Bill Text: HI SB294 | 2010 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: State Departments; DBEDT

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2009-05-11 - Carried over to 2010 Regular Session. [SB294 Detail]

Download: Hawaii-2010-SB294-Amended.html

Report Title:

Executive Branch Reorganization

 

Description:

Reorganizes certain executive branch agencies to correspond with HB 200, HD 1, the general appropriations act of 2009.  (HD1 PROPOSED)

 


THE SENATE

S.B. NO.

294

TWENTY-FIFTH LEGISLATURE, 2009

S.D. 2

STATE OF HAWAII

H.D. 1

 

Proposed

 

 

A BILL FOR AN ACT

 

 

relating to state departments.

 

 

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.  More specifically, this Act accomplishes the following:

     (1)  Transfers the research and economic analysis division to the department of commerce and consumer affairs from the department of business, economic development, and tourism;

     (2)  Transfers the creative media division to the foundation on culture and the arts from the department of business, economic development, and tourism;

     (3)  Transfers the special advisor for tourism to the office of the governor from the department of business, economic development, and tourism;

     (4)  Transfers the small business regulatory review board to the department of commerce and consumer affairs from the department of business, economic development, and tourism;

     (5)  Transfers the Hawaii housing finance and development corporation to the department of human services from the department of business, economic development, and tourism;

     (6)  Transfers the land use commission to the department of land and natural resources from the department of business, economic development, and tourism;

     (7)  Transfers the Hawaii community development authority to the department of land and natural resources from the department of business, economic development, and tourism;

     (8)  Transfers the Aloha tower development corporation to the department of transportation from the department of business, economic development, and tourism;

     (9)  Transfers the high technology development corporation and high technology innovation corporation to the department of commerce and consumer affairs from the department of business, economic development, and tourism;

    (10)  Transfers the foreign-trade zone program to the department of transportation from the department of business, economic development, and tourism;

    (11)  Transfers the office of planning to the department of land and natural resources from the department of business, economic development, and tourism;

    (12)  Transfers the natural energy laboratory of Hawaii authority to the university of Hawaii from the department of business, economic development, and tourism;

    (13)  Transfers the state health planning and development program to the department of health proper from the state health planning and development agency, which is administratively placed within the department of health; and

    (14)  Transfers the measurement standards program to the department of commerce and consumer affairs from the department of agriculture.

PART I.

RESEARCH AND ECONOMIC ANALYSIS DIVISION

TRANSFER TO DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS

     SECTION 2.  The purpose of this part is to effectuate the transfer of the research and economic analysis division, with its statutory duties, from the department of business, economic development, and tourism to the department of commerce and consumer affairs.

     SECTION 3.  The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"CHAPTER    

RESEARCH AND ECONOMIC ANALYSIS

     §   -1  Research and economic analysis division; established.  There is established the research and economic analysis division within the department of commerce and consumer affairs.  Under the direction and supervision of the director of commerce and consumer affairs, the division shall perform the duties established under this chapter and any other law.

     §   -2  Definitions.  For the purpose of this chapter:

     "Department" means the department of commerce and consumer affairs.

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

     "Division" means the research and economic analysis division.

     §   -3  Funding of division.  The expenses of the division shall be funded entirely from the compliance resolution fund; provided that this provision shall not require the expenses of the division to be exclusively funded from the fees, grants, or other revenues collected by the division.  The director may include as part of any other fee charged by the department to a person or organization an amount with a reasonable nexus to the economic research and analysis activities of the division.

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

     §   -4  General duties of the division.  The division shall:

     (1)  Provide plans, analyses, and policy recommendations on economic issues;

     (2)  Conduct and report on basic research into Hawaii's economy;

     (3)  Collect, compile, interpret, and publish data and statistics on aspects of business activity, the economy, and demographic characteristics of the State;

     (4)  Develop and maintain a statewide statistical reporting system;

     (5)  Assist state agencies in developing and analyzing plans and objectives for the development of Hawaii's economy, criteria to measure the accomplishment of the objectives, programs through which the objectives are to be attained, and financial requirements to accomplish the objectives;

     (6)  Analyze plans for future projects for the development of Hawaii's economy;

     (7)  Assist state agencies in the coordination of research and information gathering and analysis activities;

     (8)  Coordinate the conduct of research with and dissemination of information to the federal government, Hawaii's county governments, other state governments, and foreign governments for the development of Hawaii's economy; and

     (9)  Develop programs to encourage private and public research projects which will result in the development of Hawaii's economy.

     §   -5  Specific research duties of the division.  The division shall:

     (1)  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;

         (E)  Collecting and publishing:

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

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

            (iii)  Airline-related data, including seat capacity and number of flights;

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

         (G)  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

         (H)  Cooperating with the Hawaii tourism authority and providing it with the information collected under this subparagraph in a timely manner;

     (2)  Measure and analyze 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;

     (3)  Provide economic information to policy makers, businesses, and the public for use in setting policies, objectives, and goals.  This duty shall include collecting, analyzing, and publishing available data relating to the following:

         (A)  Economic diversification, innovation, and enterprise;

         (B)  The technology sector of the State, technology change in the economy, and technology-based workforce;

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

         (D)  Global connections, including diversification of export and visitor markets, foreign business travel, and manufacturing of export products; and

         (E)  Venture capital investments in Hawaii, including the size of local venture investments and their annual growth.

     (4)  Establish and update biennially a self-sufficiency standard that incorporates existing methods of calculation and reflects, 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 division shall submit a report to the legislature on 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.

     §   -6  Data or information collection.  (a)  The division, in consultation with affected public 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 division shall be responsible for collecting, analyzing, and disseminating such information to public agencies on a timely basis and may use any appropriate method to collect the information, including 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 public and private agencies.

     (b)  To the extent that it is identifiable to an individual, information obtained by the division 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 public agencies as provided in section 92F-19.

     (c)  Public disclosure of information gathered by the department may place businesses at a competitive disadvantage.  Consequently, where disclosure would result in the impairment of the division's ability to obtain such information and the frustration of a legitimate government function, the division 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 division shall operate a research library that makes available to public agencies and the general public the non-confidential information collected by the division.

     §   -7  Statistical boundaries.  The division may establish, modify, or abolish statistical boundaries for cities, towns, or villages in the State and publish an up-to-date list of cities, towns, and villages after changes to statistical boundaries have been made.

     §   -8  Contracts.  (a)  The division may contract with qualified public agencies and private persons in pursuit of its duties; provided that preferences shall be given to qualified offerors or bidders:

     (1)  Doing business or residing in the State; and

     (2)  Agreeing to match division funds with the offerors' or bidders' funds, equipment, materials, or services.

     (b)  All contracts shall be approved in writing by the director and shall specify the name of the contractor, the nature of the work to be performed, the manner in which funds may be expended, and such data as the director may require.

     §   -9  Reports.  (a)  Through the director, the division shall file, before the convening of each regular session of the legislature, a report of its activities for the preceding fiscal year with the governor and legislature.

     (b)  Upon the written request of the director, any state executive agency engaged in activities relating to economic development shall supply to the division such reports on those activities as the director deems necessary to effectuate its functions.

     §   -10  Fees.  (a)  The director may establish and charge fees for services and documents of the division; provided that no such fees shall be charged to any state executive agency, the legislature, or the judiciary.

     (b)  All proceeds of the fees shall be deposited into the compliance resolution fund.

     §   -11  Rules.  The director may adopt rules in accordance with chapter 91 for the purposes of this part."

     SECTION 4.  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 5.  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 6.  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.

CREATIVE MEDIA DIVISION

TRANSFER TO FOUNDATION ON CULTURE AND THE ARTS

     SECTION 7.  The purpose of this part is to effectuate the transfer of the creative media division, with its statutory duties, from the department of business, economic development, and tourism to the foundation on culture and the arts.

     SECTION 8.  Chapter 9, Hawaii Revised Statutes, is amended by adding two new parts to be designated and to read as follows:

"PART   .  CREATIVE MEDIA DIVISION

     §9-A  Creative media division; established.  There is established the creative media division under the foundation on culture and the arts.  Under the direction and supervision of the executive director of the foundation, the division shall perform the duties established under this chapter and any other law.

     §9-B  Definitions.  In addition to the definitions under section 9-1, "division" means the creative media division for the purpose of this part.

     §9-C  General duties of division.  The division shall promote the growth of and work as an advocate for the film, television, and digital media production industry in Hawaii, the artistic and cultural resources of Hawaii, and the products that are made in Hawaii.  The division shall support and implement programs, projects, and activities that result in:

     (1)  An internationally recognized and self-sustaining film, television, and digital arts industry;

     (2)  An arts and culture industry that is a vibrant and sustainable sector of Hawaii's economy; and

     (3)  An expansion of domestic and foreign markets for Hawaii's products.  In the performance of this duty, the division shall cooperate and coordinate with the department of agriculture.

     §9-D  Consolidated film and television production permit processing.  (a)  The division shall consult with state and county agencies in order to identify sites that may be used for making visually recorded productions under terms and conditions as may be determined by the state or county agency having jurisdiction over the sites.

     (b)  The division may accept an application from any person who proposes to make a motion picture, television show, television commercial, or other visually recorded production at one or more sites on state or county lands, whether or not set aside under section 171-11.

     (c)  The applicant shall identify the sites to be covered by the permit and provide other information as may be required by the division.

     (d)  The division may approve and issue a permit to film at any of the sites identified by the appropriate state or county agency under subsection (a).  If any site requested for use by the applicant is not identified under subsection (a), the division shall consult with the appropriate state or county agency having jurisdiction over the site to obtain a permit.  If the matter of a permit cannot be resolved in this manner, the division shall refer the application to the appropriate state or county agency to obtain a permit.

     (e)  The division may make changes to and extensions of any approved permits so long as the changes and extensions do not conflict with the policies, terms, and conditions set forth by the agency having jurisdiction over the site in question.

     (f)  The division may establish memoranda of agreement or adopt rules to implement the intent and purposes of this section.

     (g)  Nothing in this section shall be construed as waiving the authority of any county or the state department of transportation to require a person to obtain a permit from the county or department where the production takes place on or from a public highway.

     (h)  A vessel engaged in temporary use for film production purposes in accordance with a film permit issued by the division shall not be considered to be a "commercial vessel" within the meaning of section 200-9, 200-10, or 200-39; provided that:

     (1)  The period of temporary use does not exceed fourteen hours per day, five days per week, excluding weekends, and for a period not to exceed thirty calendar days; and

     (2)  The division may make allowances to include weekends for film production purposes due to inclement weather conditions during the weekday period.

     (i)  The division shall charge separate fees for the application and issuance of a permit under this section.  Revenues from the fee shall be deposited into the general fund.

     §9-E  Hawaii film studio.  The division shall be responsible for the operation and maintenance of the Hawaii film studio.

PART  .  HAWAII TELEVISION AND FILM DEVELOPMENT

     §9-F  Definitions.  As used in this part:

     "Applicant" means a person applying for a grant or venture capital investment from the board 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.

     §9-G  Hawaii television and film development board.  (a)  There is established the Hawaii television and film development board.  The board shall be part of the division 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 and the chairs of the four county film commissions or its 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 creative media division chief or the chief's designee 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.

     §9-H  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.

     §9-I  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 9.  Section 235-17, Hawaii Revised Statutes, is amended as follows:

     1.  By amending subsection (f) to read:

     "(f)  To receive the tax credit, the taxpayer shall first prequalify the production for the credit by registering with the [department of business, economic development, and tourism] creative media division of the foundation on culture and the arts during the development or preproduction stage.  Failure to comply with this provision may constitute a waiver of the right to claim the credit."

     2.  By amending subsections (h) and (i) to read:

     "(h)  Every taxpayer claiming a tax credit under this section for a qualified production shall, no later than ninety days following the end of each taxable year in which qualified production costs were expended, submit a written, sworn statement to the [department of business, economic development, and tourism,] creative media division identifying:

     (1)  All qualified production costs as provided by subsection (a), if any, incurred in the previous taxable year;

     (2)  The amount of tax credits claimed pursuant to this section, if any, in the previous taxable year; and

     (3)  The number of total hires versus the number of local hires by category (i.e., department) and by county.

     (i)  The [department of business, economic development, and tourism] creative media division shall:

     (1)  Maintain records of the names of the taxpayers and qualified productions thereof claiming the tax credits under subsection (a);

     (2)  Obtain and total the aggregate amounts of all qualified production costs per qualified production and per qualified production per taxable year; and

     (3)  Provide a letter to the director of taxation specifying the amount of the tax credit per qualified production for each taxable year that a tax credit is claimed and the cumulative amount of the tax credit for all years claimed.

     Upon each determination required under this subsection, the [department of business, economic development, and tourism] creative media division shall issue a letter to the taxpayer, regarding the qualified production, specifying the qualified production costs and the tax credit amount qualified for in each taxable year a tax credit is claimed.  The taxpayer for each qualified production shall file the letter with the taxpayer's tax return for the qualified production to the department of taxation.  Notwithstanding the authority of the [department of business, economic development, and tourism] creative media division under this section, the director of taxation may audit and adjust the tax credit amount to conform to the information filed by the taxpayer."

     SECTION 10.  Section 201-14, Hawaii Revised Statutes, is repealed.

     ["§201-14  Consolidated film permit processing.  (a)  The department shall consult with state and county agencies in order to identify sites that can be used for making visually recorded productions under terms and conditions as may be determined by the state or county agency having jurisdiction over the sites.

     (b)  The department may accept an application from any person who proposes to make a motion picture, television show, television commercial, or other visually recorded production at one or more sites on state or county lands, whether or not set aside under section 171-11.

     (c)  The applicant shall identify the sites to be covered by the permit and provide other information as may be required by the department.

     (d)  The department may approve and issue a permit to film at any of the sites identified by the appropriate state or county agency under subsection (a).  If any site requested for use by the applicant is not identified under subsection (a), the department shall consult with the appropriate state or county agency having jurisdiction over the site to obtain a permit.  If the matter of a permit cannot be resolved in this manner, the department shall refer the application to the appropriate state or county agency to obtain a permit.

     (e)  The department is authorized to make changes to, and extensions of, any approved permits so long as the changes and extensions do not conflict with the policies, terms, and conditions set forth by the agency having jurisdiction over the site in question.

     (f)  The department may establish memoranda of agreement or adopt rules to implement the intent and purposes of this section.

     (g)  Nothing in this section shall be construed as waiving the authority of any county or the department of transportation of the State to require a person to obtain a permit from the department or county where the production takes place on or from a public highway.

     (h)  A vessel engaged in temporary use for film production purposes in accordance with a film permit issued by the department shall not be considered to be a "commercial vessel" within the meaning of section 200-9, 200-10, or 200-39; provided that:

     (1)  The period of temporary use does not exceed fourteen hours per day, five days per week, excluding weekends, and for a period not to exceed thirty calendar days; and

     (2)  The department may make allowances to include weekends for film production purposes due to inclement weather conditions during the weekday period."]

     SECTION 11.  Chapter 201, part IX, is repealed.

PART III.

SPECIAL ADVISOR FOR TOURISM

TRANSFER TO OFFICE OF THE GOVERNOR

     SECTION 12.  The purpose of this part is to transfer the position of special advisor for tourism from the department of business, economic development, and tourism to the office of the governor.

     SECTION 13.  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 77 and 89.

     (b)  The special advisor 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 IV.

HAWAII HOUSING FINANCE AND DEVELOPMENT CORPORATION

TRANSFER TO DEPARTMENT OF HUMAN SERVICES

     SECTION 14.  The purpose of this part is to effectuate the transfer of the Hawaii housing finance and development corporation, with its statutory duties, from the department of business, economic development, and tourism to the department of human services.

     SECTION 15.  Section 201H-2, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  There is established the Hawaii housing finance and development corporation to be placed within the department of [business, economic development, and tourism] human services for administrative purposes only.  The corporation shall be a public body and a body corporate and politic."

PART V.

SMALL BUSINESS REGULATORY REVIEW BOARD

TRANSFER TO DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS

     SECTION 16.  The purpose of this part is to effectuate the transfer of the small business regulatory review board, with its statutory duties, from the department of business, economic development, and tourism to the department of commerce and consumer affairs.

     SECTION 17.  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 shall include as part of any other fee charged by the department 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.

LAND USE COMMISSION

TRANSFER TO DEPARTMENT OF LAND AND NATURAL RESOURCES

     SECTION 18.  The purpose of this part is to effectuate the transfer of the land use commission, with its statutory duties, from the department of business, economic development, and tourism to the department of land and natural resources.

     SECTION 19.  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.

HAWAII COMMUNITY DEVELOPMENT AUTHORITY

TRANSFER TO DEPARTMENT OF LAND AND NATURAL RESOURCES

     SECTION 20.  The purpose of this part is to effectuate the transfer of the Hawaii community development authority, with its statutory duties, from the department of business, economic development, and tourism to the department of land and natural resources.

     SECTION 21.  Section 206E-3, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

     "(a)  There is established the Hawaii community development authority, which shall be a body corporate and a public instrumentality of the State, for the purpose of implementing this chapter.  The authority shall be placed within the department of [business, economic development, and tourism] land and natural resources for administrative purposes.

     (b)  The authority shall consist of thirteen voting members.  The director of finance, the director of [business, economic development, and tourism,] land and natural resources, the comptroller, and the director of transportation, or their respective designated representatives shall serve as ex officio, voting members.  One member shall be appointed by the governor from a list of not less than three prospective appointees submitted by the president of the senate, and one member shall be appointed by the governor from a list of not less than three prospective appointees submitted by the speaker of the house of representatives.  Seven members shall be appointed by the governor for staggered terms pursuant to section 26-34; provided that four members shall be appointed at large and, initially, three members, hereinafter referred to as county members, shall be selected from a list of ten prospective appointees recommended by the local governing body of the county in which the initial designated district is situated; and provided further that when vacancies occur in any of the three positions for which the members were selected from a list of county recommendations, the governor shall fill such vacancies on the basis of one from a list of four recommendations, two from a list of seven recommendations, or three from a list of ten recommendations.  The list of recommendations shall be made by the local governing body of the county.  Of the nine members appointed either by the governor from the lists provided by the president of the senate and speaker of the house, at-large by the governor, or as county members recommended by the local governing body of the county in which the initial designated district is situated, at least two members shall represent small businesses and shall be designated as the small business representatives on the board whose purpose, among other things, is to vote on matters before the board that affect small businesses.  The small business representatives shall be owners or active managers of a small business with its principal place of operation located within the physical boundaries of the initial designated district.  Notwithstanding section 84-14(a), the small business representatives shall not be prohibited from voting on any matter concerning any district under the board's jurisdiction; provided that the matter is not limited to solely benefiting the specific interest of that member and the matter concerns broader interests within the district.  If an additional district is designated by the legislature, the total membership of the authority shall be increased as prescribed above by the appointment of three additional members, except as provided for in section 206E-191.  Notwithstanding section 92-15, a majority of all members shall constitute a quorum to do business, and the concurrence of a majority of all members shall be necessary to make any action of the authority valid; except that, on any matter relating solely to a specific community development district, the members representing districts other than that specific community development district shall neither vote, nor shall they be counted to constitute a quorum, and concurrence shall be required of a majority of that portion of the authority made up of all ex officio voting members, members at large, and county and district members representing the district for which action is being proposed for such action to be valid.  All members shall continue in office until their respective successors have been appointed and qualified.  Except as herein provided, no member appointed under this subsection shall be an officer or employee of the State or its political subdivisions.

     For [[]purposes[]] of this section, "small business" means a business which is independently owned and which is not dominant in its field of operation."

PART VIII.

ALOHA TOWER DEVELOPMENT CORPORATION

TRANSFER TO DEPARTMENT OF TRANSPORTATION

     SECTION 22.  The purpose of this part is to effectuate the transfer of the Aloha tower development corporation, with its statutory duties, from the department of business, economic development, and tourism to the department of transportation.

     SECTION 23.  Section 206J-4, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

     "(a)  There is established the Aloha Tower development corporation, which shall be a public body corporate and politic, a public instrumentality, and an agency of the State.  The development corporation shall be placed within the department of [business, economic development, and tourism] transportation for administrative purposes, pursuant to section 26-35.

     (b)  Except as provided in section 206J-5.5, the development corporation shall consist of a board of directors having seven voting members.  The [director of business, economic development, and tourism, the] director of transportation, the chairperson of the board of land and natural resources, and the mayor of the city and county of Honolulu, or their respective designated representatives, shall serve as ex officio voting members.  [Three] Four members from the public at large shall be appointed by the governor for staggered terms pursuant to section 26-34 and shall also serve as voting members; provided that no public member shall be an officer or employee of the State or its political subdivisions.  All members shall continue in office until their respective successors have been appointed.  The board, by a majority vote, shall elect a chairperson from within its membership."

     SECTION 24.  Notwithstanding any other law to the contrary, the governor shall appoint a fourth member from the public at large to the board of directors of the Aloha tower development corporation as soon as possible after the effective date of this Act.  The member may serve as an appointee on an interim basis until either confirmed or rejected by the senate.

     The director of business, economic development, and tourism shall no longer be a member of the board of directors of the Aloha tower development corporation on the effective date of this Act.

PART IX.

HIGH TECHNOLOGY DEVELOPMENT CORPORATION

AND

HIGH TECHNOLOGY INNOVATION CORPORATION

TRANSFER TO DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS

     SECTION 25.  The purpose of this part is to effectuate the transfer of the high technology development corporation and high technology innovation corporation, with their statutory duties, from the department of business, economic development, and tourism to the department of commerce and consumer affairs .

     SECTION 26.  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] commerce and consumer affairs 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,] commerce and consumer affairs, 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] commerce and consumer affairs 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 27.  Section 206M-15.5, Hawaii Revised Statutes, is amended to read as follows:

     "§206M-15.5  High technology special [fund.] account.  (a)  There is established [in the state treasury a fund to be known as] within the compliance resolution fund the high technology special [fund,] account, into which shall be deposited, except as otherwise provided by [section] 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[; provided that the total amount of moneys in the fund shall not exceed $3,000,000 at the end of any fiscal year].  [All] The moneys in the [fund are appropriated for the purposes of and] special account shall be expended [by] for the administration and operation of the development corporation [for], the operation, maintenance, and management of its industrial parks, projects, facilities, services, and publications, and [to pay] the expenses in administering the special purpose revenue bonds of the 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 account.  Other moneys in the compliance resolution fund may be appropriated and expended for the development corporation.  The director of commerce and consumer affairs may include as part of any other fee charged by the director to a person or organization an amount with a reasonable nexus to high technology development activities of the corporation."

     SECTION 28.  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] commerce and consumer affairs for administrative purposes."

PART X.

FOREIGN-TRADE ZONE PROGRAM

TRANSFER TO DEPARTMENT OF TRANSPORTATION

     SECTION 29.  The purpose of this part is to effectuate the transfer of the foreign-trade zone program and division, with the relevant statutory provisions, from the department of business, economic development, and tourism to the department of transportation.

     SECTION 30.  Chapter 212, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§212-     State foreign-trade zone; administration by department of transportation.  The foreign-trade zone program, under which "the public corporation" means the State of Hawaii, shall be administered and operated by the department of transportation."

     SECTION 31.  Section 212-5.5, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§212-5.5[]]  Foreign-trade zone; jurisdiction.  Anything to the contrary notwithstanding, the department of [business, economic development, and tourism] transportation shall have jurisdiction and administrative authority over the area in the vicinity of Piers 1 and 2 currently being used as a foreign-trade zone.  This area is defined as all of parcels 2 and 3-A of the Forrest Avenue subdivision, as shown on the map filed in the bureau of conveyances of the State of Hawaii, as file plan 2335, and lot A-1, as shown on map 2, filed in the office of the assistant registrar of the land court of the State of Hawaii with land court application 1328; provided that all existing easements affecting and appurtenant to the parcels to be deleted from the Kakaako community development district boundaries shall not be affected by this change."

     SECTION 32.  Section 212-10, Hawaii Revised Statutes, is repealed.

     ["§212-10  Personnel.  Permanent employees currently not in civil service and who are employed by the State to operate and maintain the foreign trade zone in the department of business, economic development, and tourism shall be converted to permanent civil service status within the meaning of chapter 76 without the necessity of examination and shall be accorded all the rights, benefits, and privileges attributable thereto.  Such rights and privileges shall include seniority, prior service credit, vacation and sick leave credits, and other benefits and privileges accorded employees with civil service status.  Employees so converted shall not suffer a reduction in their pay rate."]

     SECTION 33.  The repeal of section 212-10, Hawaii Revised Statutes, shall not affect the civil service status or employment rights and privileges of any employee who was converted to civil service pursuant to that section.  The legislature finds that the section is no longer operative and, accordingly, should be repealed.

PART XI.

OFFICE OF PLANNING

TRANSFER TO DEPARTMENT OF LAND AND NATURAL RESOURCES

     SECTION 34.  The purpose of this part is to effectuate the transfer of the office of planning, with its statutory duties, from the department of business, economic development, and tourism to the department of land and natural resources.

     SECTION 35.  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 36.  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 37.  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 XII.

NATURAL ENERGY LABORATORY OF HAWAII AUTHORITY

TRANSFER TO UNIVERSITY OF HAWAII

     SECTION 38.  The purpose of this part is to effectuate the transfer of the natural energy laboratory of Hawaii authority, with its statutory duties, from the department of business, economic development, and tourism to the University of Hawaii.

     SECTION 39.  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 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 XIII.

STATE HEALTH PLANNING AND RESOURCE DEVELOPMENT PROGRAM

TRANSFER TO DEPARTMENT OF HEALTH

     SECTION 40.  The purpose of this part is to effectuate the transfer of the administration of the state health planning and resource development program from the state health planning and development agency to the department of health.

     SECTION 41.  Chapter 323D, Hawaii Revised Statutes, is amended by adding a new section to part II to be appropriately designated and to read as follows:

     "§323D-__  Appointment of independent officer when proposed health care facility of department of health under consideration.  When a proposed health care facility of the department of health is under consideration for the issuance of or exemption from a certificate of need, the statewide council shall appoint an independent officer to make a decision on the certificate or need or exemption in place of the department.  The independent officer may be appointed from the public or private sector.  The independent officer shall be compensated for the service from available appropriation to the department of health."

     SECTION 42.  Section 321-225, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The advisory committee shall be composed of twenty members:  three nonvoting ex-officio members, who shall be the director of transportation, the adjutant general, and the [administrator of the state health planning and development agency,] chairperson of the statewide health coordinating council, or the designated representatives thereof, and seventeen members representing all counties of the State who shall be appointed by the governor subject to section 26-34 as follows:

     (1)  Five members who shall be physicians experienced in the conduct and delivery of emergency medical services; provided that at least two shall be engaged in the practice of emergency medicine and be board-eligible or board-certified by the American Board of Emergency Medicine, and provided further that at least one physician shall be engaged in the practice of pediatrics and be board-eligible or board-certified by the American Board of Pediatrics;

     (2)  Four members who shall be consumers of health care and who shall have no connection with or relationship to the health care system of the State and who shall be representative of all counties;

     (3)  Four members of allied health professions related to emergency medical services; and

     (4)  Four members, one from each county, who shall be mobile intensive care technicians or emergency medical technicians engaged in the practice of pre-hospital emergency medical service.

The members of the advisory committee shall serve without compensation, but shall be reimbursed for necessary expenses incurred in the performance of their duties, including travel expenses.  The chairperson of the advisory committee shall be elected by the members from among their numbers.  A majority of the members of the advisory committee shall constitute a quorum for the conduct of business of the advisory committee.  A majority vote of the members present at a meeting at which a quorum is established shall be necessary to validate any action of the committee."

     SECTION 43.  Section 323D-2, Hawaii Revised Statutes, is amended as follows:

     1.  By adding a new definition of "department" to be appropriately inserted and to read:

     ""Department" means the department of health."

     2.  By amending the definition of "organized ambulatory health care facility" to read:

     ""Organized ambulatory health care facility" means a facility not part of a hospital, which is organized and operated to provide health services to outpatients.  The [state agency] department of health may adopt rules to establish further criteria for differentiating between the private practice of medicine and organized ambulatory health care facilities."

     3.  By repealing the definition of "state agency".

     [""State agency" means the state health planning and development agency established in section 323D-11."]

     SECTION 44.  Section 323D-11, Hawaii Revised Statutes, is amended to read as follows:

     "§323D-11  State health planning and development [agency.] program.  There is established [within] under the department of health [for administrative purposes only], the state health planning and development [agency.  The state agency shall be headed by an administrator who shall be appointed by the governor subject to section 26-34.  The state agency shall administer the state health planning and cost containment activities as required by law.] program.  The department shall administer and operate the program as provided under this chapter."

     SECTION 45.  Section 323D-12.6, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§323D-12.6[]]  State health planning and development special fund; created; deposits; expenditures; fees.  (a)  There is established within the state treasury, to be administered by the [state] department of health [planning and development agency], the state health planning and development special fund into which shall be deposited all moneys collected under chapter 323D.

     (b)  Moneys in the special fund shall be expended by the [state] department of health [planning and development agency to assist in offsetting program expenses of the agency.] for the administration and operation of the state health planning and development program of this chapter.

     (c)  The [agency] department shall adopt rules in accordance with chapter 91 to establish reasonable fees for the purposes of this chapter."

     SECTION 46.  Section 323D-17, Hawaii Revised Statutes, is amended to read as follows:

     "§323D-17  Public hearings required.  In the preparation of the state health services and facilities plan or amendments to the state health services and facilities plan, the [state agency and the statewide council] department shall conduct a public hearing on the proposed plan or the amendments and shall comply with the provisions for notice of public hearings in chapters 91 and 92."

     SECTION 47.  Section 323D-47, Hawaii Revised Statutes, is amended to read as follows:

     "§323D-47  Request for reconsideration.  The [state agency] department may provide by rules adopted in conformity with chapter 91 for a procedure by which any person may, for good cause shown, request in writing a public hearing [before a reconsideration committee] by the department for purposes of reconsideration of the [agency's] department's decision.  [The reconsideration committee shall consist of the administrator of the state agency and the chairpersons of the statewide council, the review panel, the plan development committee of the statewide council, and the appropriate subarea health planning council.  The administrator shall be the chairperson of the reconsideration committee.]  A request for a public hearing shall be deemed [by the reconsideration committee] to have shown good cause, if:

     (1)  It presents significant, relevant information not previously considered by the [state agency;] department;

     (2)  It demonstrates that there have been significant changes in factors or circumstances relied upon by the [state agency] department in reaching its decision;

     (3)  It demonstrates that the [state agency] department has materially failed to follow its adopted procedures in reaching its decision;

     (4)  It provides such other bases for a public hearing as the [state agency] department determines constitutes good causes; or

     (5)  The decision of the [administrator] department differs from the recommendation of the statewide council.

To be effective a request for such a hearing shall be received within ten working days of the [state agency] department's decision.  [A decision of the reconsideration committee following a public hearing under this section shall be considered a decision of the state agency for purposes of section 323D-44.]

     The department may reconsider its decision after the public hearing within the period established by rule."

     SECTION 48.  Section 323D-50, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  Any person who violates any provision of this chapter or rules adopted under this chapter, with respect to the [agency's] department's requests for reporting, may be subject to an administrative penalty not to exceed $2,000 for each seven-day period or fraction thereof that the violation continues.  The [administrator of the state agency] department may impose the administrative penalty specified in this section by order; provided that no penalty shall be assessed unless the person charged shall have been given notice and an opportunity for a hearing pursuant to chapter 91.  The administrative penalty contained in the notice of finding of violation shall become a final order unless, within twenty days of receipt of the notice, the person charged makes a written request for a hearing.  For any judicial proceeding to recover the administrative penalty imposed, the [administrator] department need only show that notice was given, a hearing was held or the time granted for requesting a hearing has expired without such a request, the administrative penalty was imposed, and that the penalty remains unpaid."

     SECTION 49.  Section 323D-54, Hawaii Revised Statutes, is amended to read as follows:

     "§323D-54  Exemptions from certificate of need requirements.  Nothing in this part or rules with respect to the requirement for certificates of need applies to:

     (1)  Offices of physicians, dentists, or other practitioners of the healing arts in private practice as distinguished from organized ambulatory health care facilities, except in any case of purchase or acquisition of equipment attendant to the delivery of health care service and the instruction or supervision for any private office or clinic involving a total expenditure in excess of the expenditure minimum;

     (2)  Laboratories, as defined in section 321-11(12), except in any case of purchase or acquisition of equipment attendant to the delivery of health care service and the instruction or supervision for any laboratory involving a total expenditure in excess of the expenditure minimum;

     (3)  Dispensaries and first aid stations located within business or industrial establishments and maintained solely for the use of employees; provided such facilities do not regularly provide inpatient or resident beds for patients or employees on a daily twenty-four-hour basis;

     (4)  Dispensaries or infirmaries in correctional or educational facilities;

     (5)  Dwelling establishments, such as hotels, motels, and rooming or boarding houses that do not regularly provide health care facilities or health care services;

     (6)  Any home or institution conducted only for those who, pursuant to the teachings, faith, or belief of any group, depend for healing upon prayer or other spiritual means;

     (7)  Dental clinics;

     (8)  Nonpatient areas of care facilities such as parking           garages and administrative offices;

     (9)  Bed changes that involve ten per cent or ten beds of existing licensed bed types, whichever is less, of a facility's total existing licensed beds within a two-year period;

    (10)  Projects that are wholly dedicated to meeting the  State's obligations under court orders, including consent decrees, that have already determined that need for the projects exists;

    (11)  Replacement of existing equipment with its modern-day          equivalent;

    (12)  Primary care clinics under the expenditure thresholds referenced in section 323D-2;

    (13)  Equipment and services related to that equipment, that are primarily invented and used for research purposes as opposed to usual and customary diagnostic and therapeutic care;

    (14)  Capital expenditures that are required:

         (A)  To eliminate or prevent imminent safety hazards as defined by federal, state, or county fire, building, or life safety codes or regulations;

         (B)  To comply with state licensure standards;

         (C)  To comply with accreditation standards, compliance with which is required to receive reimbursements under Title XVIII of the Social Security Act or payments under a state plan for medical assistance approved under Title XIX of such Act;

    (15)  Extended care adult residential care homes and assisted living facilities; or

    (16)  Other facilities or services that the [agency through the statewide council] department chooses to exempt, by rules pursuant to section 323D-62."

     SECTION 50.  Section 323D-61, Hawaii Revised Statutes, is amended to read as follows:

     "§323D-61  Personnel.  The [administrator of the state agency] director of health shall hire necessary personnel under chapter 76 to carry out the purposes of this chapter."

     SECTION 51.  Section 323D-82, Hawaii Revised Statutes, is amended to read as follows:

     "§323D-82  Maintenance of services.  A person who has acquired or is engaged in the acquisition of a hospital shall not substantially reduce or eliminate direct patient care services at the hospital below the levels at which those services were available at the time of the acquisition, without first giving written notice of the planned reduction or elimination to the [agency] department and receiving the [agency's] department's approval, prior to implementing the reduction or elimination of services."

     SECTION 52.  Section 323D-71, Hawaii Revised Statutes, is amended by repealing the definition of "agency".

     [""Agency" means the state health planning and development agency."]

     SECTION 53.  (a)  The following sections of the Hawaii Revised Statutes are amended by substituting the term "department" for "state agency" wherever the latter occurs:  323D-12, 323D-13, 323D-14, 323D-18, 323D-18.5, 323D-18.6, 323D-21, 323D-22, 323D-43, 323D-44, 323D-44.7, 323D-45, 323D-45.1, 323D-45.3, 323D-46, 323D-46.2, 323D-48, 323D-49, and 323D-62.

     (b)  The following sections of the Hawaii Revised Statutes are amended by substituting the term "department" for "agency" wherever the latter occurs:  323D-44, 323D-44.5, 323D-44.7, 323D-52, 323D-72, 323D-73, 323D-74, 323D-75, 323D-77, 323D-78, and 323D-80.

PART XIV.

MEASUREMENT STANDARDS PROGRAM

TRANSFER TO DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS

     SECTION 54.  The purpose of this part is to effectuate the transfer of the measurement standards program, with its statutory authority, from the department of agriculture to the department of commerce and consumer affairs.

     SECTION 55.  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 56.  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 57.  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 58.  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 59.  The following sections of the Hawaii Revised Statutes are amended by substituting the term "department" for "board" wherever the latter 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 60.  (a)  The following section of the Hawaii Revised Statutes is amended by substituting the term "director" for "chairperson" wherever the latter occurs:  486-33.

     (b)  The following sections of the Hawaii Revised Statutes are amended by substituting the term "director" for "administrator" wherever the latter 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 XV.

CONFORMING AMENDMENTS FOR

DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM

     SECTION 61.  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 62.  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 63.  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, at all times, 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 64.  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)  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)  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 XVI.

TRANSITION PROVISIONS

     SECTION 65.  (a)  All rights, powers, functions, and duties of the agencies, divisions, or programs transferred under parts I to XIV 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 66.  All rules, policies, procedures, guidelines, and other material adopted or developed by an agency, division, or program transferred under parts I to XIV shall be transferred to the successor agency and shall remain in full force and effect until amended or repealed by the successor agency.

     SECTION 67.  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 to XIV shall be transferred to the successor agency.

     SECTION 68.  (a)  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 to XIV.  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 VII, VIII, and IX to the ex officio membership of the board of the Hawaii community development authority, Aloha tower development corporation, and high technology development corporation.

     SECTION 69.  The legislative reference bureau shall conduct a review of this Act for the purpose of making recommendations to move chapters affected by this Act to the appropriate titles of the Hawaii Revised Statutes.  The legislative reference bureau shall submit its findings and recommendations, accompanied by proposed legislation, to the legislature by January 1, 2010.

     SECTION 70.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

PART XVII.

RAMSEYER PROVISION AND EFFECTIVE DATE

     SECTION 71.  In codifying the new sections added by section 8 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 72.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 73.  This Act shall take effect on July 1, 2009.

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