Hawaii-2022-HB1123-Introduced

SECTION 1. Section 202, Hawaiian Homes Commission Act, 1920, as amended, is amended to read as follows:

"§202. Department officers, staff, commission, members, compensation. (a) There shall be a department of Hawaiian home lands which shall be headed by an executive board to be known as the Hawaiian homes commission. The members of the commission shall be nominated and appointed in accordance with section 26‑34, Hawaii Revised Statutes. The commission shall be composed of nine members, as follows: three shall be residents of the city and county of Honolulu; two shall be residents of the county of Hawaii one of whom shall be a resident of east Hawaii and the other a resident of west Hawaii; two shall be residents of the county of Maui one of whom shall be a resident from the island of Molokai; one shall be a resident of the county of Kauai; and the ninth member shall be the chairman of the Hawaiian homes commission. All members shall have been residents of the State at least three years prior to their appointment and at least [~~four~~] five of the members shall be [~~descendants of not less than one-fourth part of the blood of the races inhabiting the Hawaiian Islands previous to 1778.~~] beneficiaries of the trust; provided that the beneficiary members shall be on the waitlist for Hawaiian home lands at the time of their appointment. The members of the commission shall serve without pay, but shall receive actual expenses incurred by them in the discharge of their duties as [~~such~~] members. The governor shall appoint the [~~chairman~~] chairperson of the commission from among the commission members [~~thereof~~].

The commission may delegate to the [~~chairman such~~] chairperson duties, powers, and authority or so much thereof, as may be lawful or proper for the performance of the functions vested in the commission. The [~~chairman~~] chairperson of the commission shall serve in a full-time capacity. [He] The chairperson shall, in such capacity, perform [~~such~~] duties, and exercise [~~such~~] powers and authority, or so much thereof, as may be delegated to [~~him~~] the chairperson by the commission as herein provided above.

(b) The provisions of section 76-16, Hawaii Revised Statutes, shall apply to the positions of first deputy and private secretary to the [~~chairman~~] chairperson of the commission. The department may hire temporary staff on a contractual basis not subject to chapters 76 and 78, Hawaii Revised Statutes, when the services to be performed will assist in carrying out the purposes of the Act. These positions may be funded through appropriations for capital improvement program projects and by the administration account, operating fund, or native Hawaiian rehabilitation fund. No contract shall be for a period longer than two years, but individuals hired under contract may be employed for a maximum of six years; provided that the six-year limitation shall not apply if the department, with the approval of the governor, determines that [~~such~~] these contract individuals are needed to provide critical services for the efficient functioning of the department. All other positions in the department shall be subject to chapter 76, Hawaii Revised Statutes.

All vacant and new civil service positions covered by chapter 76, Hawaii Revised Statutes, shall be filled in accordance with section 76-22.5, Hawaii Revised Statutes; provided that the provisions of these sections shall be applicable first to qualified persons of Hawaiian extraction.

(c) The department shall distribute by email or its website a quarterly report to the beneficiaries, registered homestead associations, and the legislature that identifies each land disposition and lease cancellation including the land instrument used, the amount of land, under which section of the Act the disposition or cancellation is authorized, and whether the disposition or cancellation was made on behalf of a beneficiary or non-beneficiary. The quarterly report shall also identify all trust fund receipts and expenditures.

(d) The governor may establish an inter-agency council to address the purposes of this chapter. The inter-agency council, if established, shall meet at least three times per year."

SECTION 2. Section 213.6, Hawaiian Homes Commission Act, 1920, as amended, is amended to read as follows:

"§213.6. Hawaiian home lands trust fund. There is established a trust fund to be known as the Hawaiian home lands trust fund, into which shall be deposited all appropriations by the state legislature specified to be deposited therein. Moneys of the Hawaiian home lands trust fund shall be expended by the department, as provided by law, upon approval by the commission and shall be used for capital improvements and other purposes undertaken in furtherance of the Act. The department shall have a fiduciary responsibility toward the trust fund and shall provide annual reports therefor to the legislature and to the beneficiaries of the trust. The annual reports shall include a full accounting of all Act 14, Special Session Laws of Hawaii 1995, funding receipts and expenditures.

The commission may deposit moneys from the trust fund into depositories other than the state treasury and may manage, invest, and reinvest moneys in the trust fund. The commission may hold, purchase, sell, assign, transfer, or dispose of any securities and investments in which any of the moneys have been invested, as well as the proceeds of the investments. Moneys from the trust fund that are deposited into depositories other than the state treasury shall be exempt from the requirements of chapters 36 and 38. Any interest or other earnings arising out of investments from the trust fund shall be credited to and deposited into the trust fund."

SECTION 3. Section 222, Hawaiian Homes Commission Act, 1920, as amended, is amended by amending subsection (a) to read as follows:

"(a) The department may make [~~such~~] expenditures and shall adopt rules in accordance with chapter 91, Hawaii Revised Statutes, as are necessary for the efficient execution of the functions vested in the department by this Act. All expenditures of the department and all moneys necessary for loans made by the department, in accordance with [~~the provisions of~~] this Act, shall be allowed and paid upon the presentation of itemized vouchers approved by the [~~chairman~~] chairperson of the commission or the [~~chairman's~~] chairperson's designated representative. The department shall make an annual report to the legislature of the State upon the first day of each regular session and [~~such~~] any special reports as the legislature may from time to time require. The [~~chairman~~] chairperson and members of the commission shall give bond as required by law. The sureties upon the bond and the conditions thereof shall be approved annually by the governor."

SECTION 4. Section 28-8.3, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (a) to read:

"(a) No department of the State other than the attorney general may employ or retain any attorney, by contract or otherwise, for the purpose of representing the State or the department in any litigation, rendering legal counsel to the department, or drafting legal documents for the department; provided that the foregoing provision shall not apply to the employment or retention of attorneys:

(1) By the public utilities commission, the labor and industrial relations appeals board, and the Hawaii labor relations board;

(2) By any court or judicial or legislative office of the State; provided that if the attorney general is requested to provide representation to a court or judicial office by the chief justice or the chief justice's designee, or to a legislative office by the speaker of the house of representatives and the president of the senate jointly, and the attorney general declines to provide such representation on the grounds of conflict of interest, the attorney general shall retain an attorney for the court, judicial, or legislative office, subject to approval by the court, judicial, or legislative office;

(3) By the legislative reference bureau;

(4) By any compilation commission that may be constituted from time to time;

(5) By the real estate commission for any action involving the real estate recovery fund;

(6) By the contractors license board for any action involving the contractors recovery fund;

(7) By the office of Hawaiian affairs;

(8) By the department of commerce and consumer affairs for the enforcement of violations of chapters 480 and 485A;

(9) As grand jury counsel;

(10) By the Hawaii health systems corporation, or its regional system boards, or any of their facilities;

(11) By the auditor;

(12) By the office of ombudsman;

(13) By the insurance division;

(14) By the University of Hawaii;

(15) By the Kahoolawe island reserve commission;

(16) By the division of consumer advocacy;

(17) By the office of elections;

(18) By the campaign spending commission;

(19) By the Hawaii tourism authority, as provided in section 201B-2.5;

(20) By the division of financial institutions;

(21) By the office of information practices; [or]

(22) By the Hawaiian homes commission or the department of Hawaiian home lands; provided that:

(A) The Hawaiian homes commission and the department of Hawaiian home lands may use the services of the attorney general as needed and when the interests of the State, the Hawaiian homes commission, and the department of Hawaiian home lands are aligned; and

(B) Legal fees owed to independent counsel shall be paid by the State; or

[~~(22)~~] (23) By a department, if the attorney general, for reasons deemed by the attorney general to be good and sufficient, declines to employ or retain an attorney for a department; provided that the governor waives the provision of this section."

2. By amending subsection (c) to read:

"(c) Every attorney employed by any department on a full-time basis, except an attorney employed by the public utilities commission, the labor and industrial relations appeals board, the Hawaii labor relations board, the office of Hawaiian affairs, the Hawaii health systems corporation or its regional system boards, the department of commerce and consumer affairs in prosecution of consumer complaints, insurance division, the division of consumer advocacy, the University of Hawaii, the Hawaii tourism authority as provided in section 201B-2.5, the office of information practices, the Hawaiian homes commission or the department of Hawaiian home lands, or as grand jury counsel, shall be a deputy attorney general."

SECTION 5. (a) The legislative reference bureau shall conduct a study on the implications of creating a position for the director of the department of Hawaiian home lands that is separate from the chairperson of the Hawaiian homes commission.

(b) The legislative reference bureau shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2022.

SECTION 6. Any sitting Hawaiian homes commission member whose term of office has not expired on the effective date of this Act and who does not qualify to be a member of the Hawaiian homes commission under the amendments made by this Act may continue to serve on the commission until that member's term expires.

SECTION 7. The provisions of the amendments made by this Act to the Hawaiian Homes Commission Act, 1920, as amended, are declared to be severable, and if any section, sentence, clause, or phrase, or the application thereof to any person or circumstances is held ineffective because there is a requirement of having the consent of the United States to take effect, then that portion only shall take effect upon the granting of consent by the United States and effectiveness of the remainder of these amendments or the application thereof shall not be affected.

SECTION 8. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 9. This Act shall take effect upon its approval.

HOUSE OF REPRESENTATIVES	H.B. NO.	1123
THIRTY-FIRST LEGISLATURE, 2021
STATE OF HAWAII