, and assist new and emerging industry with good growth potential or prospects in jobs, exports, and new products.  The industrial and economic promotional activities of the department may include the use of literature, advertising, demonstrations, displays, market testing, lectures, travel, motion picture and slide films, and other promotional and publicity devices as may be appropriate[;

     (5)  Tourism research and statistics.  The department shall maintain a program of research and statistics for the purpose of:

         (A)  Measuring and analyzing tourism trends;

         (B)  Providing information and research to assist in the development and implementation of state tourism policy;

          (C)  Encouraging and arranging for the conduct of tourism research and information development through voluntary means or through contractual services with qualified agencies, firms, or persons; and

         (D)  Providing tourism information to policy makers, the public, and the visitor industry.  This includes:

              (i)  Collecting and publishing visitor-related data including visitor arrivals, visitor characteristics and expenditures;

             (ii)  Collecting and publishing hotel-related statistics including the number of units available, occupancy rates, and room rates;

            (iii)  Collecting and publishing airline-related data including seat capacity and number of flights;

             (iv)  Collecting information and conducting analyses of the economic, social, and physical impacts of tourism on the State;

              (v)  Conducting periodic studies of the impact of ongoing marketing programs of the Hawaii tourism authority on Hawaii's tourism industry, employment in Hawaii, state taxes, and the State's lesser known and underutilized destinations; and

             (vi)  Cooperate with the Hawaii tourism authority and provide it with the above information in a timely manner; and

     (6)  Self-sufficiency standard.  The department shall establish and update biennially a self-sufficiency standard that shall incorporate existing methods of calculation, and shall reflect, at a minimum, costs relating to housing, food, child care, transportation, health care, clothing and household expenses, federal and state tax obligations, family size, children's ages, geography, and the number of household wage earners.  The department shall report to the legislature concerning the self-sufficiency standard no later than twenty days prior to the convening of the regular session of 2009, and every odd-numbered year thereafter.  The recommendations shall address, among other things, the utilization of any federal funding that may be available for the purposes of establishing and updating the self-sufficiency standard.

     The department shall be the central agency to coordinate film permit activities in the State]."

PART XIV

     SECTION 50.  The purpose of this part is to provide for the transition of various state agencies and programs that are transferred under parts I, II, IV, V, VI, VII, VIII, IX, X, XI, and XII of this Act.

     SECTION 51.  (a)  All rights, powers, functions, and duties of the agencies, divisions, or programs transferred under parts I, II, IV, V, VI, VII, VIII, IX, X, XI, and XII are transferred to the successor agencies as provided under those parts.

     (b)  All officers and employees whose functions are transferred by this Act shall be transferred with their functions and shall continue to perform their regular duties upon their transfer, subject to the state personnel laws and this Act; except that an officer or employee whose position is no longer authorized under the General Appropriations Act of 2009 shall not be transferred.

     (c)  No officer or employee who has been transferred pursuant to subsection (b) and who has tenure shall suffer any loss of salary, seniority, prior service credit, vacation, sick leave, or other employee benefit or privilege as a consequence of this Act.

     (d)  If a position held by an officer or employee having tenure is no longer authorized under the General Appropriations Act of 2009, the movement of an officer or employee to another position shall be subject to the appropriate collective bargaining agreement.

     SECTION 52.  All rules, policies, procedures, guidelines, and other material adopted or developed by an agency, division, or program transferred under parts I, II, IV, V, VI, VII, VIII, IX, X, XI, and XII shall be transferred to the successor agency and shall remain in full force and effect until amended or repealed by the successor agency.

     SECTION 53.  All records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, or acquired or held by an agency, division, or program transferred under parts I, II, IV, V, VI, VII, VIII, IX, X, XI, and XII shall be transferred to the successor agency.

     SECTION 54.  (a)  Unless specifically required by this Act, this Act shall not affect the membership or term of any appointed member of a board or other policy-making or advisory body transferred under parts I, II, IV, V, VI, VII, VIII, IX, X, XI, and XII.  Such a member shall continue to serve on the board or other body for the member's term without necessity of reappointment.

     (b)  Subsection (a) shall not apply to any change made by parts II and VII to the ex officio membership of the board of the Aloha tower development corporation and high technology development corporation.

     SECTION 55.  The legislative reference bureau shall review this Act for the purpose of making recommendations as to the appropriate placement of parts or chapters of the Hawaii Revised Statutes affected by this Act.  The legislative reference bureau shall submit its findings and recommendations, accompanied by any necessary proposed legislation, to the legislature by January 1, 2010.

     SECTION 56.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

PART XV

     SECTION 57.  In codifying the new sections added by section 44 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

     SECTION 58.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 59.  This Act shall take effect on July 1, 2090.