HI
Hawaii Senate Bill SB2765

Hawaii 2024 Regular Session

Hawaii Senate Bill SB2765 Compare Versions

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11 THE SENATE S.B. NO. 2765 THIRTY-SECOND LEGISLATURE, 2024 STATE OF HAWAII A BILL FOR AN ACT Relating to THE STATE CONVENTION CENTER. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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4747 SECTION 1. Section 23-76, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows: "(c) This section shall apply to the following: (1) Section 237-24.3(4)--Amounts received by employment benefit plans and amounts received by nonprofit organizations or offices for the administration of employee benefit plans; (2) Section 237-24.3(5)--Amounts received from food coupons under the federal food stamp program or vouchers under the Special Supplemental Foods Program for Women, Infants and Children; (3) Section 237-24.3(6)--Amounts received from the sale of prescription drugs or prosthetic devices; (4) Section 237-24.3(8)--Amounts received as dues by unincorporated merchants associations for advertising or promotion; (5) Section 237-24.3(9)--Amounts received by labor organizations from real property leases; (6) Section 237-24.75(2)--Reimbursements to the Hawaii convention center operator from the [Hawaii tourism authority;] department of accounting and general services; (7) Section 237-24.75(3)--Reimbursements to professional employer organizations from client companies for employee wages and fringe benefits; and (8) Section 209E-11--Amounts received by qualified businesses in enterprise zones." SECTION 2. Section 26-6, Hawaii Revised Statutes, is amended to read as follows: "§26-6 Department of accounting and general services. (a) The department of accounting and general services shall be headed by a single executive to be known as the comptroller. (b) The department shall: (1) Preaudit and conduct after-the-fact audits of the financial accounts of all state departments to determine the legality of expenditures and the accuracy of accounts; (2) Report to the governor and to each regular session of the legislature as to the finances of each department of the State; (3) Administer the state risk management program; (4) Establish and manage motor pools; (5) Manage the preservation and disposal of all records of the State; (6) Undertake the program of centralized engineering and office leasing services, including operation and maintenance and lease buyback processing pursuant to subsection (d) of public buildings, for departments of the State; (7) Undertake the functions of the state surveyor; (8) Establish accounting and internal control systems; (9) Under the direction of the chief information officer, provide centralized computer information management and processing services; (10) Establish a program to provide a means for public access to public information and develop an information network for state government; (11) Assume administrative responsibility for the office of information practices; [and] (12) Enter into agreements for the use of the convention center facility for a period of up to ten years; (13) Set and collect rents, fees, charges, or other payments for the lease, use, occupancy, or disposition of the convention center facility without regard to chapter 91; (14) Marketing, management, use, operation, or maintenance of the convention center facility, including the purchase or sale of goods or services, logo items, concessions, sponsorships, and license agreements, or any use of the convention center facility as a commercial enterprise; provided that contracts issued pursuant to this paragraph for the marketing of all uses of the convention center facility may be issued separately from the management, use, operation, or maintenance of the facility; (15) Notwithstanding chapter 171, acquire, lease as lessee or lessor, own, rent, hold, and dispose of the convention center facility in the exercise of its powers and the performance of its duties under this chapter; and [(12)] (16) Approve state fleet acquisitions; provided that: (A) Beginning January 1, 2022, all new light-duty motor vehicles that are passenger cars purchased for the State's fleet shall be zero-emission vehicles; (B) Beginning as soon as practicable but no later than January 1, 2030, all new light-duty motor vehicles that are multipurpose passenger vehicles and trucks for the State's fleet shall be zero-emission vehicles; and (C) The comptroller may authorize an exemption for new fleet vehicle purchases if zero-emission vehicles are demonstrated to be cost-prohibitive on a lifecycle basis or unsuitable for the vehicles' planned purpose, or if funds are unavailable. For the purposes of this subsection: "Light-duty motor vehicle" shall have the same meaning as contained in title 10 Code [[]of[]] Federal Regulations part 490. "Multipurpose passenger vehicle" shall have the same meaning as contained in title 49 Code of Federal Regulations section 571.3. "Passenger car" shall have the same meaning as contained in title 49 Code of Federal Regulations section 571.3. "Truck" shall have the same meaning as contained in title 49 Code of Federal Regulations section 571.3. "Zero-emission vehicle" shall have the same meaning as contained in title 40 Code of Federal Regulations section 88.102-94. (c) The state communication system shall be established to: (1) Facilitate implementation of the State's distributed information processing and information resource management plans; (2) Improve data, voice, and video communications in state government; (3) Provide a means for connectivity among the state, university, and county computer systems; and (4) Provide a long-term means for public access to public information. (d) The department shall establish, coordinate, and manage a program to facilitate facility agreements between the State and private investors for the sale of facilities, excluding facilities managed or controlled by the department of transportation, to private investors; provided that each facility agreement contains the following requirements: (1) The State shall sell the facility to the private investor, who shall: (A) Renovate, improve, or construct a facility for the State and may maintain the facility; and (B) Lease the facility to the State, pursuant to a building lease; (2) The land upon which the facility rests shall not be sold to the private investor; provided that the land may be leased at a nominal rate to the private investor for a term that would, at a minimum, allow the private investor to recover the capital investment that has been made to the facility, including depreciation; and (3) The State shall have the option of purchasing the facility from the private investor for the remaining balance of the debt service costs incurred by the private investor at any time. For purposes of this subsection: "Building lease" means a contract between the department of accounting and general services and a private investor in which the private investor leases an improved facility to the department for a specified period of time. "Facility" means a building under the management and control of any state department. "Facility agreement" means an agreement between the State and a private investor that, at a minimum, includes a description of the work to be done, the sale price for the facility, the duration of the agreement, the roles and responsibilities of the State and the private investor, and the terms and conditions for the lease. "Private investor" means a nongovernmental entity. (e) The department may adopt rules as may be necessary or desirable for the operation and maintenance of public buildings; for the operation and implementation of a program to provide a means for public access to the State's information network system and public information; and for the implementation of facility agreements pursuant to subsection (d). The rules shall be adopted pursuant to chapter 91. (f) The King Kamehameha celebration commission shall be placed within the department of accounting and general services for administrative purposes. The functions, duties, and powers, subject to the administrative control of the comptroller, and the composition of the commission shall be as heretofore provided by law. (g) The functions and authority heretofore exercised by the comptroller, board of commissioners of public archives, the archivist, the disposal committee, and the insurance management, surplus property management, and central purchasing functions of the bureau of the budget and the nonhighway functions of the department of public works as heretofore constituted are transferred to the department of accounting and general services established by this chapter. (h) The department of accounting and general services shall preserve and protect Washington Place, including the grounds and the historic residence situated on its premises at Miller and Beretania Streets in Honolulu. The department shall administer, manage, operate, and maintain Washington Place and the trust fund created under subsection (i). (i) There is established a trust fund in the state treasury to be known as the Washington Place trust fund, into which shall be deposited: (1) All rents and fees collected for the use of Washington Place and from activities conducted on the premises; (2) All other money received for the fund from any other source; and (3) All income and interest earned or accrued on moneys deposited into the trust fund. All moneys deposited into the trust fund shall be expended by the department of accounting and general services and used exclusively to implement the provisions of subsection (h), including for staff salaries and fringe benefits, and shall not be transferred, nor subject to transfer, to the general fund or any other fund in the state treasury. (j) There is established the convention center enterprise special fund, into which shall be deposited: (1) A portion of the revenues from the transient accommodations tax, as provided by section 237D-6.5; (2) All revenues or moneys derived from the operations of the convention center to include all revenues from the food and beverage service, all revenues from the parking facilities or from any concession, and all revenues from the sale of souvenirs, logo items, or any other items offered for purchase at the convention center; (3) Private contributions, interest, compensation, gross or net revenues, proceeds, or other moneys derived from any source or for any purpose arising from the use of the convention center facility; and (4) Appropriations by the legislature for marketing the facility pursuant to subsection (b)(14). Moneys in the convention center enterprise special fund shall be used by the department for the payment of expenses arising from any and all use, operation, maintenance, alteration, improvement, or any unforeseen or unplanned repairs of the convention center, including without limitation the food and beverage service and parking service provided at the convention center facility, the sale of souvenirs, logo items, or other items, for any future major repair, maintenance, and improvement of the convention center facility as a commercial enterprise or as a world class facility for conventions, entertainment, or public events, and for marketing the facility pursuant to subsection (b)(14). Moneys in the convention center enterprise special fund may be placed in interest-bearing accounts; provided that the depository in which the money is deposited furnishes security as provided in section 38-3 or otherwise invested by the department until such time as the moneys may be needed; provided that the department shall limit its investments to those listed in section 36-21. All interest accruing from investment of the moneys shall be credited to the convention center enterprise special fund." SECTION 3. Section 36-27, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows: "(a) Except as provided in this section, and notwithstanding any other law to the contrary, from time to time, the director of finance, for the purpose of defraying the prorated estimate of central service expenses of government in relation to all special funds, except the: (1) Special out-of-school time instructional program fund under section 302A-1310; (2) School cafeteria special funds of the department of education; (3) Special funds of the University of Hawaii; (4) Convention center enterprise special fund under section [201B-8;] 26-6(j); (5) Special funds established by section 206E-6; (6) Aloha Tower fund created by section 206J-17; (7) Funds of the employees' retirement system created by section 88-109; (8) Hawaii hurricane relief fund established under chapter 431P; (9) Hawaii health systems corporation special funds and the subaccounts of its regional system boards; (10) Universal service fund established under section 269-42; (11) Emergency and budget reserve fund under section 328L-3; (12) Public schools special fees and charges fund under section 302A-1130; (13) Sport fish special fund under section 187A-9.5; (14) Neurotrauma special fund under section 321H-4; (15) Glass advance disposal fee established by section 342G-82; (16) Center for nursing special fund under section 304A-2163; (17) Passenger facility charge special fund established by section 261-5.5; (18) Solicitation of funds for charitable purposes special fund established by section 467B-15; (19) Land conservation fund established by section 173A-5; (20) Court interpreting services revolving fund under section 607-1.5; (21) Trauma system special fund under section 321-22.5; (22) Hawaii cancer research special fund; (23) Community health centers special fund; (24) Emergency medical services special fund; (25) Rental motor vehicle customer facility charge special fund established under section 261-5.6; (26) Shared services technology special fund under section 27-43; (27) Automated victim information and notification system special fund established under section 353-136; (28) Deposit beverage container deposit special fund under section 342G-104; (29) Hospital sustainability program special fund under section 346G-4; (30) Nursing facility sustainability program special fund under section 346F-4; (31) Hawaii 3R's school improvement fund under section 302A-1502.4; (32) After-school plus program revolving fund under section 302A-1149.5; (33) Civil monetary penalty special fund under section 321-30.2; and [[](34)[]]Stadium development special fund under section 109-3.5, shall deduct five per cent of all receipts of all other special funds, which deduction shall be transferred to the general fund of the State and become general realizations of the State. All officers of the State and other persons having power to allocate or disburse any special funds shall cooperate with the director in effecting these transfers. To determine the proper revenue base upon which the central service assessment is to be calculated, the director shall adopt rules pursuant to chapter 91 for the purpose of suspending or limiting the application of the central service assessment of any fund. No later than twenty days prior to the convening of each regular session of the legislature, the director shall report all central service assessments made during the preceding fiscal year." SECTION 4. Section 36-30, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows: "(a) Each special fund, except the: (1) Special out-of-school time instructional program fund under section 302A-1310; (2) School cafeteria special funds of the department of education; (3) Special funds of the University of Hawaii; (4) Special funds established by section 206E-6; (5) Aloha Tower fund created by section 206J-17; (6) Funds of the employees' retirement system created by section 88-109; (7) Hawaii hurricane relief fund established under chapter 431P; (8) Convention center enterprise special fund established under section [201B-8;] 26-6(j); (9) Hawaii health systems corporation special funds and the subaccounts of its regional system boards; (10) Universal service fund established under section 269-42; (11) Emergency and budget reserve fund under section 328L-3; (12) Public schools special fees and charges fund under section 302A-1130; (13) Sport fish special fund under section 187A-9.5; (14) Neurotrauma special fund under section 321H-4; (15) Center for nursing special fund under section 304A-2163; (16) Passenger facility charge special fund established by section 261-5.5; (17) Court interpreting services revolving fund under section 607-1.5; (18) Trauma system special fund under section 321-22.5; (19) Hawaii cancer research special fund; (20) Community health centers special fund; (21) Emergency medical services special fund; (22) Rental motor vehicle customer facility charge special fund established under section 261-5.6; (23) Shared services technology special fund under section 27-43; (24) Nursing facility sustainability program special fund established pursuant to section 346F-4; (25) Automated victim information and notification system special fund established under section 353-136; (26) Hospital sustainability program special fund under section 346G-4; (27) Civil monetary penalty special fund under section 321-30.2; and [[](28)[]]Stadium development special fund under section 109-3.5, shall be responsible for its pro rata share of the administrative expenses incurred by the department responsible for the operations supported by the special fund concerned." SECTION 5. Section 46-11, Hawaii Revised Statutes, is amended to read as follows: "§46-11 Federal flood insurance. The [Hawaii tourism authority] department of accounting and general services in regard to the convention center district and the mayor or executive officer and the council of the various counties, in regard to the respective counties, may participate and apply on behalf of their respective district and counties for flood insurance coverage pursuant to any applicable provisions of Public Law 1016, Eighty-fourth Congress, Second Session, (70 Stat. 1078). The [Hawaii tourism authority,] department of accounting and general services, in regard to the convention center district, and the mayor or executive officer and the council of the various counties, in regard to the respective counties, shall be vested with the functions, powers, and duties which are necessary to enable their respective district and counties to qualify, participate, and apply for the flood insurance coverage." SECTION 6. Section 201B-1, Hawaii Revised Statutes, is amended by deleting the definition of "convention center facility". ["Convention center facility" or "convention center" means any combination of land, buildings, and improvements thereon, acquired or developed by the State, and includes exhibition halls, meeting rooms, a plenary session hall, and support space that reflect a Hawaiian sense of place; any other structure or facility required or useful for the operation of a convention center, including commercial, office, community service, parking, garage, and other supporting service structures; and, all necessary, useful, and related equipment, furnishings, and appurtenances.] SECTION 7. Section 201B-3, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows: "(a) Except as otherwise limited by this chapter, the authority may: (1) Sue and be sued; (2) Have a seal and alter the same at its pleasure; (3) Through its president and chief executive officer, make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this chapter; provided that the authority may enter into contracts and agreements for a period of up to five years, subject to the availability of funds; [and provided further that the authority may enter into agreements for the use of the convention center facility for a period of up to ten years;] (4) Make and alter bylaws for its organization and internal management; (5) Unless otherwise provided in this chapter, adopt rules in accordance with chapter 91 with respect to its projects, operations, properties, and facilities; (6) Through its president and chief executive officer, represent the authority in communications with the governor and the legislature; (7) Through its president and chief executive officer, provide for the appointment of officers, agents, a sports coordinator, and employees, subject to the approval of the board, prescribing their duties and qualifications, and fixing their salaries, without regard to chapters 76 and 78, if funds have been appropriated by the legislature and allotted as provided by law; (8) Through its president and chief executive officer, purchase supplies, equipment, or furniture; (9) Through its president and chief executive officer, allocate the space or spaces that are to be occupied by the authority and appropriate staff; (10) Through its president and chief executive officer, engage the services of qualified persons to implement the State's tourism marketing plan or portions thereof as determined by the authority; (11) Through its president and chief executive officer, engage the services of consultants on a contractual basis for rendering professional and technical assistance and advice; (12) Procure insurance against any loss in connection with its property and other assets and operations in amounts and from insurers as it deems desirable; (13) Contract for or accept revenues, compensation, proceeds, and gifts or grants in any form from any public agency or any other source; (14) Develop, coordinate, and implement state policies and directions for tourism and related activities taking into account the economic, social, and physical impacts of tourism on the State, Hawaii's natural environment, and areas frequented by visitors; (15) Have a permanent, strong focus on Hawaii brand management; (16) Coordinate all agencies and advise the private sector in the development of tourism-related activities and resources; (17) Work to eliminate or reduce barriers to travel to provide a positive and competitive business environment, including coordinating with the department of transportation on issues affecting airlines and air route development; (18) Market and promote sports-related activities and events; (19) Coordinate the development of new products with the counties and other persons in the public sector and private sector, including the development of sports, culture, health and wellness, education, technology, agriculture, and nature tourism; (20) Establish a public information and educational program to inform the public of tourism and tourism-related problems; (21) Encourage the development of tourism educational, training, and career counseling programs; (22) Establish a program to monitor, investigate, and respond to complaints about problems resulting directly or indirectly from the tourism industry and taking appropriate action as necessary; and (23) Develop and implement emergency measures to respond to any adverse effects on the tourism industry, pursuant to section 201B-9[;]. [(24) Set and collect rents, fees, charges, or other payments for the lease, use, occupancy, or disposition of the convention center facility without regard to chapter 91; (25) Notwithstanding chapter 171, acquire, lease as lessee or lessor, own, rent, hold, and dispose of the convention center facility in the exercise of its powers and the performance of its duties under this chapter; and (26) Acquire by purchase, lease, or otherwise, and develop, construct, operate, own, manage, repair, reconstruct, enlarge, or otherwise effectuate, either directly or through developers, a convention center facility.]" SECTION 8. Section 201B-7, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows: "(a) The authority may enter into contracts and agreements that include the following: (1) Tourism promotion, marketing, and development; (2) Market development-related research; (3) Product development and diversification issues focused on visitors; (4) Promotion, development, and coordination of sports-related activities and events; (5) Promotion of Hawaii, through a coordinated statewide effort, as a place to do business, including high technology business, and as a business destination; (6) Reduction of barriers to travel; [(7) Marketing, management, use, operation, or maintenance of the convention center facility, including the purchase or sale of goods or services, logo items, concessions, sponsorships, and license agreements, or any use of the convention center facility as a commercial enterprise; provided that effective January 1, 2020, and thereafter, contracts issued pursuant to this paragraph for the marketing of all uses of the convention center facility may be issued separately from the management, use, operation, or maintenance of the facility; (8)] (7) Tourism research and statistics to: (A) Measure and analyze tourism trends; (B) Provide information and research to assist in the development and implementation of state tourism policy; and (C) Provide tourism information on: (i) Visitor arrivals, visitor characteristics, and expenditures; (ii) The number of transient accommodation units available, occupancy rates, and room rates; (iii) Airline-related data including seat capacity and number of flights; (iv) The economic, social, and physical impacts of tourism on the State; and (v) The effects of the marketing programs of the authority on the measures of effectiveness developed pursuant to section 201B-6(b); and [(9)] (8) Any and all other activities necessary to carry out the intent of this chapter; provided that the authority shall periodically submit a report of the contracts and agreements entered into by the authority to the governor, the speaker of the house of representatives, and the president of the senate." SECTION 9. Section 201B-7.5, Hawaii Revised Statutes, is amended to read as follows: "[[]§201B-7.5[]] Applicability of Hawaii public procurement code; convention center contractor; construction contracts. The construction contracts for the maintenance of the convention center facility by the private contractor that operates the convention center, by its direct or indirect receipt of, and its expenditure of, public funds from the department of [business, economic development, and tourism or the authority, or both,] accounting and general services shall be subject to part III of chapter 103D." SECTION 10. Section 237-24.75, Hawaii Revised Statutes, is amended to read as follows: "§237-24.75 Additional exemptions. In addition to the amounts exempt under section 237-24, this chapter shall not apply to: (1) Amounts received as a beverage container deposit collected under chapter 342G, part VIII; (2) Amounts received by the operator of the Hawaii convention center for reimbursement of costs or advances made pursuant to a contract with the [Hawaii tourism authority] department of accounting and general services under section [201B‑7;] 26-6; and (3) Amounts received by a professional employer organization that is registered with the department of labor and industrial relations pursuant to chapter 373L, from a client company equal to amounts that are disbursed by the professional employer organization for employee wages, salaries, payroll taxes, insurance premiums, and benefits, including retirement, vacation, sick leave, health benefits, and similar employment benefits with respect to covered employees at a client company; provided that this exemption shall not apply to amounts received by a professional employer organization after: (A) Notification from the department of labor and industrial relations that the professional employer organization has not fulfilled or maintained the registration requirements under this chapter; or (B) A determination by the department that the professional employer organization has failed to pay any tax withholding for covered employees or any federal or state taxes for which the professional employer organization is responsible. As used in this paragraph, "professional employer organization", "client company", and "covered employee" shall have the meanings provided in section 373L-1." SECTION 11. Section 237D-6.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows: "(b) Except for the revenues collected pursuant to section 237D-2(e), revenues collected under this chapter shall be distributed in the following priority, with the excess revenues to be deposited into the general fund: (1) $1,500,000 shall be allocated to the Turtle Bay conservation easement special fund beginning July 1, 2015, for the reimbursement to the state general fund of debt service on reimbursable general obligation bonds, including ongoing expenses related to the issuance of the bonds, the proceeds of which were used to acquire the conservation easement and other real property interests in Turtle Bay, Oahu, for the protection, preservation, and enhancement of natural resources important to the State, until the bonds are fully amortized; (2) $11,000,000 shall be allocated to the convention center enterprise special fund established under section [201B-8;] 26-6(j); (3) An allocation shall be deposited into the tourism emergency special fund, established in section 201B-10, in a manner sufficient to maintain a fund balance of $5,000,000 in the tourism emergency special fund; and (4) $3,000,000 shall be allocated to the special land and development fund established under section 171-19; provided that the allocation shall be expended in accordance with the Hawaii tourism authority strategic plan for: (A) The protection, preservation, maintenance, and enhancement of natural resources, including beaches, important to the visitor industry; (B) Planning, construction, and repair of facilities; and (C) Operation and maintenance costs of public lands, including beaches, connected with enhancing the visitor experience. All transient accommodations taxes shall be paid into the state treasury each month within ten days after collection and shall be kept by the state director of finance in special accounts for distribution as provided in this subsection. As used in this subsection, "fiscal year" means the twelve-month period beginning on July 1 of a calendar year and ending on June 30 of the following calendar year." SECTION 12. Section 201B-8, Hawaii Revised Statutes, is repealed. ["§201B-8 Convention center enterprise special fund. (a) There is established the convention center enterprise special fund, into which shall be deposited: (1) A portion of the revenues from the transient accommodations tax, as provided by section 237D-6.5; (2) All revenues or moneys derived from the operations of the convention center to include all revenues from the food and beverage service, all revenues from the parking facilities or from any concession, and all revenues from the sale of souvenirs, logo items, or any other items offered for purchase at the convention center; (3) Private contributions, interest, compensation, gross or net revenues, proceeds, or other moneys derived from any source or for any purpose arising from the use of the convention center facility; and (4) Appropriations by the legislature for marketing the facility pursuant to section 201B-7(a)(7). (b) Moneys in the convention center enterprise special fund shall be used by the authority for the payment of expenses arising from any and all use, operation, maintenance, alteration, improvement, or any unforeseen or unplanned repairs of the convention center, including without limitation the food and beverage service and parking service provided at the convention center facility, the sale of souvenirs, logo items, or other items, for any future major repair, maintenance, and improvement of the convention center facility as a commercial enterprise or as a world class facility for conventions, entertainment, or public events, and for marketing the facility pursuant to section 201B-7(a)(7). (c) Moneys in the convention center enterprise special fund may be: (1) Placed in interest-bearing accounts; provided that the depository in which the money is deposited furnishes security as provided in section 38-3; or (2) Otherwise invested by the authority until such time as the moneys may be needed; provided that the authority shall limit its investments to those listed in section 36-21. All interest accruing from investment of the moneys shall be credited to the convention center enterprise special fund."] SECTION 13. All rights, powers, functions, and duties of the department of business, economic development, and tourism and Hawaii tourism authority are transferred to the department of accounting and general services as they pertain to the Hawaii convention center. 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 such 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 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 such 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 14. 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 business, economic development, and tourism, or the Hawaii tourism authority, relating to the functions transferred to the department of accounting and general services shall be transferred with the functions to which they relate. SECTION 15. All deeds, leases, contracts, loans, agreements, permits, or other documents executed or entered into by or on behalf of the department of business, economic development, and tourism or the Hawaii tourism authority as they pertain to the Hawaii convention center, pursuant to the provisions of the Hawaii Revised Statutes, that are reenacted or made applicable to the department of accounting and general services by this Act shall remain in full force and effect. Upon the effective date of this Act, every reference to the department of business, economic development, and tourism or the director, or the Hawaii tourism authority or the Hawaii tourism authority board, as they pertain to the Hawaii convention center, therein shall be construed as a reference to the department of accounting and general services or the comptroller, as appropriate. SECTION 16. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 17. This Act shall take effect upon its approval. INTRODUCED BY: _____________________________
4848
4949 SECTION 1. Section 23-76, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:
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5151 "(c) This section shall apply to the following:
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5353 (1) Section 237-24.3(4)--Amounts received by employment benefit plans and amounts received by nonprofit organizations or offices for the administration of employee benefit plans;
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5555 (2) Section 237-24.3(5)--Amounts received from food coupons under the federal food stamp program or vouchers under the Special Supplemental Foods Program for Women, Infants and Children;
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5757 (3) Section 237-24.3(6)--Amounts received from the sale of prescription drugs or prosthetic devices;
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5959 (4) Section 237-24.3(8)--Amounts received as dues by unincorporated merchants associations for advertising or promotion;
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6161 (5) Section 237-24.3(9)--Amounts received by labor organizations from real property leases;
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6363 (6) Section 237-24.75(2)--Reimbursements to the Hawaii convention center operator from the [Hawaii tourism authority;] department of accounting and general services;
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6565 (7) Section 237-24.75(3)--Reimbursements to professional employer organizations from client companies for employee wages and fringe benefits; and
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6767 (8) Section 209E-11--Amounts received by qualified businesses in enterprise zones."
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6969 SECTION 2. Section 26-6, Hawaii Revised Statutes, is amended to read as follows:
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7171 "§26-6 Department of accounting and general services. (a) The department of accounting and general services shall be headed by a single executive to be known as the comptroller.
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7373 (b) The department shall:
7474
7575 (1) Preaudit and conduct after-the-fact audits of the financial accounts of all state departments to determine the legality of expenditures and the accuracy of accounts;
7676
7777 (2) Report to the governor and to each regular session of the legislature as to the finances of each department of the State;
7878
7979 (3) Administer the state risk management program;
8080
8181 (4) Establish and manage motor pools;
8282
8383 (5) Manage the preservation and disposal of all records of the State;
8484
8585 (6) Undertake the program of centralized engineering and office leasing services, including operation and maintenance and lease buyback processing pursuant to subsection (d) of public buildings, for departments of the State;
8686
8787 (7) Undertake the functions of the state surveyor;
8888
8989 (8) Establish accounting and internal control systems;
9090
9191 (9) Under the direction of the chief information officer, provide centralized computer information management and processing services;
9292
9393 (10) Establish a program to provide a means for public access to public information and develop an information network for state government;
9494
9595 (11) Assume administrative responsibility for the office of information practices; [and]
9696
9797 (12) Enter into agreements for the use of the convention center facility for a period of up to ten years;
9898
9999 (13) Set and collect rents, fees, charges, or other payments for the lease, use, occupancy, or disposition of the convention center facility without regard to chapter 91;
100100
101101 (14) Marketing, management, use, operation, or maintenance of the convention center facility, including the purchase or sale of goods or services, logo items, concessions, sponsorships, and license agreements, or any use of the convention center facility as a commercial enterprise; provided that contracts issued pursuant to this paragraph for the marketing of all uses of the convention center facility may be issued separately from the management, use, operation, or maintenance of the facility;
102102
103103 (15) Notwithstanding chapter 171, acquire, lease as lessee or lessor, own, rent, hold, and dispose of the convention center facility in the exercise of its powers and the performance of its duties under this chapter; and
104104
105105 [(12)] (16) Approve state fleet acquisitions; provided that:
106106
107107 (A) Beginning January 1, 2022, all new light-duty motor vehicles that are passenger cars purchased for the State's fleet shall be zero-emission vehicles;
108108
109109 (B) Beginning as soon as practicable but no later than January 1, 2030, all new light-duty motor vehicles that are multipurpose passenger vehicles and trucks for the State's fleet shall be zero-emission vehicles; and
110110
111111 (C) The comptroller may authorize an exemption for new fleet vehicle purchases if zero-emission vehicles are demonstrated to be cost-prohibitive on a lifecycle basis or unsuitable for the vehicles' planned purpose, or if funds are unavailable.
112112
113113 For the purposes of this subsection:
114114
115115 "Light-duty motor vehicle" shall have the same meaning as contained in title 10 Code [[]of[]] Federal Regulations part 490.
116116
117117 "Multipurpose passenger vehicle" shall have the same meaning as contained in title 49 Code of Federal Regulations section 571.3.
118118
119119 "Passenger car" shall have the same meaning as contained in title 49 Code of Federal Regulations section 571.3.
120120
121121 "Truck" shall have the same meaning as contained in title 49 Code of Federal Regulations section 571.3.
122122
123123 "Zero-emission vehicle" shall have the same meaning as contained in title 40 Code of Federal Regulations section 88.102-94.
124124
125125 (c) The state communication system shall be established to:
126126
127127 (1) Facilitate implementation of the State's distributed information processing and information resource management plans;
128128
129129 (2) Improve data, voice, and video communications in state government;
130130
131131 (3) Provide a means for connectivity among the state, university, and county computer systems; and
132132
133133 (4) Provide a long-term means for public access to public information.
134134
135135 (d) The department shall establish, coordinate, and manage a program to facilitate facility agreements between the State and private investors for the sale of facilities, excluding facilities managed or controlled by the department of transportation, to private investors; provided that each facility agreement contains the following requirements:
136136
137137 (1) The State shall sell the facility to the private investor, who shall:
138138
139139 (A) Renovate, improve, or construct a facility for the State and may maintain the facility; and
140140
141141 (B) Lease the facility to the State, pursuant to a building lease;
142142
143143 (2) The land upon which the facility rests shall not be sold to the private investor; provided that the land may be leased at a nominal rate to the private investor for a term that would, at a minimum, allow the private investor to recover the capital investment that has been made to the facility, including depreciation; and
144144
145145 (3) The State shall have the option of purchasing the facility from the private investor for the remaining balance of the debt service costs incurred by the private investor at any time.
146146
147147 For purposes of this subsection:
148148
149149 "Building lease" means a contract between the department of accounting and general services and a private investor in which the private investor leases an improved facility to the department for a specified period of time.
150150
151151 "Facility" means a building under the management and control of any state department.
152152
153153 "Facility agreement" means an agreement between the State and a private investor that, at a minimum, includes a description of the work to be done, the sale price for the facility, the duration of the agreement, the roles and responsibilities of the State and the private investor, and the terms and conditions for the lease.
154154
155155 "Private investor" means a nongovernmental entity.
156156
157157 (e) The department may adopt rules as may be necessary or desirable for the operation and maintenance of public buildings; for the operation and implementation of a program to provide a means for public access to the State's information network system and public information; and for the implementation of facility agreements pursuant to subsection (d). The rules shall be adopted pursuant to chapter 91.
158158
159159 (f) The King Kamehameha celebration commission shall be placed within the department of accounting and general services for administrative purposes. The functions, duties, and powers, subject to the administrative control of the comptroller, and the composition of the commission shall be as heretofore provided by law.
160160
161161 (g) The functions and authority heretofore exercised by the comptroller, board of commissioners of public archives, the archivist, the disposal committee, and the insurance management, surplus property management, and central purchasing functions of the bureau of the budget and the nonhighway functions of the department of public works as heretofore constituted are transferred to the department of accounting and general services established by this chapter.
162162
163163 (h) The department of accounting and general services shall preserve and protect Washington Place, including the grounds and the historic residence situated on its premises at Miller and Beretania Streets in Honolulu. The department shall administer, manage, operate, and maintain Washington Place and the trust fund created under subsection (i).
164164
165165 (i) There is established a trust fund in the state treasury to be known as the Washington Place trust fund, into which shall be deposited:
166166
167167 (1) All rents and fees collected for the use of Washington Place and from activities conducted on the premises;
168168
169169 (2) All other money received for the fund from any other source; and
170170
171171 (3) All income and interest earned or accrued on moneys deposited into the trust fund.
172172
173173 All moneys deposited into the trust fund shall be expended by the department of accounting and general services and used exclusively to implement the provisions of subsection (h), including for staff salaries and fringe benefits, and shall not be transferred, nor subject to transfer, to the general fund or any other fund in the state treasury.
174174
175175 (j) There is established the convention center enterprise special fund, into which shall be deposited:
176176
177177 (1) A portion of the revenues from the transient accommodations tax, as provided by section 237D-6.5;
178178
179179 (2) All revenues or moneys derived from the operations of the convention center to include all revenues from the food and beverage service, all revenues from the parking facilities or from any concession, and all revenues from the sale of souvenirs, logo items, or any other items offered for purchase at the convention center;
180180
181181 (3) Private contributions, interest, compensation, gross or net revenues, proceeds, or other moneys derived from any source or for any purpose arising from the use of the convention center facility; and
182182
183183 (4) Appropriations by the legislature for marketing the facility pursuant to subsection (b)(14).
184184
185185 Moneys in the convention center enterprise special fund shall be used by the department for the payment of expenses arising from any and all use, operation, maintenance, alteration, improvement, or any unforeseen or unplanned repairs of the convention center, including without limitation the food and beverage service and parking service provided at the convention center facility, the sale of souvenirs, logo items, or other items, for any future major repair, maintenance, and improvement of the convention center facility as a commercial enterprise or as a world class facility for conventions, entertainment, or public events, and for marketing the facility pursuant to subsection (b)(14).
186186
187187 Moneys in the convention center enterprise special fund may be placed in interest-bearing accounts; provided that the depository in which the money is deposited furnishes security as provided in section 38-3 or otherwise invested by the department until such time as the moneys may be needed; provided that the department shall limit its investments to those listed in section 36-21. All interest accruing from investment of the moneys shall be credited to the convention center enterprise special fund."
188188
189189 SECTION 3. Section 36-27, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
190190
191191 "(a) Except as provided in this section, and notwithstanding any other law to the contrary, from time to time, the director of finance, for the purpose of defraying the prorated estimate of central service expenses of government in relation to all special funds, except the:
192192
193193 (1) Special out-of-school time instructional program fund under section 302A-1310;
194194
195195 (2) School cafeteria special funds of the department of education;
196196
197197 (3) Special funds of the University of Hawaii;
198198
199199 (4) Convention center enterprise special fund under section [201B-8;] 26-6(j);
200200
201201 (5) Special funds established by section 206E-6;
202202
203203 (6) Aloha Tower fund created by section 206J-17;
204204
205205 (7) Funds of the employees' retirement system created by section 88-109;
206206
207207 (8) Hawaii hurricane relief fund established under chapter 431P;
208208
209209 (9) Hawaii health systems corporation special funds and the subaccounts of its regional system boards;
210210
211211 (10) Universal service fund established under section 269-42;
212212
213213 (11) Emergency and budget reserve fund under section 328L-3;
214214
215215 (12) Public schools special fees and charges fund under section 302A-1130;
216216
217217 (13) Sport fish special fund under section 187A-9.5;
218218
219219 (14) Neurotrauma special fund under section 321H-4;
220220
221221 (15) Glass advance disposal fee established by section 342G-82;
222222
223223 (16) Center for nursing special fund under section 304A-2163;
224224
225225 (17) Passenger facility charge special fund established by section 261-5.5;
226226
227227 (18) Solicitation of funds for charitable purposes special fund established by section 467B-15;
228228
229229 (19) Land conservation fund established by section 173A-5;
230230
231231 (20) Court interpreting services revolving fund under section 607-1.5;
232232
233233 (21) Trauma system special fund under section 321-22.5;
234234
235235 (22) Hawaii cancer research special fund;
236236
237237 (23) Community health centers special fund;
238238
239239 (24) Emergency medical services special fund;
240240
241241 (25) Rental motor vehicle customer facility charge special fund established under section 261-5.6;
242242
243243 (26) Shared services technology special fund under section 27-43;
244244
245245 (27) Automated victim information and notification system special fund established under section 353-136;
246246
247247 (28) Deposit beverage container deposit special fund under section 342G-104;
248248
249249 (29) Hospital sustainability program special fund under section 346G-4;
250250
251251 (30) Nursing facility sustainability program special fund under section 346F-4;
252252
253253 (31) Hawaii 3R's school improvement fund under section 302A-1502.4;
254254
255255 (32) After-school plus program revolving fund under section 302A-1149.5;
256256
257257 (33) Civil monetary penalty special fund under section 321-30.2; and
258258
259259 [[](34)[]]Stadium development special fund under section 109-3.5,
260260
261261 shall deduct five per cent of all receipts of all other special funds, which deduction shall be transferred to the general fund of the State and become general realizations of the State. All officers of the State and other persons having power to allocate or disburse any special funds shall cooperate with the director in effecting these transfers. To determine the proper revenue base upon which the central service assessment is to be calculated, the director shall adopt rules pursuant to chapter 91 for the purpose of suspending or limiting the application of the central service assessment of any fund. No later than twenty days prior to the convening of each regular session of the legislature, the director shall report all central service assessments made during the preceding fiscal year."
262262
263263 SECTION 4. Section 36-30, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
264264
265265 "(a) Each special fund, except the:
266266
267267 (1) Special out-of-school time instructional program fund under section 302A-1310;
268268
269269 (2) School cafeteria special funds of the department of education;
270270
271271 (3) Special funds of the University of Hawaii;
272272
273273 (4) Special funds established by section 206E-6;
274274
275275 (5) Aloha Tower fund created by section 206J-17;
276276
277277 (6) Funds of the employees' retirement system created by section 88-109;
278278
279279 (7) Hawaii hurricane relief fund established under chapter 431P;
280280
281281 (8) Convention center enterprise special fund established under section [201B-8;] 26-6(j);
282282
283283 (9) Hawaii health systems corporation special funds and the subaccounts of its regional system boards;
284284
285285 (10) Universal service fund established under section 269-42;
286286
287287 (11) Emergency and budget reserve fund under section 328L-3;
288288
289289 (12) Public schools special fees and charges fund under section 302A-1130;
290290
291291 (13) Sport fish special fund under section 187A-9.5;
292292
293293 (14) Neurotrauma special fund under section 321H-4;
294294
295295 (15) Center for nursing special fund under section 304A-2163;
296296
297297 (16) Passenger facility charge special fund established by section 261-5.5;
298298
299299 (17) Court interpreting services revolving fund under section 607-1.5;
300300
301301 (18) Trauma system special fund under section 321-22.5;
302302
303303 (19) Hawaii cancer research special fund;
304304
305305 (20) Community health centers special fund;
306306
307307 (21) Emergency medical services special fund;
308308
309309 (22) Rental motor vehicle customer facility charge special fund established under section 261-5.6;
310310
311311 (23) Shared services technology special fund under section 27-43;
312312
313313 (24) Nursing facility sustainability program special fund established pursuant to section 346F-4;
314314
315315 (25) Automated victim information and notification system special fund established under section 353-136;
316316
317317 (26) Hospital sustainability program special fund under section 346G-4;
318318
319319 (27) Civil monetary penalty special fund under section 321-30.2; and
320320
321321 [[](28)[]]Stadium development special fund under section 109-3.5,
322322
323323 shall be responsible for its pro rata share of the administrative expenses incurred by the department responsible for the operations supported by the special fund concerned."
324324
325325 SECTION 5. Section 46-11, Hawaii Revised Statutes, is amended to read as follows:
326326
327327 "§46-11 Federal flood insurance. The [Hawaii tourism authority] department of accounting and general services in regard to the convention center district and the mayor or executive officer and the council of the various counties, in regard to the respective counties, may participate and apply on behalf of their respective district and counties for flood insurance coverage pursuant to any applicable provisions of Public Law 1016, Eighty-fourth Congress, Second Session, (70 Stat. 1078). The [Hawaii tourism authority,] department of accounting and general services, in regard to the convention center district, and the mayor or executive officer and the council of the various counties, in regard to the respective counties, shall be vested with the functions, powers, and duties which are necessary to enable their respective district and counties to qualify, participate, and apply for the flood insurance coverage."
328328
329329 SECTION 6. Section 201B-1, Hawaii Revised Statutes, is amended by deleting the definition of "convention center facility".
330330
331331 ["Convention center facility" or "convention center" means any combination of land, buildings, and improvements thereon, acquired or developed by the State, and includes exhibition halls, meeting rooms, a plenary session hall, and support space that reflect a Hawaiian sense of place; any other structure or facility required or useful for the operation of a convention center, including commercial, office, community service, parking, garage, and other supporting service structures; and, all necessary, useful, and related equipment, furnishings, and appurtenances.]
332332
333333 SECTION 7. Section 201B-3, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
334334
335335 "(a) Except as otherwise limited by this chapter, the authority may:
336336
337337 (1) Sue and be sued;
338338
339339 (2) Have a seal and alter the same at its pleasure;
340340
341341 (3) Through its president and chief executive officer, make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this chapter; provided that the authority may enter into contracts and agreements for a period of up to five years, subject to the availability of funds; [and provided further that the authority may enter into agreements for the use of the convention center facility for a period of up to ten years;]
342342
343343 (4) Make and alter bylaws for its organization and internal management;
344344
345345 (5) Unless otherwise provided in this chapter, adopt rules in accordance with chapter 91 with respect to its projects, operations, properties, and facilities;
346346
347347 (6) Through its president and chief executive officer, represent the authority in communications with the governor and the legislature;
348348
349349 (7) Through its president and chief executive officer, provide for the appointment of officers, agents, a sports coordinator, and employees, subject to the approval of the board, prescribing their duties and qualifications, and fixing their salaries, without regard to chapters 76 and 78, if funds have been appropriated by the legislature and allotted as provided by law;
350350
351351 (8) Through its president and chief executive officer, purchase supplies, equipment, or furniture;
352352
353353 (9) Through its president and chief executive officer, allocate the space or spaces that are to be occupied by the authority and appropriate staff;
354354
355355 (10) Through its president and chief executive officer, engage the services of qualified persons to implement the State's tourism marketing plan or portions thereof as determined by the authority;
356356
357357 (11) Through its president and chief executive officer, engage the services of consultants on a contractual basis for rendering professional and technical assistance and advice;
358358
359359 (12) Procure insurance against any loss in connection with its property and other assets and operations in amounts and from insurers as it deems desirable;
360360
361361 (13) Contract for or accept revenues, compensation, proceeds, and gifts or grants in any form from any public agency or any other source;
362362
363363 (14) Develop, coordinate, and implement state policies and directions for tourism and related activities taking into account the economic, social, and physical impacts of tourism on the State, Hawaii's natural environment, and areas frequented by visitors;
364364
365365 (15) Have a permanent, strong focus on Hawaii brand management;
366366
367367 (16) Coordinate all agencies and advise the private sector in the development of tourism-related activities and resources;
368368
369369 (17) Work to eliminate or reduce barriers to travel to provide a positive and competitive business environment, including coordinating with the department of transportation on issues affecting airlines and air route development;
370370
371371 (18) Market and promote sports-related activities and events;
372372
373373 (19) Coordinate the development of new products with the counties and other persons in the public sector and private sector, including the development of sports, culture, health and wellness, education, technology, agriculture, and nature tourism;
374374
375375 (20) Establish a public information and educational program to inform the public of tourism and tourism-related problems;
376376
377377 (21) Encourage the development of tourism educational, training, and career counseling programs;
378378
379379 (22) Establish a program to monitor, investigate, and respond to complaints about problems resulting directly or indirectly from the tourism industry and taking appropriate action as necessary; and
380380
381381 (23) Develop and implement emergency measures to respond to any adverse effects on the tourism industry, pursuant to section 201B-9[;].
382382
383383 [(24) Set and collect rents, fees, charges, or other payments for the lease, use, occupancy, or disposition of the convention center facility without regard to chapter 91;
384384
385385 (25) Notwithstanding chapter 171, acquire, lease as lessee or lessor, own, rent, hold, and dispose of the convention center facility in the exercise of its powers and the performance of its duties under this chapter; and
386386
387387 (26) Acquire by purchase, lease, or otherwise, and develop, construct, operate, own, manage, repair, reconstruct, enlarge, or otherwise effectuate, either directly or through developers, a convention center facility.]"
388388
389389 SECTION 8. Section 201B-7, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
390390
391391 "(a) The authority may enter into contracts and agreements that include the following:
392392
393393 (1) Tourism promotion, marketing, and development;
394394
395395 (2) Market development-related research;
396396
397397 (3) Product development and diversification issues focused on visitors;
398398
399399 (4) Promotion, development, and coordination of sports-related activities and events;
400400
401401 (5) Promotion of Hawaii, through a coordinated statewide effort, as a place to do business, including high technology business, and as a business destination;
402402
403403 (6) Reduction of barriers to travel;
404404
405405 [(7) Marketing, management, use, operation, or maintenance of the convention center facility, including the purchase or sale of goods or services, logo items, concessions, sponsorships, and license agreements, or any use of the convention center facility as a commercial enterprise; provided that effective January 1, 2020, and thereafter, contracts issued pursuant to this paragraph for the marketing of all uses of the convention center facility may be issued separately from the management, use, operation, or maintenance of the facility;
406406
407407 (8)] (7) Tourism research and statistics to:
408408
409409 (A) Measure and analyze tourism trends;
410410
411411 (B) Provide information and research to assist in the development and implementation of state tourism policy; and
412412
413413 (C) Provide tourism information on:
414414
415415 (i) Visitor arrivals, visitor characteristics, and expenditures;
416416
417417 (ii) The number of transient accommodation units available, occupancy rates, and room rates;
418418
419419 (iii) Airline-related data including seat capacity and number of flights;
420420
421421 (iv) The economic, social, and physical impacts of tourism on the State; and
422422
423423 (v) The effects of the marketing programs of the authority on the measures of effectiveness developed pursuant to section 201B-6(b); and
424424
425425 [(9)] (8) Any and all other activities necessary to carry out the intent of this chapter;
426426
427427 provided that the authority shall periodically submit a report of the contracts and agreements entered into by the authority to the governor, the speaker of the house of representatives, and the president of the senate."
428428
429429 SECTION 9. Section 201B-7.5, Hawaii Revised Statutes, is amended to read as follows:
430430
431431 "[[]§201B-7.5[]] Applicability of Hawaii public procurement code; convention center contractor; construction contracts. The construction contracts for the maintenance of the convention center facility by the private contractor that operates the convention center, by its direct or indirect receipt of, and its expenditure of, public funds from the department of [business, economic development, and tourism or the authority, or both,] accounting and general services shall be subject to part III of chapter 103D."
432432
433433 SECTION 10. Section 237-24.75, Hawaii Revised Statutes, is amended to read as follows:
434434
435435 "§237-24.75 Additional exemptions. In addition to the amounts exempt under section 237-24, this chapter shall not apply to:
436436
437437 (1) Amounts received as a beverage container deposit collected under chapter 342G, part VIII;
438438
439439 (2) Amounts received by the operator of the Hawaii convention center for reimbursement of costs or advances made pursuant to a contract with the [Hawaii tourism authority] department of accounting and general services under section [201B‑7;] 26-6; and
440440
441441 (3) Amounts received by a professional employer organization that is registered with the department of labor and industrial relations pursuant to chapter 373L, from a client company equal to amounts that are disbursed by the professional employer organization for employee wages, salaries, payroll taxes, insurance premiums, and benefits, including retirement, vacation, sick leave, health benefits, and similar employment benefits with respect to covered employees at a client company; provided that this exemption shall not apply to amounts received by a professional employer organization after:
442442
443443 (A) Notification from the department of labor and industrial relations that the professional employer organization has not fulfilled or maintained the registration requirements under this chapter; or
444444
445445 (B) A determination by the department that the professional employer organization has failed to pay any tax withholding for covered employees or any federal or state taxes for which the professional employer organization is responsible.
446446
447447 As used in this paragraph, "professional employer organization", "client company", and "covered employee" shall have the meanings provided in section 373L-1."
448448
449449 SECTION 11. Section 237D-6.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
450450
451451 "(b) Except for the revenues collected pursuant to section 237D-2(e), revenues collected under this chapter shall be distributed in the following priority, with the excess revenues to be deposited into the general fund:
452452
453453 (1) $1,500,000 shall be allocated to the Turtle Bay conservation easement special fund beginning July 1, 2015, for the reimbursement to the state general fund of debt service on reimbursable general obligation bonds, including ongoing expenses related to the issuance of the bonds, the proceeds of which were used to acquire the conservation easement and other real property interests in Turtle Bay, Oahu, for the protection, preservation, and enhancement of natural resources important to the State, until the bonds are fully amortized;
454454
455455 (2) $11,000,000 shall be allocated to the convention center enterprise special fund established under section [201B-8;] 26-6(j);
456456
457457 (3) An allocation shall be deposited into the tourism emergency special fund, established in section 201B-10, in a manner sufficient to maintain a fund balance of $5,000,000 in the tourism emergency special fund; and
458458
459459 (4) $3,000,000 shall be allocated to the special land and development fund established under section 171-19; provided that the allocation shall be expended in accordance with the Hawaii tourism authority strategic plan for:
460460
461461 (A) The protection, preservation, maintenance, and enhancement of natural resources, including beaches, important to the visitor industry;
462462
463463 (B) Planning, construction, and repair of facilities; and
464464
465465 (C) Operation and maintenance costs of public lands, including beaches, connected with enhancing the visitor experience.
466466
467467 All transient accommodations taxes shall be paid into the state treasury each month within ten days after collection and shall be kept by the state director of finance in special accounts for distribution as provided in this subsection.
468468
469469 As used in this subsection, "fiscal year" means the twelve-month period beginning on July 1 of a calendar year and ending on June 30 of the following calendar year."
470470
471471 SECTION 12. Section 201B-8, Hawaii Revised Statutes, is repealed.
472472
473473 ["§201B-8 Convention center enterprise special fund. (a) There is established the convention center enterprise special fund, into which shall be deposited:
474474
475475 (1) A portion of the revenues from the transient accommodations tax, as provided by section 237D-6.5;
476476
477477 (2) All revenues or moneys derived from the operations of the convention center to include all revenues from the food and beverage service, all revenues from the parking facilities or from any concession, and all revenues from the sale of souvenirs, logo items, or any other items offered for purchase at the convention center;
478478
479479 (3) Private contributions, interest, compensation, gross or net revenues, proceeds, or other moneys derived from any source or for any purpose arising from the use of the convention center facility; and
480480
481481 (4) Appropriations by the legislature for marketing the facility pursuant to section 201B-7(a)(7).
482482
483483 (b) Moneys in the convention center enterprise special fund shall be used by the authority for the payment of expenses arising from any and all use, operation, maintenance, alteration, improvement, or any unforeseen or unplanned repairs of the convention center, including without limitation the food and beverage service and parking service provided at the convention center facility, the sale of souvenirs, logo items, or other items, for any future major repair, maintenance, and improvement of the convention center facility as a commercial enterprise or as a world class facility for conventions, entertainment, or public events, and for marketing the facility pursuant to section 201B-7(a)(7).
484484
485485 (c) Moneys in the convention center enterprise special fund may be:
486486
487487 (1) Placed in interest-bearing accounts; provided that the depository in which the money is deposited furnishes security as provided in section 38-3; or
488488
489489 (2) Otherwise invested by the authority until such time as the moneys may be needed; provided that the authority shall limit its investments to those listed in section 36-21.
490490
491491 All interest accruing from investment of the moneys shall be credited to the convention center enterprise special fund."]
492492
493493 SECTION 13. All rights, powers, functions, and duties of the department of business, economic development, and tourism and Hawaii tourism authority are transferred to the department of accounting and general services as they pertain to the Hawaii convention center.
494494
495495 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.
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497497 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 such 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 that subsequent changes in status may be made pursuant to applicable civil service and compensation laws.
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499499 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 such officer or employee possesses the minimum qualifications for the position to which transferred or appointed.
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501501 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.
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503503 SECTION 14. 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 business, economic development, and tourism, or the Hawaii tourism authority, relating to the functions transferred to the department of accounting and general services shall be transferred with the functions to which they relate.
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505505 SECTION 15. All deeds, leases, contracts, loans, agreements, permits, or other documents executed or entered into by or on behalf of the department of business, economic development, and tourism or the Hawaii tourism authority as they pertain to the Hawaii convention center, pursuant to the provisions of the Hawaii Revised Statutes, that are reenacted or made applicable to the department of accounting and general services by this Act shall remain in full force and effect. Upon the effective date of this Act, every reference to the department of business, economic development, and tourism or the director, or the Hawaii tourism authority or the Hawaii tourism authority board, as they pertain to the Hawaii convention center, therein shall be construed as a reference to the department of accounting and general services or the comptroller, as appropriate.
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507507 SECTION 16. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
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509509 SECTION 17. This Act shall take effect upon its approval.
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513513 INTRODUCED BY: _____________________________
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515515 INTRODUCED BY:
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517517 _____________________________
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523523 Report Title: DAGS; HTA; DBEDT; State Convention Center; Transfer of Oversight; Special Fund Description: Transfers oversight of the Hawaii Convention Center and the Hawaii Convention Center Enterprise Special Fund from the Hawaii Tourism Authority to the Department of Accounting and General Services. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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531531 Report Title:
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533533 DAGS; HTA; DBEDT; State Convention Center; Transfer of Oversight; Special Fund
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537537 Description:
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539539 Transfers oversight of the Hawaii Convention Center and the Hawaii Convention Center Enterprise Special Fund from the Hawaii Tourism Authority to the Department of Accounting and General Services.
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547547 The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.