Bill Text: HI SB3100 | 2018 | Regular Session | Amended
Bill Title: Relating To The Structure Of Government.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Engrossed - Dead) 2018-04-25 - Conference committee meeting to reconvene on 04-27-18 2:30PM in conference room 429. [SB3100 Detail]
Download: Hawaii-2018-SB3100-Amended.html
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THE SENATE |
S.B. NO. |
3100 |
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TWENTY-NINTH LEGISLATURE, 2018 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO THE STRUCTURE OF GOVERNMENT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
PART I
SECTION 1.
The purpose of this Act is to consolidate the department of human
resources development and the department of budget and finance into a single
department. The legislature finds that
this consolidation will promote the efficiency and effectiveness of state
government by improving the coordination between the budgeting of state
resources and the hiring of employees for state positions.
PART II
SECTION 2. Section 26-4, Hawaii Revised Statutes, is amended to read as follows:
"§26-4 Structure of government. Under the supervision of the governor, all executive and administrative offices, departments, and instrumentalities of the state government and their respective functions, powers, and duties shall be allocated among and within the following principal departments that are hereby established:
[(1) Department of
human resources development (Section 26-5)
(2)] (1) Department of accounting and general services
([Section] section 26-6);
[(3)] (2) Department of the attorney general ([Section]
section 26-7);
[(4)] (3) Department of budget [and],
finance, and human resources ([Section] section 26-8);
[(5)] (4) Department of commerce and consumer affairs
([Section] section 26-9);
[(6)] (5) Department of taxation ([Section] section
26-10);
[(7)] (6) University of Hawaii ([Section] section
26-11);
[(8)] (7) Department of education ([Section] section
26‑12);
[(9)] (8) Department of health ([Section] section
26-13);
[(10)] (9) Department of human services ([Section]
section 26-14);
[(11)] (10) Department of land and natural resources ([Section]
section 26-15);
[(12)] (11) Department of agriculture ([Section] section
26‑16);
[(13)] (12) Department of Hawaiian home lands ([Section]
section 26-17);
[(14)] (13) Department of business, economic development,
and tourism ([Section] section 26-18);
[(15)] (14) Department of transportation ([Section]
section 26-19);
[(16)] (15) Department of labor and industrial relations
([Section] section 26-20);
[(17)] (16) Department of defense ([Section] section
26-21); and
[(18)] (17) Department of public safety ([Section]
section 26-14.6)."
SECTION 3. Section 26-8, Hawaii Revised Statutes, is amended to read as follows:
"§26-8 Department of budget [and],
finance[.], and human resources. (a)
The department of budget [and], finance, and human
resources shall be headed by a single executive to be known as the director
of finance[.] and human resources.
(b) The department shall:
(1) Undertake the preparation and execution of the executive budget of the state government;
(2) Conduct a
systematic and continuous review of the finances, organization, and methods of
each department of the State to assist each department in achieving the most
effective expenditure of all public funds and to determine that [such] those
expenditures are in accordance with the budget laws and controls in force;
(3) Have custody of
state funds and be responsible for the safekeeping, management, investment, and
disbursement thereof; [and]
(4) Administer state
debts[.]; and
(5) Administer the
state human resources program, including human resources development and
training, and central human resources services such as recruitment,
examination, classification, pay administration, and payment of any claims as
required under chapter 386.
(c)
The functions and authority heretofore exercised by the department of
human resources development and the bureau of the budget (except for
insurance management, surplus property management, and central purchasing
transferred to the department of accounting and general services) and the funds
custody, cash management, debt management, and administering of veterans loan
functions of the treasurer as heretofore constituted are transferred to the
department of budget [and], finance, and human resources
established by this chapter.
(d)
The employees' retirement system as constituted by chapter 88 is placed
within the department of budget [and], finance, and human
resources for administrative purposes.
The functions, duties, and powers, subject to the administrative control
of the director of finance[,] and human resources, and the
composition of the board of trustees of the employees' retirement system shall
be as heretofore provided by law.
(e)
There shall be within the department of budget, finance, and human
resources a board to be known as the merit appeals board, which shall sit as an
appellate body on matters set forth in section 76-14. The merit appeals board shall consist of
three members. All members shall have
knowledge of public employment laws and prior experience with public
employment; provided that at least one member's experience was with an employee
organization as a member or an employee of that organization and at least one
member's experience was with management.
The governor shall consider the names of qualified individuals submitted
by employee organizations or management before appointing the members of the
board. The chairperson of the board
shall be designated as specified in the rules of the board.
(f)
Section 26-34 shall not apply to the merit appeals board members. The merit appeals board members shall be
appointed by the governor for four-year terms and may be reappointed without
limitation; provided that the initial appointments shall be for staggered
terms, as determined by the governor.
The governor shall fill any vacancy by appointing a new member for a
four-year term. The governor may remove
for cause any member after due notice and public hearing.
(g)
Nothing in subsections (e) and (f) shall be construed as in any manner
affecting the civil service laws applicable to the several counties, the
judiciary, or the Hawaii health systems corporation or its regional system
boards.
(h)
There is established in the state treasury the human resources
development special fund, to be administered by the department of budget,
finance, and human resources, which shall consist of: all revenues received by
the department as a result of entrepreneurial efforts in securing new sources
of funds not provided for in the department's budget for services rendered by
the department, all revenues received by the department from the charging of
participant fees for in-service training that are in addition to general fund
appropriations in the department's budget for developing and operating
in-service training programs, appropriations made by the legislature to the
fund, and moneys directed to the department from any other source, including
gifts, grants, and awards.
Moneys in the human resources
development special fund shall be used for the following purposes:
(1) Supporting the
department's entrepreneurial initiatives, training activities, and programs;
(2) Administrative
costs of the department's entrepreneurial initiatives, training activities, and
programs; and
(3) Any other
purpose deemed necessary by the director for the purpose of facilitating the
department's entrepreneurial initiatives, training activities, and programs.
(i)
The department of budget, finance, and human resources shall submit, no
later than twenty days prior to the convening of each regular session, a report
of the number of exempt positions that were converted to civil service
positions during the previous twelve months.
The report shall include but not be limited to:
(1) The date that
each exempt position was established;
(2) The purpose of
the exempt position;
(3) Rationale for
the conversion; and
(4) The number of exempt positions remaining in each state department after the conversions."
SECTION 4. Section 76-47, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) Members of the merit appeals board shall be
persons that can objectively apply the merit principle to public
employment. Other qualifications of
board members and other matters pertaining to the establishment of the merit
appeals board, whether composition of the board, manner of appointment, term of
office, limitation on terms, chairperson, removal of members, and name for its
merit appeals board, shall be left to the determination of each jurisdiction
based on its own preferences and needs.
A jurisdiction may continue to use its civil service commission or
appeals board, with or without modification, as its merit appeals board to
assume all of the functions and responsibilities under section 76-14; provided
that the merit appeals board for the State shall be as provided in section [26-5.]
26-8."
SECTION 5. Section 26-5, Hawaii Revised Statutes, is repealed.
["§26-5 Department of human
resources development.
(a) The department of human
resources development shall be headed by a single executive to be known as the
director of human resources development.
(b) The department shall administer the state
human resources program, including human resources development and training,
and central human resources services such as recruitment, examination,
classification, pay administration, and payment of any claims as required under
chapter 386.
(c) There shall be within the department of human
resources development a board to be known as the merit appeals board which shall
sit as an appellate body on matters set forth in section 76-14. The board shall consist of three
members. All members shall have
knowledge of public employment laws and prior experience with public
employment; provided that at least one member's experience was with an employee
organization as a member or an employee of that organization and at least one
member's experience was with management.
The governor shall consider the names of qualified individuals submitted
by employee organizations or management before appointing the members of the
board. The chairperson of the board
shall be designated as specified in the rules of the board.
(d) The provisions of section 26-34 shall not
apply and the board members shall be appointed by the governor for four-year
terms and may be re-appointed without limitation; provided that the initial
appointments shall be for staggered terms, as determined by the governor. The governor shall fill any vacancy by
appointing a new member for a four-year term.
The governor may remove for cause any member after due notice and public
hearing.
(e) Nothing in this section shall be construed as
in any manner affecting the civil service laws applicable to the several
counties, the judiciary, or the
(f) There is established in the state treasury
the human resources development special fund, to be administered by the
department of human resources development, which shall consist of: all revenues
received by the department as a result of entrepreneurial efforts in securing
new sources of funds not provided for in the department's budget for services
rendered by the department, all revenues received by the department from the
charging of participant fees for in-service training that are in addition to
general fund appropriations in the department's budget for developing and
operating in-service training programs, appropriations made by the legislature to
the fund, and moneys directed to the department from any other source,
including gifts, grants, and awards.
Moneys in the human resources
development special fund shall be used for the following purposes:
(1) Supporting the
department's entrepreneurial initiatives, training activities, and programs;
(2) Administrative
costs of the department's entrepreneurial initiatives, training activities, and
programs; and
(3) Any other
purpose deemed necessary by the director for the purpose of facilitating the department's
entrepreneurial initiatives, training activities, and programs.
(g) The department of human resources development
shall submit, no later than twenty days prior to the convening of each regular
session [of the legislature] beginning with the regular session of 2007, a
report of the number of exempt positions that were converted to civil service
positions during the previous twelve months.
The report shall include but not be limited to:
(1) When the
position was established;
(2) The purpose of
the position;
(3) Rationale for
the conversion; and
(4) How many exempt
positions remain in each state department after the conversions."]
PART III
SECTION 6. On July 1, 2020, all rights, powers, functions, and duties of the department of budget and finance and the department of human resources development under chapter 26, Hawaii Revised Statutes, are transferred to the department of budget, finance, and human resources.
SECTION 7. Transfer of officers and employees. 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.
No officer or employee of the State having 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, and an officer or employee may be transferred or appointed to a civil service position without the necessity of examination; provided that the officer or employee possesses the minimum qualifications for the position to which transferred or appointed; and provided further that subsequent changes in status may be made pursuant to applicable civil service and compensation laws.
An officer or employee of the State who does not have tenure and who may be transferred or appointed to a civil service position as a consequence of this Act shall become a civil service employee without the loss of salary, seniority, prior service credit, vacation, sick leave, or other employee benefits or privileges and without the necessity of examination; provided that the officer or employee possesses the minimum qualifications for the position to which transferred or appointed.
If an office or position held by an officer or employee having tenure is abolished, the officer or employee shall not thereby be separated from public employment, but shall remain in the employment of the State with the same pay and classification and shall be transferred to some other office or position for which the officer or employee is eligible under the personnel laws of the State as determined by the head of the department or the governor.
SECTION 8. Transfer of records, equipment, and other personal property. All appropriations, records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by the department of budget and finance and the department of human resources development relating to the functions transferred to the department of budget, finance, and human resources shall be transferred with the functions to which they relate.
SECTION 9. Transfer of functions; continuity of rules, policies, and other material. All rules, policies, procedures, guidelines, and other material adopted or developed by the department of budget and finance and the department of human resources development to implement provisions of the Hawaii Revised Statutes that are made applicable to the department of budget, finance, and human resources by this Act, shall remain in full force and effect until amended or repealed by the department of budget, finance, and human resources, pursuant to chapter 91, Hawaii Revised Statutes.
In the interim, every reference to the department of budget and finance or department of human resources development, or the director of finance or director of human resources development in those rules, policies, procedures, guidelines, and other material is amended to refer to the department of budget, finance, and human resources or the director of finance and human resources, as appropriate.
SECTION 10. Transfer of functions; effect on agreements, contracts, deeds, leases, permits, and other documents. All agreements, contracts, deeds, leases, permits, or other documents executed or entered into by or on behalf of the department of budget and finance or the department of human resources development pursuant to the Hawaii Revised Statutes, which are made applicable to the department of budget, finance, and human resources by this Act, shall remain in full force and effect.
Effective on the same day that legislation transferring the functions of the department of budget and finance and the department of human resources development to the department of budget, finance, and human resources is approved, every reference to the department of budget and finance or department of human resources development, or the director of finance or director of human resources development therein, shall be construed as a reference to the department of budget, finance, and human resources or the director of finance and human resources, as appropriate.
PART IV
SECTION 11. There is appropriated out of the general revenues of the State of Hawaii the sum of $100,000 or so much thereof as may be necessary for fiscal year 2018-2019 for the purposes described in this Act.
The sum appropriated shall be expended by the department of budget and finance for the purposes of part III of this Act.
SECTION
12. The department of budget and
finance, in collaboration with the department of human resources development,
shall submit joint status reports on the consolidation to the legislature no
later than twenty days prior to the convening of the regular session of 2019, by no later than June 30,
2019, and no later than twenty days prior to the convening of the regular
session of 2020.
PART V
SECTION 13. If any part of this Act is found to be in conflict with federal requirements that are a prescribed condition for the allocation of federal funds to the State, the conflicting part of this Act is inoperative solely to the extent of the conflict and with respect to the agencies directly affected, and this finding does not affect the operation of the remainder of this Act in its application to the agencies concerned. The rules under this Act shall meet federal requirements that are a necessary condition to the receipt of federal funds by the State.
SECTION 14. The revisor of statutes shall replace the terms:
(1) "Department of budget and finance" or "department of human resources development" or like terms, with "department of budget, finance, and human resources"; and
(2) "Director of finance" or "director of human resources development" or like terms, with "director of finance and human resources",
as those terms appear in the Hawaii Revised Statutes.
SECTION 15. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 16. This Act shall take effect on January 1, 2050.
Report Title:
Government Structure; B&F; DHRD; Consolidation
Description:
Consolidates the Department of Budget and Finance and the Department of Human Resources Development into the Department of Budget, Finance, and Human Resources. Transfers functions and duties accordingly. Effective 1/1/2050. (SD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
