HB 2118: SFCA; King Kamehameha Celebration Commission; DAGS; DBEDT; Comptroller; Works of Art Special Fund; Transfer; Positions; Appropriation
- Session Year: 2025-2026
- House: House
- Latest Version Date: 2026-03-27
Current Status:
Failed
(2026-03-30: Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM.)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Final Decking
Enacted
Transfers the State Foundation on Culture and the Arts and the King Kamehameha Celebration Commission from the Department of Accounting and General Services to the Department of Business, Economic Development, and Tourism. Transfers certain authority and responsibilities held by the Comptroller regarding the Works of Art Special Fund to the Director of Business, Economic Development, and Tourism. Appropriates funds for positions within the Department of Business, Economic Development, and Tourism. Effective 1/1/3000. (SD1)
Transfers the State Foundation on Culture and the Arts and the King Kamehameha Celebration Commission from the Department of Accounting and General Services to the Department of Business, Economic Development, and Tourism. Transfers certain authority and responsibilities held by the Comptroller regarding the Works of Art Special Fund to the Director of Business, Economic Development, and Tourism. Appropriates funds for positions within the Department of Business, Economic Development, and Tourism. Effective 7/1/3000. (HD2)
Transfers the State Foundation on Culture and the Arts and the King Kamehameha Celebration Commission from the Department of Accounting and General Services to the Department of Business, Economic Development, and Tourism. Transfers certain authority and responsibilities held by the Comptroller regarding the Works of Art Special Fund to the Director of Business, Economic Development, and Tourism. Appropriates funds for positions within the Department of Business, Economic Development, and Tourism. Effective 7/1/3000. (HD1)
Transfers the State Foundation on Culture and the Arts and the King Kamehameha Celebration Commission from the Department of Accounting and General Services to the Department of Business, Economic Development, and Tourism. Transfers certain authority and responsibilities held by the Comptroller regarding the Works of Art Special Fund to the Director of Business, Economic Development, and Tourism. Appropriates funds for positions within the Department of Business, Economic Development, and Tourism.
|
HOUSE OF REPRESENTATIVES |
H.B. NO. |
2118 |
|
THIRTY-THIRD LEGISLATURE, 2026 |
H.D. 2 |
|
|
STATE OF HAWAII |
S.D. 1 |
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
RELATING TO THE DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 8-5, Hawaii Revised Statutes, is amended as follows:
1. By amending subsection (a) to read:
"(a) There shall be a commission to be known as
the King Kamehameha celebration commission placed within the department of [accounting
and general services] business, economic development, and tourism
for administrative purposes. The
commission shall consist of fifteen members to be appointed by the governor in
the manner provided by section 26-34.
The appointments shall be made from the following organizations, with
one member from each organization:
(1) Royal Order of Kamehameha I;
(2) ʻAhahui Kaʻahumanu;
(3) Hale O Nā Aliʻi O Hawaiʻi ʻAhahui Poʻo;
(4) Daughters and Sons of Hawaiian Warriors Māmakakaua;
(5) Kamehameha Schools Alumni Association;
(6) Association of Hawaiian Civic Clubs;
(7) Waimānalo Hawaiian Homes Association;
(8) Daughters of Hawaii;
(9) Kapahulu Music Club; and
(10) Papakōlea Community Association.
Each organization shall maintain a certificate of good standing issued by the department of commerce and consumer affairs and an active membership list. Each organization may recommend for appointment to the commission persons capable of providing administrative guidance to the commission with regard to knowledge of Native Hawaiian culture, history and protocols, legal issues, business, accounting, marketing, philanthropy, or public relations.
In addition, the governor shall appoint one member to the commission from each of the following islands: Kauaʻi, Lānaʻi, Maui, Molokaʻi, and Hawaiʻi. Each of these members shall be a resident of the respective island that the member represents. The governor shall appoint persons capable of providing administrative guidance with regard to legal issues, business, accounting, marketing, philanthropy, or public relations."
2. By amending subsections (c) and (d) to read:
"(c) The members of the King Kamehameha
celebration commission shall serve without compensation, but shall be entitled
to reimbursement for travel and necessary expenses while attending meetings and
while in discharge of their duties. The
[comptroller] director of business, economic development, and tourism
shall reimburse the members of the King Kamehameha celebration commission for
all necessary expenses incurred during the discharge of their duties.
(d) The commission may appoint and dismiss an
arts program specialist and a part-time clerk typist, without regard to chapter
76, who shall serve at the commission's pleasure, and whose salaries shall be
provided through fees, public contributions, and private donations. The commission, by majority vote, shall
appoint an executive director who shall be familiar with the people and culture
of [Hawaiʻi,]
the State, and shall serve without regard to chapter 76 for a term to be
determined by the commission. Except for
matters undertaken by the [comptroller] director of business,
economic development, and tourism pursuant to subsection (f), the executive
director shall be responsible for all fiscal and administrative matters,
including securing public contributions and private foundation grants or
donations. The executive director shall
also be responsible for developing and administering programs as the commission
may direct. The executive director may
be removed for cause at any time by a two-thirds vote of all commission
members."
3. By amending subsection (f) to read:
"(f) The [comptroller] director of
business, economic development, and tourism shall account for all moneys
appropriated by the legislature, may raise funds to defray administrative
costs, and may accept donations of money and personal property on behalf of the
commission; provided that all donations accepted from private sources shall be
expended in the manner prescribed by the contributor, and all moneys received
from all sources shall be deposited into the commission's trust account."
SECTION 2. Section 9-2, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) There is hereby created a state foundation on
culture and the arts, which shall be placed within the department of [accounting
and general services] business, economic development, and tourism
for administrative purposes."
SECTION 3. Section 9-3, Hawaii Revised Statutes, is amended to read as follows:
"§9-3 Duties. The foundation shall:
(1) Assist in coordinating the plans, programs, and activities of individuals, associations, corporations, and agencies concerned with the preservation and furtherance of culture and the arts and history and the humanities;
(2) Establish written standards and criteria by which grant contracts shall be evaluated;
(3) Appraise the availability, adequacy, and accessibility of culture and the arts and history and the humanities to all persons throughout the State and devise programs whereby culture and the arts and history and the humanities can be brought to those who would otherwise not have the opportunity to participate;
(4) Stimulate, guide, and promote culture and the arts and history and the humanities throughout the State;
(5) Devise and recommend legislative and administrative action for the preservation and furtherance of culture and the arts and history and the humanities;
(6) Study the availability of private and governmental grants for the promotion and furtherance of culture and the arts and history and the humanities;
(7) Through its executive director:
(A) Administer funds allocated by grant, gift, or bequest to the foundation; accept, hold, disburse, and allocate funds that may become available from other governmental and private sources; provided that all those funds shall be disbursed or allocated in compliance with any specific designation stated by the donor and in the absence of any designation, the funds shall be disbursed or allocated for the promotion and furtherance of culture and the arts and history and the humanities; and
(B) Accept, hold, disburse, and allocate public funds that are made available to the foundation by the legislature for disbursement or allocation, pursuant to the standards and procedures established in part II, for the promotion and furtherance of culture and the arts and history and the humanities;
(8) Submit an annual report with recommendations to the governor and legislature, prior to February 1, of each year. Annual reports shall include the total number and amount of gifts and other grants and income received, payroll disbursements, contracts entered into, and progress and accomplishments made during the year, including the efforts of the Hawaii arts education partners and its progress in implementing the Hawaii arts education strategic plan and the accomplishments of the art in public places and relocatable works of art programs and the state art museum;
(9) Convene the Hawaii arts education partners,
which is composed of the department of education, the colleges of education and
arts and humanities of the University of Hawaii at Manoa, the Hawaii
Association of Independent Schools, and the Hawaii Arts Alliance [for
Art Education], to fully implement the terms of the Hawaii arts education
strategic plan;
(10) Display student art works in public buildings,
sponsor student art displays, promote arts education, and in other ways
encourage the development of creative talent among the young people of [Hawaii;]
the State;
(11) In cooperation with qualified organizations,
conduct research, studies, and investigations in the fields of ethnohistory and
the humanities[:] by:
(A) [Make, publish, and distribute] Making,
publishing, and distributing works documenting the contributions of
individual ethnic groups in their relationship to one another and to the whole
population of [Hawaii;] the State;
(B) [Place] Placing ethnohistorical
and cultural materials developed by the foundation or received by the
foundation as gifts and donations in public archives, libraries, and other
suitable institutions accessible to the public; and
(C) [Maintain] Maintaining a
register of the location of [such] the materials;
(12) Cooperate with and assist the department of land and natural resources and other state agencies in developing and implementing programs relating to historic preservation, research, restoration, and presentation, as well as museum activities;
(13) Establish an individual artist fellowship
program to encourage artists to remain and work in [Hawaii] the State
and to reaffirm the importance of [Hawaii's] state artists and
their cultural and economic contributions to the State by:
(A) Recognizing and honoring [Hawaii's] the
State's exceptionally talented visual and performing artists for their
outstanding work in and commitment to the arts; and
(B) Enabling these artists to further their artistic goals;
(14) In consultation with the [comptroller] director of business, economic
development, and tourism and affected agencies and departments, administer
the art in public places and relocatable works of art programs established
pursuant to section 103-8.5; and
(15) Administer the operations of the state art museum established pursuant to section 9-22."
SECTION 4. Section 9-5, Hawaii Revised Statutes, is amended to read as follows:
"[[]§9-5[]] Rules. The foundation shall
adopt rules in consultation with the [comptroller] director
of business, economic development, and tourism for the purposes of administering this
chapter. [Such] The rules
shall be adopted in accordance with chapter 91."
SECTION 5. 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) Have the discretion to employ persons within the comptroller's office who shall be exempt from chapters 76 and 89 in support of communications, change management, and business process improvement programs as part of the State's information technology modernization efforts; provided that the persons shall be members of the state employees' retirement system and shall be eligible to receive the benefits of any state employee benefit program generally applicable to officers and employees of the State;
(10) Provide centralized computer information management and processing services through the chief information officer;
(11) Establish a program to provide a means for public access to public information and develop an information network for state government;
(12) Assume administrative responsibility for the office of information practices; and
(13) 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" has the same meaning as defined in title 10 Code of Federal Regulations part 490.
"Multipurpose passenger vehicle" has the same meaning as defined in title 49 Code of Federal Regulations section 571.3.
"Passenger car" has the same meaning as defined in title 49 Code of Federal Regulations section 571.3.
"Truck" has the same meaning as defined in title 49 Code of Federal Regulations section 571.3.
"Zero-emission vehicle" has the same meaning as specified in title 40 Code of Federal Regulations section 88.1.
(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)] (f) 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] shall be transferred to the department of
accounting and general services established by this chapter.
[(h)]
(g) 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).] (h).
[(i)]
(h) 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),] (g), 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."
SECTION 6. Section 103-8.5, Hawaii Revised Statutes, is amended as follows:
1. By amending subsections (c) through (e) to read:
"(c) The one per cent amount, which is included in
all general obligation bond fund capital improvement appropriations, shall be
calculated at the time that each appropriation becomes available. The [comptroller] director of
business, economic development, and tourism shall cause one per cent of
each general obligation bond fund capital improvement appropriation designated
for the construction or renovation of state buildings to be transferred into a
general obligation bond fund appropriation the legislature may make
specifically for deposits to the works of art special fund after availability
of moneys from the appropriations. Each
agency receiving capital improvement appropriations shall calculate the one per
cent amount and transfer the appropriation into a general obligation bond fund
appropriation the legislature may make specifically for deposits to the works
of art special fund.
(d) The [comptroller] director
of business, economic development, and tourism
and the state foundation on culture and the arts shall decide on the specific
art objects to acquire, giving first consideration to placing appropriate
pieces of art at the locations of the original appropriation.
[The]
Notwithstanding any law to the contrary, selection of, commissioning
artists for, reviewing of design, execution, and placement of, and the
acceptance of works of art shall be the responsibility of the [comptroller] director of business,
economic development, and tourism and the state
foundation on culture and the arts in consultation with the affected agency or
department.
Expenditures
from the works of art special fund shall be made by the [comptroller.] director
of business, economic development, and tourism.
(e) The [comptroller] director
of business, economic development, and tourism
shall:
(1) Provide each agency receiving capital improvement appropriations with information regarding items that shall be included and excluded from the one per cent amount;
(2) Ensure that each agency calculates its one per cent amount correctly;
(3) Ensure that each agency transfers the correct amount of each appropriation to a separate appropriation made for deposits to the works of art special fund; and
(4) Transfer to the works of art special fund the annual transfer amount, as defined in subsection (i), from an appropriation the legislature may make for deposits to the works of art special fund."
2. By amending subsection (h) to read:
"(h) The [comptroller] director
of business, economic development, and tourism
and the executive director of the state foundation on culture and the
arts shall track amounts transferred to the works of art special fund, the
use of all transferred amounts, and the timing of the use of all transferred
amounts by appropriation and date of transfer."
SECTION 7. 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 accounting and general services relating to the functions transferred to the department of business, economic development, and tourism shall be transferred with the functions to which they relate.
SECTION 8. All rights, powers, functions, and duties of the department of accounting and general services relating to the functions transferred to the department of business, economic development, and tourism shall be transferred with the functions to which they relate.
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 the 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; 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 9. All rules, policies, procedures, guidelines, and other material adopted or developed by the department of accounting and general services to implement provisions of the Hawaii Revised Statutes that are reenacted or made applicable to the department of business, economic development, and tourism by this Act shall remain in full force and effect until amended or repealed by the department of business, economic development, and tourism pursuant to chapter 91, Hawaii Revised Statutes.
In the interim, every reference to the department of accounting and general services or comptroller in those rules, policies, procedures, guidelines, and other material is amended to refer to the department of business, economic development, and tourism or director of business, economic development, and tourism, as appropriate.
SECTION 10. All deeds, leases, contracts, loans, agreements, permits, or other documents executed or entered into by or on behalf of the department of accounting and general services, pursuant to the provisions of the Hawaii Revised Statutes that are reenacted or made applicable to the department of business, economic development, and tourism by this Act shall remain in full force and effect. Upon the effective date of this Act, every reference to the department of accounting and general services or the comptroller therein shall be construed as a reference to the department of business, economic development, and tourism or the director of business, economic development, and tourism, as appropriate.
SECTION 11. 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 accounting and general services relating to the functions transferred to the department of business, economic development, and tourism shall be transferred with the functions to which they relate.
SECTION 12. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2026-2027 for the establishment of one full-time equivalent (1.0 FTE) temporary administrator position within the administrative services office of the department of business, economic development, and tourism to assist with the transfer.
The sum appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.
SECTION 13. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2026-2027 for the establishment of one full-time equivalent (1.0 FTE) legislative coordinator position within the department of business, economic development, and tourism to support the state foundation on culture and the arts in the transition.
The sum appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.
SECTION 14. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 15. This Act shall take effect on January 1, 3000.
Report Title:
SFCA; King Kamehameha Celebration Commission; DAGS; DBEDT; Comptroller; Works of Art Special Fund; Transfer; Positions; Appropriation
Description:
Transfers the State Foundation on Culture and the Arts and the King Kamehameha Celebration Commission from the Department of Accounting and General Services to the Department of Business, Economic Development, and Tourism. Transfers certain authority and responsibilities held by the Comptroller regarding the Works of Art Special Fund to the Director of Business, Economic Development, and Tourism. Appropriates funds for positions within the Department of Business, Economic Development, and Tourism. Effective 1/1/3000. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
|
HOUSE OF REPRESENTATIVES |
H.B. NO. |
2118 |
|
THIRTY-THIRD LEGISLATURE, 2026 |
H.D. 2 |
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
RELATING TO THE DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 8-5, Hawaii Revised Statutes, is amended as follows:
1. By amending subsection (a) to read:
"(a) There shall be a commission to be known as
the King Kamehameha celebration commission placed within the department of [accounting
and general services] business, economic development, and tourism
for administrative purposes. The
commission shall consist of fifteen members to be appointed by the governor in
the manner provided by section 26-34.
The appointments shall be made from the following organizations, with
one member from each organization:
(1) Royal Order of Kamehameha I;
(2) ʻAhahui Kaʻahumanu;
(3) Hale O Nā Aliʻi O Hawaiʻi ʻAhahui Poʻo;
(4) Daughters and Sons of Hawaiian Warriors Māmakakaua;
(5) Kamehameha Schools Alumni Association;
(6) Association of Hawaiian Civic Clubs;
(7) Waimānalo Hawaiian Homes Association;
(8) Daughters of Hawaii;
(9) Kapahulu Music Club; and
(10) Papakōlea Community Association.
Each organization shall maintain a certificate of good standing issued by the department of commerce and consumer affairs and an active membership list. Each organization may recommend for appointment to the commission persons capable of providing administrative guidance to the commission with regard to knowledge of Hawaiian culture, history and protocols, legal issues, business, accounting, marketing, philanthropy, or public relations.
In addition, the governor shall appoint one member to the commission from each of the following islands: Kauaʻi, Lānaʻi, Maui, Molokaʻi, and Hawaiʻi. Each of these members shall be a resident of the respective island that the member represents. The governor shall appoint persons capable of providing administrative guidance with regard to legal issues, business, accounting, marketing, philanthropy, or public relations."
2. By amending subsections (c) and (d) to read:
"(c) The members of the King Kamehameha
celebration commission shall serve without compensation, but shall be entitled
to reimbursement for travel and necessary expenses while attending meetings and
while in discharge of their duties. The
[comptroller] director of business, economic development, and tourism
shall reimburse the members of the King Kamehameha celebration commission for
all necessary expenses incurred during the discharge of their duties.
(d) The commission may appoint and dismiss an
arts program specialist and a part-time clerk typist, without regard to chapter
76, who shall serve at the commission's pleasure, and whose salaries shall be
provided through fees, public contributions, and private donations. The commission, by majority vote, shall
appoint an executive director who shall be familiar with the people and culture
of Hawaiʻi, and
shall serve without regard to chapter 76 for a term to be determined by the
commission. Except for matters
undertaken by the [comptroller] director of business, economic
development, and tourism pursuant to subsection (f), the executive director
shall be responsible for all fiscal and administrative matters, including
securing public contributions and private foundation grants or donations. The executive director shall also be
responsible for developing and administering programs as the commission may
direct. The executive director may be
removed for cause at any time by a two-thirds vote of all commission
members."
3. By amending subsection (f) to read:
"(f) The [comptroller] director of
business, economic development, and tourism shall account for all moneys
appropriated by the legislature, may raise funds to defray administrative
costs, and may accept donations of money and personal property on behalf of the
commission; provided that all donations accepted from private sources shall be
expended in the manner prescribed by the contributor, and all moneys received
from all sources shall be deposited into the commission's trust account."
SECTION 2. Section 9-2, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) There is hereby created a state foundation on
culture and the arts, which shall be placed within the department of [accounting
and general services] business, economic development, and tourism
for administrative purposes."
SECTION 3. Section 9-3, Hawaii Revised Statutes, is amended to read as follows:
"§9-3 Duties. The foundation shall:
(1) Assist in coordinating the plans, programs, and activities of individuals, associations, corporations, and agencies concerned with the preservation and furtherance of culture and the arts and history and the humanities;
(2) Establish written standards and criteria by which grant contracts shall be evaluated;
(3) Appraise the availability, adequacy, and accessibility of culture and the arts and history and the humanities to all persons throughout the State and devise programs whereby culture and the arts and history and the humanities can be brought to those who would otherwise not have the opportunity to participate;
(4) Stimulate, guide, and promote culture and the arts and history and the humanities throughout the State;
(5) Devise and recommend legislative and administrative action for the preservation and furtherance of culture and the arts and history and the humanities;
(6) Study the availability of private and governmental grants for the promotion and furtherance of culture and the arts and history and the humanities;
(7) Through its executive director:
(A) Administer funds allocated by grant, gift, or bequest to the foundation; accept, hold, disburse, and allocate funds that may become available from other governmental and private sources; provided that all those funds shall be disbursed or allocated in compliance with any specific designation stated by the donor and in the absence of any designation, the funds shall be disbursed or allocated for the promotion and furtherance of culture and the arts and history and the humanities; and
(B) Accept, hold, disburse, and allocate public funds that are made available to the foundation by the legislature for disbursement or allocation, pursuant to the standards and procedures established in part II, for the promotion and furtherance of culture and the arts and history and the humanities;
(8) Submit an annual report with recommendations to the governor and legislature, prior to February 1, of each year. Annual reports shall include the total number and amount of gifts and other grants and income received, payroll disbursements, contracts entered into, and progress and accomplishments made during the year, including the efforts of the Hawaii arts education partners and its progress in implementing the Hawaii arts education strategic plan and the accomplishments of the art in public places and relocatable works of art programs and the state art museum;
(9) Convene the Hawaii arts education partners, which is composed of the department of education, the colleges of education and arts and humanities of the University of Hawaii at Manoa, the Hawaii Association of Independent Schools, and the Hawaii Alliance for Art Education, to fully implement the terms of the Hawaii arts education strategic plan;
(10) Display student art works in public buildings, sponsor student art displays, promote arts education, and in other ways encourage the development of creative talent among the young people of Hawaii;
(11) In cooperation with qualified organizations,
conduct research, studies, and investigations in the fields of ethnohistory and
the humanities[:] by:
(A) [Make, publish, and distribute] Making,
publishing, and distributing works documenting the contributions of
individual ethnic groups in their relationship to one another and to the whole
population of Hawaii;
(B) [Place] Placing ethnohistorical
and cultural materials developed by the foundation or received by the
foundation as gifts and donations in public archives, libraries, and other
suitable institutions accessible to the public; and
(C) [Maintain] Maintaining a
register of the location of such materials;
(12) Cooperate with and assist the department of land and natural resources and other state agencies in developing and implementing programs relating to historic preservation, research, restoration, and presentation, as well as museum activities;
(13) Establish an individual artist fellowship program to encourage artists to remain and work in Hawaii and to reaffirm the importance of Hawaii's artists and their cultural and economic contributions to the State by:
(A) Recognizing and honoring Hawaii's exceptionally talented visual and performing artists for their outstanding work in and commitment to the arts; and
(B) Enabling these artists to further their artistic goals;
(14) In consultation with the [comptroller] director of business, economic
development, and tourism and affected agencies and departments, administer
the art in public places and relocatable works of art programs established
pursuant to section 103-8.5; and
(15) Administer the operations of the state art museum established pursuant to section 9-22."
SECTION 4. Section 9-5, Hawaii Revised Statutes, is amended to read as follows:
"[[]§9-5[]] Rules. The foundation shall
adopt rules in consultation with the [comptroller] director
of business, economic development, and tourism for the purposes of administering this
chapter. [Such] The rules
shall be adopted in accordance with chapter 91."
SECTION 5. 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) Have the discretion to employ persons within the comptroller's office who shall be exempt from chapters 76 and 89 in support of communications, change management, and business process improvement programs as part of the State's information technology modernization efforts; provided that the persons shall be members of the state employees' retirement system and shall be eligible to receive the benefits of any state employee benefit program generally applicable to officers and employees of the State;
(10) Provide centralized computer information management and processing services through the chief information officer;
(11) Establish a program to provide a means for public access to public information and develop an information network for state government;
(12) Assume administrative responsibility for the office of information practices; and
(13) 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" has the same meaning as defined in title 10 Code of Federal Regulations part 490.
"Multipurpose passenger vehicle" has the same meaning as defined in title 49 Code of Federal Regulations section 571.3.
"Passenger car" has the same meaning as defined in title 49 Code of Federal Regulations section 571.3.
"Truck" has the same meaning as defined in title 49 Code of Federal Regulations section 571.3.
"Zero-emission vehicle" has the same meaning as specified in title 40 Code of Federal Regulations section 88.1.
(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)] (f) 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] shall be transferred to the department of
accounting and general services established by this chapter.
[(h)]
(g) 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).] (h).
[(i)]
(h) 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),] (g), 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."
SECTION 6. Section 103-8.5, Hawaii Revised Statutes, is amended as follows:
1. By amending subsections (c) to (e) to read:
"(c) The one per cent amount, which is included in
all general obligation bond fund capital improvement appropriations, shall be
calculated at the time that each appropriation becomes available. The [comptroller] director of
business, economic development, and tourism shall cause one per cent of
each general obligation bond fund capital improvement appropriation designated
for the construction or renovation of state buildings to be transferred into a
general obligation bond fund appropriation the legislature may make
specifically for deposits to the works of art special fund after availability
of moneys from the appropriations. Each
agency receiving capital improvement appropriations shall calculate the one per
cent amount and transfer the appropriation into a general obligation bond fund
appropriation the legislature may make specifically for deposits to the works
of art special fund.
(d) The [comptroller] director
of business, economic development, and tourism
and the state foundation on culture and the arts shall decide on the specific
art objects to acquire, giving first consideration to placing appropriate
pieces of art at the locations of the original appropriation.
[The]
Notwithstanding any law to the contrary, selection of, commissioning
artists for, reviewing of design, execution, and placement of, and the
acceptance of works of art shall be the responsibility of the [comptroller] director of business,
economic development, and tourism and the state
foundation on culture and the arts in consultation with the affected agency or
department.
Expenditures
from the works of art special fund shall be made by the [comptroller.] director
of business, economic development, and tourism.
(e) The [comptroller] director
of business, economic development, and tourism
shall:
(1) Provide each agency receiving capital improvement appropriations with information regarding items that shall be included and excluded from the one per cent amount;
(2) Ensure that each agency calculates its one per cent amount correctly;
(3) Ensure that each agency transfers the correct amount of each appropriation to a separate appropriation made for deposits to the works of art special fund; and
(4) Transfer to the works of art special fund the annual transfer amount, as defined in subsection (i), from an appropriation the legislature may make for deposits to the works of art special fund."
2. By amending subsection (h) to read:
"(h) The [comptroller] director
of business, economic development, and tourism
and the executive director of the state foundation on culture and the
arts shall track amounts transferred to the works of art special fund, the
use of all transferred amounts, and the timing of the use of all transferred
amounts by appropriation and date of transfer."
SECTION 7. 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 accounting and general services relating to the functions transferred to the department of business, economic development, and tourism shall be transferred with the functions to which they relate.
SECTION 8. All rights, powers, functions, and duties of the department of accounting and general services relating to the functions transferred to the department of business, economic development, and tourism shall be transferred with the functions to which they relate.
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; 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 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 9. All rules, policies, procedures, guidelines, and other material adopted or developed by the department of accounting and general services to implement provisions of the Hawaii Revised Statutes that are reenacted or made applicable to the department of business, economic development, and tourism by this Act shall remain in full force and effect until amended or repealed by the department of business, economic development, and tourism pursuant to chapter 91, Hawaii Revised Statutes.
In the interim, every reference to the department of accounting and general services or comptroller in those rules, policies, procedures, guidelines, and other material is amended to refer to the department of business, economic development, and tourism or director of business, economic development, and tourism, as appropriate.
SECTION 10. All deeds, leases, contracts, loans, agreements, permits, or other documents executed or entered into by or on behalf of the department of accounting and general services, pursuant to the provisions of the Hawaii Revised Statutes that are reenacted or made applicable to the department of business, economic development, and tourism by this Act shall remain in full force and effect. Upon the effective date of this Act, every reference to the department of accounting and general services or the comptroller therein shall be construed as a reference to the department of business, economic development, and tourism or the director of business, economic development, and tourism, as appropriate.
SECTION 11. 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 accounting and general services relating to the functions transferred to the department of business, economic development, and tourism shall be transferred with the functions to which they relate.
SECTION 12. There is appropriated out of the general revenues of the State of Hawaii the sum of $70,000 or so much thereof as may be necessary for fiscal year 2026-2027 for the establishment of one full-time equivalent (1.0 FTE) temporary administrator position within the administrative services office of the department of business, economic development, and tourism to assist with the transfer.
The sum appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.
SECTION 13. There is appropriated out of the general revenues of the State of Hawaii the sum of $175,000 or so much thereof as may be necessary for fiscal year 2026-2027 for the establishment of one full-time equivalent (1.0 FTE) legislative coordinator position within the department of business, economic development, and tourism to support the state foundation on culture and the arts and creative industries in the transition and a sustained arts future.
The sum appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.
SECTION 14. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 15. This Act shall take effect on July 1, 3000.
Report Title:
SFCA; King Kamehameha Celebration Commission; DAGS; DBEDT; Comptroller; Works of Art Special Fund; Transfer; Positions; Appropriation
Description:
Transfers the State Foundation on Culture and the Arts and the King Kamehameha Celebration Commission from the Department of Accounting and General Services to the Department of Business, Economic Development, and Tourism. Transfers certain authority and responsibilities held by the Comptroller regarding the Works of Art Special Fund to the Director of Business, Economic Development, and Tourism. Appropriates funds for positions within the Department of Business, Economic Development, and Tourism. Effective 7/1/3000. (HD2)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
|
HOUSE OF REPRESENTATIVES |
H.B. NO. |
2118 |
|
THIRTY-THIRD LEGISLATURE, 2026 |
H.D. 1 |
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
RELATING TO THE DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 8-5, Hawaii Revised Statutes, is amended as follows:
1. By amending subsection (a) to read:
"(a) There shall be a commission to be known as
the King Kamehameha celebration commission placed within the department of [accounting
and general services] business, economic development, and tourism
for administrative purposes. The
commission shall consist of fifteen members to be appointed by the governor in
the manner provided by section 26-34.
The appointments shall be made from the following organizations, with
one member from each organization:
(1) Royal Order of Kamehameha I;
(2) ʻAhahui Kaʻahumanu;
(3) Hale O Nā Aliʻi O Hawaiʻi ʻAhahui Poʻo;
(4) Daughters and Sons of Hawaiian Warriors Māmakakaua;
(5) Kamehameha Schools Alumni Association;
(6) Association of Hawaiian Civic Clubs;
(7) Waimānalo Hawaiian Homes Association;
(8) Daughters of Hawaii;
(9) Kapahulu Music Club; and
(10) Papakōlea Community Association.
Each organization shall maintain a certificate of good standing issued by the department of commerce and consumer affairs and an active membership list. Each organization may recommend for appointment to the commission persons capable of providing administrative guidance to the commission with regard to knowledge of Hawaiian culture, history and protocols, legal issues, business, accounting, marketing, philanthropy, or public relations.
In addition, the governor shall appoint one member to the commission from each of the following islands: Kauaʻi, Lānaʻi, Maui, Molokaʻi, and Hawaiʻi. Each of these members shall be a resident of the respective island that the member represents. The governor shall appoint persons capable of providing administrative guidance with regard to legal issues, business, accounting, marketing, philanthropy, or public relations."
2. By amending subsections (c) and (d) to read:
"(c) The members of the King Kamehameha
celebration commission shall serve without compensation, but shall be entitled
to reimbursement for travel and necessary expenses while attending meetings and
while in discharge of their duties. The
[comptroller] director of business, economic development, and tourism
shall reimburse the members of the King Kamehameha celebration commission for
all necessary expenses incurred during the discharge of their duties.
(d) The commission may appoint and dismiss an
arts program specialist and a part-time clerk typist, without regard to chapter
76, who shall serve at the commission's pleasure, and whose salaries shall be
provided through fees, public contributions, and private donations. The commission, by majority vote, shall
appoint an executive director who shall be familiar with the people and culture
of Hawaiʻi, and
shall serve without regard to chapter 76 for a term to be determined by the
commission. Except for matters
undertaken by the [comptroller] director of business, economic
development, and tourism pursuant to subsection (f), the executive director
shall be responsible for all fiscal and administrative matters, including
securing public contributions and private foundation grants or donations. The executive director shall also be
responsible for developing and administering programs as the commission may
direct. The executive director may be
removed for cause at any time by a two-thirds vote of all commission
members."
3. By amending subsection (f) to read:
"(f) The [comptroller] director of
business, economic development, and tourism shall account for all moneys
appropriated by the legislature, may raise funds to defray administrative
costs, and may accept donations of money and personal property on behalf of the
commission; provided that all donations accepted from private sources shall be
expended in the manner prescribed by the contributor, and all moneys received
from all sources shall be deposited into the commission's trust account."
SECTION 2. Section 9-2, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) There is hereby created a state foundation on
culture and the arts, which shall be placed within the department of [accounting
and general services] business, economic development, and tourism
for administrative purposes."
SECTION 3. Section 9-3, Hawaii Revised Statutes, is amended to read as follows:
"§9-3 Duties. The foundation shall:
(1) Assist in coordinating the plans, programs, and activities of individuals, associations, corporations, and agencies concerned with the preservation and furtherance of culture and the arts and history and the humanities;
(2) Establish written standards and criteria by which grant contracts shall be evaluated;
(3) Appraise the availability, adequacy, and accessibility of culture and the arts and history and the humanities to all persons throughout the State and devise programs whereby culture and the arts and history and the humanities can be brought to those who would otherwise not have the opportunity to participate;
(4) Stimulate, guide, and promote culture and the arts and history and the humanities throughout the State;
(5) Devise and recommend legislative and administrative action for the preservation and furtherance of culture and the arts and history and the humanities;
(6) Study the availability of private and governmental grants for the promotion and furtherance of culture and the arts and history and the humanities;
(7) Through its executive director:
(A) Administer funds allocated by grant, gift, or bequest to the foundation; accept, hold, disburse, and allocate funds that may become available from other governmental and private sources; provided that all those funds shall be disbursed or allocated in compliance with any specific designation stated by the donor and in the absence of any designation, the funds shall be disbursed or allocated for the promotion and furtherance of culture and the arts and history and the humanities; and
(B) Accept, hold, disburse, and allocate public funds that are made available to the foundation by the legislature for disbursement or allocation, pursuant to the standards and procedures established in part II, for the promotion and furtherance of culture and the arts and history and the humanities;
(8) Submit an annual report with recommendations to the governor and legislature, prior to February 1, of each year. Annual reports shall include the total number and amount of gifts and other grants and income received, payroll disbursements, contracts entered into, and progress and accomplishments made during the year, including the efforts of the Hawaii arts education partners and its progress in implementing the Hawaii arts education strategic plan and the accomplishments of the art in public places and relocatable works of art programs and the state art museum;
(9) Convene the Hawaii arts education partners, which is composed of the department of education, the colleges of education and arts and humanities of the University of Hawaii at Manoa, the Hawaii Association of Independent Schools, and the Hawaii Alliance for Art Education, to fully implement the terms of the Hawaii arts education strategic plan;
(10) Display student art works in public buildings, sponsor student art displays, promote arts education, and in other ways encourage the development of creative talent among the young people of Hawaii;
(11) In cooperation with qualified organizations,
conduct research, studies, and investigations in the fields of ethnohistory and
the humanities[:] by:
(A) [Make, publish, and distribute] Making,
publishing, and distributing works documenting the contributions of
individual ethnic groups in their relationship to one another and to the whole
population of Hawaii;
(B) [Place] Placing ethnohistorical
and cultural materials developed by the foundation or received by the
foundation as gifts and donations in public archives, libraries, and other
suitable institutions accessible to the public; and
(C) [Maintain] Maintaining a
register of the location of such materials;
(12) Cooperate with and assist the department of land and natural resources and other state agencies in developing and implementing programs relating to historic preservation, research, restoration, and presentation, as well as museum activities;
(13) Establish an individual artist fellowship program to encourage artists to remain and work in Hawaii and to reaffirm the importance of Hawaii's artists and their cultural and economic contributions to the State by:
(A) Recognizing and honoring Hawaii's exceptionally talented visual and performing artists for their outstanding work in and commitment to the arts; and
(B) Enabling these artists to further their artistic goals;
(14) In consultation with the [comptroller] director of business, economic
development, and tourism and affected agencies and departments, administer
the art in public places and relocatable works of art programs established
pursuant to section 103-8.5; and
(15) Administer the operations of the state art museum established pursuant to section 9-22."
SECTION 4. Section 9-5, Hawaii Revised Statutes, is amended to read as follows:
"[[]§9-5[]] Rules. The foundation shall
adopt rules in consultation with the [comptroller] director
of business, economic development, and tourism for the purposes of administering this
chapter. [Such] The rules
shall be adopted in accordance with chapter 91."
SECTION 5. 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) Have the discretion to employ persons within the comptroller's office who shall be exempt from chapters 76 and 89 in support of communications, change management, and business process improvement programs as part of the State's information technology modernization efforts; provided that the persons shall be members of the state employees' retirement system and shall be eligible to receive the benefits of any state employee benefit program generally applicable to officers and employees of the State;
(10) Provide centralized computer information management and processing services through the chief information officer;
(11) Establish a program to provide a means for public access to public information and develop an information network for state government;
(12) Assume administrative responsibility for the office of information practices; and
(13) 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" has the same meaning as defined in title 10 Code of Federal Regulations part 490.
"Multipurpose passenger vehicle" has the same meaning as defined in title 49 Code of Federal Regulations section 571.3.
"Passenger car" has the same meaning as defined in title 49 Code of Federal Regulations section 571.3.
"Truck" has the same meaning as defined in title 49 Code of Federal Regulations section 571.3.
"Zero-emission vehicle" has the same meaning as specified in title 40 Code of Federal Regulations section 88.1.
(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)] (f) 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] shall be transferred to the department of
accounting and general services established by this chapter.
[(h)]
(g) 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).] (h).
[(i)]
(h) 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),] (g), 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."
SECTION 6. Section 103-8.5, Hawaii Revised Statutes, is amended as follows:
1. By amending subsections (c) to (e) to read:
"(c) The one per cent amount, which is included in
all general obligation bond fund capital improvement appropriations, shall be
calculated at the time that each appropriation becomes available. The [comptroller] director of
business, economic development, and tourism shall cause one per cent of
each general obligation bond fund capital improvement appropriation designated
for the construction or renovation of state buildings to be transferred into a
general obligation bond fund appropriation the legislature may make
specifically for deposits to the works of art special fund after availability
of moneys from the appropriations. Each
agency receiving capital improvement appropriations shall calculate the one per
cent amount and transfer the appropriation into a general obligation bond fund
appropriation the legislature may make specifically for deposits to the works
of art special fund.
(d) The [comptroller] director
of business, economic development, and tourism
and the state foundation on culture and the arts shall decide on the specific
art objects to acquire, giving first consideration to placing appropriate
pieces of art at the locations of the original appropriation.
[The]
Notwithstanding any law to the contrary, selection of, commissioning
artists for, reviewing of design, execution, and placement of, and the
acceptance of works of art shall be the responsibility of the [comptroller] director of business,
economic development, and tourism and the state
foundation on culture and the arts in consultation with the affected agency or
department.
Expenditures
from the works of art special fund shall be made by the [comptroller.] director
of business, economic development, and tourism.
(e) The [comptroller] director
of business, economic development, and tourism
shall:
(1) Provide each agency receiving capital improvement appropriations with information regarding items that shall be included and excluded from the one per cent amount;
(2) Ensure that each agency calculates its one per cent amount correctly;
(3) Ensure that each agency transfers the correct amount of each appropriation to a separate appropriation made for deposits to the works of art special fund; and
(4) Transfer to the works of art special fund the annual transfer amount, as defined in subsection (i), from an appropriation the legislature may make for deposits to the works of art special fund."
2. By amending subsection (h) to read:
"(h) The [comptroller] director
of business, economic development, and tourism
and the executive director of the state foundation on culture and the
arts shall track amounts transferred to the works of art special fund, the
use of all transferred amounts, and the timing of the use of all transferred
amounts by appropriation and date of transfer."
SECTION 7. 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 accounting and general services relating to the functions transferred to the department of business, economic development, and tourism shall be transferred with the functions to which they relate.
SECTION 8. All rights, powers, functions, and duties of the department of accounting and general services relating to the functions transferred to the department of business, economic development, and tourism shall be transferred with the functions to which they relate.
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; 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 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 9. All rules, policies, procedures, guidelines, and other material adopted or developed by the department of accounting and general services to implement provisions of the Hawaii Revised Statutes that are reenacted or made applicable to the department of business, economic development, and tourism by this Act shall remain in full force and effect until amended or repealed by the department of business, economic development, and tourism pursuant to chapter 91, Hawaii Revised Statutes.
In the interim, every reference to the department of accounting and general services or comptroller in those rules, policies, procedures, guidelines, and other material is amended to refer to the department of business, economic development, and tourism or director of business, economic development, and tourism, as appropriate.
SECTION 10. All deeds, leases, contracts, loans, agreements, permits, or other documents executed or entered into by or on behalf of the department of accounting and general services, pursuant to the provisions of the Hawaii Revised Statutes that are reenacted or made applicable to the department of business, economic development, and tourism by this Act shall remain in full force and effect. Upon the effective date of this Act, every reference to the department of accounting and general services or the comptroller therein shall be construed as a reference to the department of business, economic development, and tourism or the director of business, economic development, and tourism, as appropriate.
SECTION 11. 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 accounting and general services relating to the functions transferred to the department of business, economic development, and tourism shall be transferred with the functions to which they relate.
SECTION 12. There is appropriated out of the general revenues of the State of Hawaii the sum of $70,000 or so much thereof as may be necessary for fiscal year 2026-2027 for the establishment of one full-time equivalent (1.0 FTE) temporary administrator position within the administrative services office of the department of business, economic development, and tourism to assist with the transfer.
The sum appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.
SECTION 13. There is appropriated out of the general revenues of the State of Hawaii the sum of $175,000 or so much thereof as may be necessary for fiscal year 2026-2027 for the establishment of one full-time equivalent (1.0 FTE) legislative coordinator position within the department of business, economic development, and tourism to support the state foundation on culture and the arts and creative industries in the transition and a sustained arts future.
The sum appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.
SECTION 14. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 15. This Act shall take effect on July 1, 3000.
Report Title:
SFCA; King Kamehameha Celebration Commission; DAGS; DBEDT; Comptroller; Works of Art Special Fund; Transfer; Positions; Appropriation
Description:
Transfers the State Foundation on Culture and the Arts and the King Kamehameha Celebration Commission from the Department of Accounting and General Services to the Department of Business, Economic Development, and Tourism. Transfers certain authority and responsibilities held by the Comptroller regarding the Works of Art Special Fund to the Director of Business, Economic Development, and Tourism. Appropriates funds for positions within the Department of Business, Economic Development, and Tourism. Effective 7/1/3000. (HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
|
HOUSE OF REPRESENTATIVES |
H.B. NO. |
2118 |
|
THIRTY-THIRD LEGISLATURE, 2026 |
|
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
RELATING TO THE DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 8-5, Hawaii Revised Statutes, is amended as follows:
1. By amending subsection (a) to read:
"(a) There shall be a commission to be known as
the King Kamehameha celebration commission placed within the department of [accounting
and general services] business, economic development, and tourism
for administrative purposes. The
commission shall consist of fifteen members to be appointed by the governor in
the manner provided by section 26-34.
The appointments shall be made from the following organizations, with
one member from each organization:
(1) Royal Order of Kamehameha I;
(2) ʻAhahui Kaʻahumanu;
(3) Hale O Nā Aliʻi O Hawaiʻi ʻAhahui Poʻo;
(4) Daughters and Sons of Hawaiian Warriors Māmakakaua;
(5) Kamehameha Schools Alumni Association;
(6) Association of Hawaiian Civic Clubs;
(7) Waimānalo Hawaiian Homes Association;
(8) Daughters of Hawaii;
(9) Kapahulu Music Club; and
(10) Papakōlea Community Association.
Each organization shall maintain a certificate of good standing issued by the department of commerce and consumer affairs and an active membership list. Each organization may recommend for appointment to the commission persons capable of providing administrative guidance to the commission with regard to knowledge of Hawaiian culture, history and protocols, legal issues, business, accounting, marketing, philanthropy, or public relations.
In addition, the governor shall appoint one member to the commission from each of the following islands: Kauaʻi, Lānaʻi, Maui, Molokaʻi, and Hawaiʻi. Each of these members shall be a resident of the respective island that the member represents. The governor shall appoint persons capable of providing administrative guidance with regard to legal issues, business, accounting, marketing, philanthropy, or public relations."
2. By amending subsections (c) and (d) to read:
"(c) The members of the King Kamehameha
celebration commission shall serve without compensation, but shall be entitled
to reimbursement for travel and necessary expenses while attending meetings and
while in discharge of their duties. The
[comptroller] director of business, economic development, and tourism
shall reimburse the members of the King Kamehameha celebration commission for
all necessary expenses incurred during the discharge of their duties.
(d) The commission may appoint and dismiss an
arts program specialist and a part-time clerk typist, without regard to chapter
76, who shall serve at the commission's pleasure, and whose salaries shall be
provided through fees, public contributions, and private donations. The commission, by majority vote, shall
appoint an executive director who shall be familiar with the people and culture
of Hawaiʻi, and
shall serve without regard to chapter 76 for a term to be determined by the
commission. Except for matters
undertaken by the [comptroller] director of business, economic
development, and tourism pursuant to subsection (f), the executive director
shall be responsible for all fiscal and administrative matters, including
securing public contributions and private foundation grants or donations. The executive director shall also be
responsible for developing and administering programs as the commission may
direct. The executive director may be
removed for cause at any time by a two-thirds vote of all commission
members."
3. By amending subsection (f) to read:
"(f) The [comptroller] director of
business, economic development, and tourism shall account for all moneys
appropriated by the legislature, may raise funds to defray administrative
costs, and may accept donations of money and personal property on behalf of the
commission; provided that all donations accepted from private sources shall be
expended in the manner prescribed by the contributor, and all moneys received
from all sources shall be deposited into the commission's trust account."
SECTION 2. Section 9-2, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) There is hereby created a state foundation on
culture and the arts, which shall be placed within the department of [accounting
and general services] business, economic development, and tourism
for administrative purposes."
SECTION 3. Section 9-3, Hawaii Revised Statutes, is amended to read as follows:
"§9-3 Duties. The foundation shall:
(1) Assist in coordinating the plans, programs, and activities of individuals, associations, corporations, and agencies concerned with the preservation and furtherance of culture and the arts and history and the humanities;
(2) Establish written standards and criteria by which grant contracts shall be evaluated;
(3) Appraise the availability, adequacy, and accessibility of culture and the arts and history and the humanities to all persons throughout the State and devise programs whereby culture and the arts and history and the humanities can be brought to those who would otherwise not have the opportunity to participate;
(4) Stimulate, guide, and promote culture and the arts and history and the humanities throughout the State;
(5) Devise and recommend legislative and administrative action for the preservation and furtherance of culture and the arts and history and the humanities;
(6) Study the availability of private and governmental grants for the promotion and furtherance of culture and the arts and history and the humanities;
(7) Through its executive director:
(A) Administer funds allocated by grant, gift, or bequest to the foundation; accept, hold, disburse, and allocate funds that may become available from other governmental and private sources; provided that all those funds shall be disbursed or allocated in compliance with any specific designation stated by the donor and in the absence of any designation, the funds shall be disbursed or allocated for the promotion and furtherance of culture and the arts and history and the humanities; and
(B) Accept, hold, disburse, and allocate public funds that are made available to the foundation by the legislature for disbursement or allocation, pursuant to the standards and procedures established in part II, for the promotion and furtherance of culture and the arts and history and the humanities;
(8) Submit an annual report with recommendations to the governor and legislature, prior to February 1, of each year. Annual reports shall include the total number and amount of gifts and other grants and income received, payroll disbursements, contracts entered into, and progress and accomplishments made during the year, including the efforts of the Hawaii arts education partners and its progress in implementing the Hawaii arts education strategic plan and the accomplishments of the art in public places and relocatable works of art programs and the state art museum;
(9) Convene the Hawaii arts education partners, which is composed of the department of education, the colleges of education and arts and humanities of the University of Hawaii at Manoa, the Hawaii Association of Independent Schools, and the Hawaii Alliance for Art Education, to fully implement the terms of the Hawaii arts education strategic plan;
(10) Display student art works in public buildings, sponsor student art displays, promote arts education, and in other ways encourage the development of creative talent among the young people of Hawaii;
(11) In cooperation with qualified organizations, conduct research, studies, and investigations in the fields of ethnohistory and the humanities:
(A) Make, publish, and distribute works documenting the contributions of individual ethnic groups in their relationship to one another and to the whole population of Hawaii;
(B) Place ethnohistorical and cultural materials developed by the foundation or received by the foundation as gifts and donations in public archives, libraries, and other suitable institutions accessible to the public; and
(C) Maintain a register of the location of such materials;
(12) Cooperate with and assist the department of land and natural resources and other state agencies in developing and implementing programs relating to historic preservation, research, restoration, and presentation, as well as museum activities;
(13) Establish an individual artist fellowship program to encourage artists to remain and work in Hawaii and to reaffirm the importance of Hawaii's artists and their cultural and economic contributions to the State by:
(A) Recognizing and honoring Hawaii's exceptionally talented visual and performing artists for their outstanding work in and commitment to the arts; and
(B) Enabling these artists to further their artistic goals;
(14) In consultation with the [comptroller] director of business, economic
development, and tourism and affected agencies and departments, administer
the art in public places and relocatable works of art programs established
pursuant to section 103-8.5; and
(15) Administer the operations of the state art museum established pursuant to section 9-22."
SECTION 4. Section 9-5, Hawaii Revised Statutes, is amended to read as follows:
"[[]§9-5[]] Rules. The foundation shall
adopt rules in consultation with the [comptroller] director
of business, economic development, and tourism for the purposes of administering this
chapter. [Such] The rules
shall be adopted in accordance with chapter 91."
SECTION 5. 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) Have the discretion to employ persons within the comptroller's office who shall be exempt from chapters 76 and 89 in support of communications, change management, and business process improvement programs as part of the State's information technology modernization efforts; provided that the persons shall be members of the state employees' retirement system and shall be eligible to receive the benefits of any state employee benefit program generally applicable to officers and employees of the State;
(10) Provide centralized computer information management and processing services through the chief information officer;
(11) Establish a program to provide a means for public access to public information and develop an information network for state government;
(12) Assume administrative responsibility for the office of information practices; and
(13) 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" has the same meaning as defined in title 10 Code of Federal Regulations part 490.
"Multipurpose passenger vehicle" has the same meaning as defined in title 49 Code of Federal Regulations section 571.3.
"Passenger car" has the same meaning as defined in title 49 Code of Federal Regulations section 571.3.
"Truck" has the same meaning as defined in title 49 Code of Federal Regulations section 571.3.
"Zero-emission vehicle" has the same meaning as specified in title 40 Code of Federal Regulations section 88.1.
(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)] (f) 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)]
(g) 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).] (h).
[(i)]
(h) 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),] (g), 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."
SECTION 6. Section 103-8.5, Hawaii Revised Statutes, is amended as follows:
1. By amending subsections (d) and (e) to read:
"(d) The [comptroller] director
of business, economic development, and tourism
and the state foundation on culture and the arts shall decide on the specific
art objects to acquire, giving first consideration to placing appropriate
pieces of art at the locations of the original appropriation.
[The]
Notwithstanding any law to the contrary, selection of, commissioning
artists for, reviewing of design, execution, and placement of, and the
acceptance of works of art shall be the responsibility of the [comptroller] director of business,
economic development, and tourism and the state
foundation on culture and the arts in consultation with the affected agency or
department.
Expenditures
from the works of art special fund shall be made by the [comptroller.] director
of business, economic development, and tourism.
(e) The [comptroller] director
of business, economic development, and tourism
shall:
(1) Provide each agency receiving capital improvement appropriations with information regarding items that shall be included and excluded from the one per cent amount;
(2) Ensure that each agency calculates its one per cent amount correctly;
(3) Ensure that each agency transfers the correct amount of each appropriation to a separate appropriation made for deposits to the works of art special fund; and
(4) Transfer to the works of art special fund the annual transfer amount, as defined in subsection (i), from an appropriation the legislature may make for deposits to the works of art special fund."
2. By amending subsection (h) to read:
"(h) The [comptroller] director
of business, economic development, and tourism
and the executive director of the state foundation on culture and the
arts shall track amounts transferred to the works of art special fund, the
use of all transferred amounts, and the timing of the use of all transferred
amounts by appropriation and date of transfer."
SECTION 7. 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 accounting and general services relating to the functions transferred to the department of business, economic development, and tourism shall be transferred with the functions to which they relate.
SECTION 8. All rights, powers, functions, and duties of the department of accounting and general services relating to the functions transferred to the department of business, economic development, and tourism shall be transferred with the functions to which they relate.
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; 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 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 9. All rules, policies, procedures, guidelines, and other material adopted or developed by the department of accounting and general services to implement provisions of the Hawaii Revised Statutes that are reenacted or made applicable to the department of business, economic development, and tourism by this Act shall remain in full force and effect until amended or repealed by the department of business, economic development, and tourism pursuant to chapter 91, Hawaii Revised Statutes.
In the interim, every reference to the department of accounting or general services or comptroller in those rules, policies, procedures, guidelines, and other material is amended to refer to the department of business, economic development, and tourism or director of business, economic development, and tourism, as appropriate.
SECTION 10. All deeds, leases, contracts, loans, agreements, permits, or other documents executed or entered into by or on behalf of the department of accounting and general services, pursuant to the provisions of the Hawaii Revised Statutes that are reenacted or made applicable to the department of business, economic development, and tourism by this Act shall remain in full force and effect. Upon the effective date of this Act, every reference to the department of accounting and general services or the comptroller therein shall be construed as a reference to the department of business, economic development, and tourism or the director of business, economic development, and tourism, as appropriate.
SECTION 11. There is appropriated out of the general revenues of the State of Hawaii the sum of $70,000 or so much thereof as may be necessary for fiscal year 2026-2027 for the establishment of one full-time equivalent (1.0 FTE) temporary administrator position within the administrative services office of the department of business, economic development, and tourism to assist with the transfer.
The sum appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.
SECTION 12. There is appropriated out of the general revenues of the State of Hawaii the sum of $175,000 or so much thereof as may be necessary for fiscal year 2026-2027 for the establishment of one full-time equivalent (1.0 FTE) legislative coordinator position within the department of business, economic development, and tourism to support the state foundation on culture and the arts and creative industries in the transition and a sustained arts future.
The sum appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.
SECTION 13. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 14. This Act shall take effect on July 1, 2026.
|
INTRODUCED BY: |
_____________________________ |
|
|
|
Report Title:
SFCA; King Kamehameha Celebration Commission; DAGS; DBEDT; Comptroller; Works of Art Special Fund; Transfer; Positions; Appropriation
Description:
Transfers the State Foundation on Culture and the Arts and the King Kamehameha Celebration Commission from the Department of Accounting and General Services to the Department of Business, Economic Development, and Tourism. Transfers certain authority and responsibilities held by the Comptroller regarding the Works of Art Special Fund to the Director of Business, Economic Development, and Tourism. Appropriates funds for positions within the Department of Business, Economic Development, and Tourism.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
|
Date
|
Status
|
|---|---|
| Mar 30, 2026 | Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. |
| Mar 30, 2026 | Reported from WLA/EDT (Stand. Com. Rep. No. 3366) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM. |
| Mar 23, 2026 | The committee(s) on WLA recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in WLA were as follows: 3 Aye(s): Senator(s) Lee, C., Inouye, Chang; Aye(s) with reservations: none ; 0 No(es): none; and 2 Excused: Senator(s) Lamosao, DeCorte. |
| Mar 23, 2026 | The committee(s) on EDT recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in EDT were as follows: 3 Aye(s): Senator(s) DeCoite, Wakai, Fukunaga; Aye(s) with reservations: none ; 0 No(es): none; and 2 Excused: Senator(s) Kim, Fevella. |
| Mar 20, 2026 | The committee(s) on WLA/EDT has scheduled a public hearing on 03-23-26 1:15PM; Conference Room 224 & Videoconference. |
| Mar 12, 2026 | Referred to WLA/EDT, WAM. |
| Mar 12, 2026 | Passed First Reading. |
| Mar 12, 2026 | Received from House (Hse. Com. No. 362). |
| Mar 10, 2026 | Passed Third Reading as amended in HD 2 with none voting aye with reservations; Representative(s) Pierick voting no (1) and none excused (0). Transmitted to Senate. |
| Mar 6, 2026 | Forty-eight (48) hours notice Tuesday, 03-10-26. |
| Mar 6, 2026 | Reported from FIN (Stand. Com. Rep. No. 1025-26) as amended in HD 2, recommending passage on Third Reading. |
| Feb 26, 2026 | The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 16 Ayes: Representative(s) Todd, Takenouchi, Hartsfield, Hussey, Keohokapu-Lee Loy, Kitagawa, Kusch, Lee, M., Miyake, Morikawa, Perruso, Templo, Yamashita, Alcos, Gedeon, Reyes Oda; Ayes with reservations: none; 0 Noes: none; and 0 Excused: none. |
| Feb 24, 2026 | Bill scheduled to be heard by FIN on Thursday, 02-26-26 10:00AM in House conference room 308 VIA VIDEOCONFERENCE. |
| Feb 18, 2026 | Report adopted; referred to the committee(s) on FIN with none voting aye with reservations; Representative(s) Pierick voting no (1) and none excused (0). |
| Feb 18, 2026 | Reported from ECD/LAB (Stand. Com. Rep. No. 411-26), recommending referral to FIN. |
| Feb 11, 2026 | The committee on LAB recommend that the measure be PASSED, UNAMENDED. The votes were as follows: 5 Ayes: Representative(s) Sayama, Lee, M., Garrett, Kapela, Kong; Ayes with reservations: none; Noes: none; and 1 Excused: Representative(s) Reyes Oda. |
| Feb 11, 2026 | The committee on ECD recommend that the measure be PASSED, UNAMENDED. The votes were as follows: 6 Ayes: Representative(s) Ilagan, Hussey, Tam, Templo, Yamashita, Gedeon; Ayes with reservations: none; Noes: none; and 1 Excused: Representative(s) Holt. |
| Feb 6, 2026 | Bill scheduled to be heard by ECD/LAB on Wednesday, 02-11-26 9:30AM in House conference room 423 VIA VIDEOCONFERENCE. |
| Feb 6, 2026 | Passed Second Reading as amended in HD 1 and referred to the committee(s) on ECD/LAB with none voting aye with reservations; Representative(s) Pierick voting no (1) and none excused (0). |
| Feb 6, 2026 | Reported from CAA (Stand. Com. Rep. No. 32-26) as amended in HD 1, recommending passage on Second Reading and referral to ECD/LAB. |
| Feb 4, 2026 | The committee on CAA recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 6 Ayes: Representative(s) Kapela, Kong, Garrett, Lee, M., Sayama, Reyes Oda; Ayes with reservations: none; Noes: none; and Excused: none. |
| Jan 30, 2026 | Bill scheduled to be heard by CAA on Wednesday, 02-04-26 9:30AM in House conference room 309 VIA VIDEOCONFERENCE. |
| Jan 28, 2026 | Referred to CAA, ECD/LAB, FIN, referral sheet 4 |
| Jan 26, 2026 | Introduced and Pass First Reading. |
| Jan 23, 2026 | Pending introduction. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Mar 23, 2026 | The committee(s) on WLA recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Water, Land, Culture and the Arts |
Passed |
|
| Mar 23, 2026 | The committee(s) on EDT recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Economic Development and Tourism |
Passed |
|
| Mar 10, 2026 | Third Reading | House Floor |
Passed |
|
| Feb 26, 2026 | The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS | House Standing Committee on Finance |
Passed |
|
| Feb 11, 2026 | The committee on LAB recommend that the measure be PASSED, UNAMENDED | House Standing Committee on Labor |
Passed |
|
| Feb 11, 2026 | The committee on ECD recommend that the measure be PASSED, UNAMENDED | House Standing Committee on Economic Development & Technology |
Passed |
|
| Feb 4, 2026 | The committee on CAA recommend that the measure be PASSED, WITH AMENDMENTS | House Standing Committee on Culture & Arts |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Association of Hawaiian Civic Clubs | ** Support | |
| CARES | ** Support | |
| Department of Accounting and General Services | *** Support | Mar 23, 2026 |
| Ke One o Kākuhihewa | ** Support | |
| King Kamehameha Celebration Commission | *** Support | Mar 23, 2026 |
| Oʻahu Council of the Association of Hawaiian Civic Clubs | *** Support | Feb 3, 2026 |
| State Foundation on Culture and the Arts | *** Support | Mar 23, 2026 |
STAND. COM. REP. NO. 1025-26
Honolulu, Hawaii
, 2026
RE: H.B. No. 2118
H.D. 2
Honorable Nadine K. Nakamura
Speaker, House of Representatives
Thirty-Third State Legislature
Regular Session of 2026
State of Hawaii
Madame:
Your Committee on Finance, to which was referred H.B. No. 2118, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO THE DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM,"
begs leave to report as follows:
The purpose of this measure is to:
(1) Transfer the State Foundation on Culture and the Arts and the King Kamehameha Celebration Commission from the Department of Accounting and General Services to the Department of Business, Economic Development, and Tourism;
(2) Transfer certain authority and responsibilities held by the Comptroller regarding the Works of Art Special Fund to the Director of Business, Economic Development, and Tourism; and
(3) Appropriate funds for positions within the Department of Business, Economic Development, and Tourism.
Your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.
As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2118, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2118, H.D. 2.
Respectfully submitted on behalf of the members of the Committee on Finance,
|
|
|
____________________________ CHRIS TODD, Chair |
|
|
|
|
STAND. COM. REP. NO. 411-26
Honolulu, Hawaii
, 2026
RE: H.B. No. 2118
H.D. 1
Honorable Nadine K. Nakamura
Speaker, House of Representatives
Thirty-Third State Legislature
Regular Session of 2026
State of Hawaii
Madame:
Your Committees on Economic Development & Technology and Labor, to which was referred H.B. No. 2118, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO THE DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM,"
beg leave to report as follows:
The purpose of this measure is to:
(1) Transfer the State Foundation on Culture and the Arts and the King Kamehameha Celebration Commission from the Department of Accounting and General Services to the Department of Business, Economic Development, and Tourism;
(2) Transfer certain authority and responsibilities held by the Comptroller regarding the Works of Art Special Fund to the Director of Business, Economic Development, and Tourism; and
(3) Appropriate funds for positions within the Department of Business, Economic Development, and Tourism.
Your Committees received testimony in support of this measure from the Department of Accounting and General Services; Hawaiʻi State Foundation on Culture and the Arts; Association of Hawaiian Civic Clubs; CARES; and two individuals. Your Committees received comments on this measure from the Department of Business, Economic Development, and Tourism.
Your Committees find that the State Foundation on Culture and the Arts and the King Kamehameha Celebration Commission serve vital functions in the preservation and promotion of the State's rich cultural heritage and the arts, which are integral components of the State's identity and economy. Your Committees further find that administratively placing these state entities in the Department of Business, Economic Development, and Tourism, rather than the Department of Accounting and General Services, will better serve the State's broader economic objectives as the Department of Business, Economic Development, and Tourism is better positioned to support the growth and development of Hawaii's cultural and creative industries. The transfer of administrative oversight proposed by this measure will streamline administrative processes, enhance programmatic support, and enable the State to more effectively leverage its resources to enhance the visibility and impact of Hawaii's unique cultural and artistic initiatives.
As affirmed by the records of votes of the members of your Committees on Economic Development & Technology and Labor that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2118, H.D. 1, and recommend that it be referred to your Committee on Finance.
Respectfully submitted on behalf of the members of the Committees on Economic Development & Technology and Labor,
|
____________________________ JACKSON D. SAYAMA, Chair |
|
____________________________ GREGGOR ILAGAN, Chair |
STAND. COM. REP. NO. 32-26
Honolulu, Hawaii
, 2026
RE: H.B. No. 2118
H.D. 1
Honorable Nadine K. Nakamura
Speaker, House of Representatives
Thirty-Third State Legislature
Regular Session of 2026
State of Hawaii
Madame:
Your Committee on Culture & Arts, to which was referred H.B. No. 2118 entitled:
"A BILL FOR AN ACT RELATING TO THE DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM,"
begs leave to report as follows:
The purpose of this measure is to:
(1) Transfer the State Foundation on Culture and the Arts and King Kamehameha Celebration Commission from the Department of Accounting and General Services to the Department of Business, Economic Development, and Tourism;
(2) Transfer certain authority and responsibilities held by the Comptroller regarding the Works of Art Special Fund to the Director of Business, Economic Development, and Tourism; and
(3) Appropriate funds for positions within the Department of Business, Economic Development, and Tourism.
Your Committee finds that the administrative placement of the King Kamehameha Celebration Commission and State Foundation on Culture and the Arts within the Department of Accounting and General Services has limited their ability to operate in alignment with broader cultural and economic initiatives. These state entities are deeply rooted in the preservation and promotion of Hawaiian culture and the arts, areas that closely intersect with the mission of the Department of Business, Economic Development, and Tourism. By transferring administrative oversight to that department, this measure seeks to streamline operations, enhance programmatic support, and better integrate cultural advancement with statewide economic and community development efforts.
Your Committee has amended this measure by:
(1) Changing the effective date to July 1, 3000, to encourage further discussion; and
(2) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.
Your Committee notes the concerns of the State Foundation on Culture and the Arts regarding whether an additional year may be necessary to facilitate a smooth transition and ensure any administrative changes.
As affirmed by the record of votes of the members of your Committee on Culture & Arts that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2118, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2118, H.D. 1, and be referred to your Committees on Economic Development & Technology and Labor.
Respectfully submitted on behalf of the members of the Committee on Culture & Arts,
|
|
|
____________________________ JEANNE KAPELA, Chair |
|
|
|
|
|
Date
|
Testimony PDF
|
|---|---|
| Mar 23, 2026 | HB2118_HD2_TESTIMONY_EDT-WLA_03-23-26_.PDF |
| Feb 26, 2026 | HB2118_HD1_TESTIMONY_FIN_02-26-26_.PDF |
| Feb 11, 2026 | HB2118_HD1_TESTIMONY_ECD-LAB_02-11-26_.PDF |
| Feb 3, 2026 | HB2118_TESTIMONY_CAA_02-04-26_.PDF |
Discussed in Hearing
3MIN
Senate Standing Committee on Economic Development and Tourism
3MIN
Senate Standing Committee on Water, Land, Culture and the Arts
1MIN
Senate Standing Committee on Economic Development and Tourism
1MIN
Senate Standing Committee on Water, Land, Culture and the Arts
32SEC
House Standing Committee on Finance
23SEC
House Standing Committee on Finance
41SEC
House Standing Committee on Economic Development & Technology
2MIN
House Standing Committee on Culture & Arts
Bill Author
