SB 1292: RELATING TO GOVERNMENT.

THE SENATE	S.B. NO.	1292
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII

A BILL FOR AN ACT

 

 

RELATING TO GOVERNMENT.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

PART I

     SECTION 1.  The legislature believes that Hawaii would benefit from a reorganization of the State's health delivery, public health, environmental management, and environmental protection functions.  Transferring responsibility for certain health delivery services from the department of health to the department of human services would allow the department of health to operate more efficiently and to prioritize its administrative roles.  The establishment of a department dedicated to environmental protection and environmental management is also appropriate.  Currently, these functions are divided among many different state departments.

     Accordingly, the purpose of this Act is to:

     (1)  Establish a new department of environmental protection;

     (2)  Rename the department of health as the department of community health;

     (3)  Rename the department of human services as the department of healthcare services;

     (4)  Transfer certain responsibilities from the department of community health to the department of healthcare services and the department of environmental protection;

     (5)  Transfer certain responsibilities from the department of healthcare services to the department of community health; and

     (6)  Administratively attach the Hawaii employer-union health benefits trust fund to the department of healthcare services.

PART II

     SECTION 2.  The purpose of this part is to establish the department of environmental protection.

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

"Chapter

DEPARTMENT OF ENVIRONMENTAL PROTECTION

     §   -1  Definitions.  For the purposes of this chapter, unless the context otherwise requires:

     "Department" means the department of environmental protection.

     "Director" means the director of environmental protection.

     §   -2  Administrative matters.  (a)  The director shall determine the duties of the deputy director of environmental protection.

     (b)  The department shall have a human resources office, an administrative services office, and an information technology office.

     §   -3  Environmental health service division.  The department shall have an environmental health service division, which shall include:

     (1)  A food and drug branch;

     (2)  An indoor and radiological health branch;

     (3)  A sanitation branch; and

     (4)  A vector branch.

     §   -4  Environmental management division.  The department shall have an environmental management division, which shall include:

     (1)  A clean air branch;

     (2)  A clean water branch;

     (3)  A safe drinking water branch; and

     (4)  A solid and hazardous waste branch.

     §   -5  State laboratories division.  The department shall have a state laboratories division, which shall:

     (1)  Administer a statewide program that conducts analytical testing services in support of environmental health;

     (2)  Certify laboratories involved in environment‑related matters; and

     (3)  Participate in environmental health training, research, exercises, and investigations.

     §   -6  Hazard evaluation and emergency response office.  The department shall have a hazard evaluation and emergency response office, which shall:

     (1)  Provide risk assessments and respond to the release of hazardous substances;

     (2)  Oversee the cleanup of contaminated sites; and

     (3)  Evaluate health effects of air and water pollutants.

     §   -7  Environmental planning office.  The department shall have an environmental planning office that shall develop strategic plans, support land use reviews, and facilitate new programs.

     §   -8  Rules.  The department shall adopt rules pursuant to chapter 91 necessary for the purposes of this chapter."

     SECTION 4.  Chapter 26, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows:

     "§26-     Department of environmental protection.  (a)  The department of environmental protection shall be headed by a single executive to be known as the director of environmental protection.  The director shall appoint, without regard to chapter 76, a deputy director of environmental protection.

     (b)  The department shall be responsible for exercising regulatory functions and coordinating responsibilities to manage the State's environment."

PART III

     SECTION 5.  The purpose of this part is to rename the department of health as the department of community health.

     SECTION 6.  (a)  Except as provided in subsection (b), the titles, parts, chapters and sections of the Hawaii Revised Statutes are amended by:

     (1)  Substituting the phrase "department of community health," or a similar term, wherever the phrase "department of health", or a similar term, appears, as the context requires; and

     (2)  Substituting the phrase "director of community health", or a similar term, wherever the term "director of health", or a similar term, appears, as the context requires.

     (b)  The substitutions described in subsection (a) shall not apply in any instance in which this Act specifically amends a chapter or section of the Hawaii Revised Statutes to amend the term "department of health," or a similar term, or the term "director of health", or a similar term, to another term.

PART IV

     SECTION 7.  The purpose of this part is to rename the department of human services as the department of healthcare services.

     SECTION 8.  (a)  Except as provided in subsection (b), the titles, parts, chapters and sections of the Hawaii Revised Statutes are amended by:

     (1)  Substituting the phrase "department of healthcare services," or a similar term, wherever the phrase "department of human services", or a similar term, appears, as the context requires; and

     (2)  Substituting the phrase "director of healthcare services", or a similar term, wherever the term "director of human services", or a similar term, appears, as the context requires.

     (b)  The substitutions described in subsection (a) shall not apply in any instance in which this Act specifically amends a chapter or section of the Hawaii Revised Statutes to amend the term "department of human services," or a similar term, or the term "director of human services", or a similar term, to another term.

PART V

     SECTION 9.  The purpose of this part is to transfer certain duties from the department of community health (formerly the department of health) to the department of healthcare services (formerly the department of human services).

     SECTION 10.  Section 321-1.4, Hawaii Revised Statutes, is amended to read as follows:

     "§321-1.4  Office of health care assurance special fund; deposits; expenditures.  (a)  There is established within the department of [health,] healthcare services, to be administered by the department of [health,] healthcare services, the office of health care assurance special fund into which shall be deposited moneys collected [under section 321-11.5(b),] from license fees for the administration of the durable medical equipment supplier license program collected pursuant to section 321-544[,] and all administrative penalties imposed and collected by the office of health care assurance [pursuant to section 321-20].

     (b)  Moneys in the special fund shall be expended by the department of [health:] healthcare services:

     (1)  To assist in offsetting operating costs and educational program expenses of the department of [health's] healthcare service's office of health care assurance; and

     (2)  For the purpose of enhancing the capacity of office of health care assurance programs to:

          (A)  Improve public health outreach efforts, program and community development, and consultations to industries regulated;

          (B)  Educate the public, the staff of the department of [health,] healthcare services, and other departments within the State, as well as staff and providers of all health care facilities and agencies regulated; and

          (C)  Administer and support the durable medical equipment supplier license program established pursuant to part XLIII.

     (c)  The department of [health] healthcare services shall submit a report to the legislature concerning the status of the special fund, including the amount of moneys deposited into and expended from the special fund, and the sources of receipts and uses of expenditures, no later than twenty days prior to the convening of each regular session."

     SECTION 11.  Section 321-16.6, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

     "(a)  All therapeutic living programs shall be licensed by the department of healthcare services to ensure the health, safety, and welfare of the individuals placed therein.

     (b)  The director of healthcare services shall adopt rules regarding therapeutic living programs in accordance with chapter 91 that shall be designed to:

     (1)  Comply with applicable federal laws and regulations; and

     (2)  Provide penalties for the failure to comply with any rule."

     SECTION 12.  Chapters 323D, 333E, 333F, 334, 334B, 334E, and 448B; parts XVI, XLIII, and XXXVIII of chapter 321; and sections 302A-493, 321-1.8, 321-1.9, 321-11.2, 321-11.8, 321‑15.2, 321-15.6, 321-15.61, 321-15.62, 321-15.63, 321-15.9, 321-21, 321-482, 321-483, 329-4, and 329-104, Hawaii Revised Statutes, are amended by:

     (1)  Substituting the phrase "department of healthcare services," or a similar term, wherever the phrase "department of health", "department", or a similar term referring to department of health, appears, as the context requires; and

     (2)  Substituting the phrase "director of healthcare services", or a similar term, wherever the term "director of health", "director", or a similar term referring to the director of health, appears, as the context requires.

     SECTION 13.  Section 321-11.5, Hawaii Revised Statutes, is repealed.

     ["§321-11.5  Establishment of fees.  (a)  The department of health, by rules adopted pursuant to chapter 91, may establish reasonable fees for the issuance or renewal of licenses, permits, variances, and various certificates required by law or by the department's rules.  The fees may include the cost of related examinations, inspections, investigations, and reviews.

     (b)  All fees paid and collected pursuant to this section and rules adopted in accordance with chapter 91 from facilities seeking licensure or certification by the department of health, including hospitals, nursing homes, home health agencies, home care agencies, intermediate care facilities for individuals with intellectual disabilities, freestanding outpatient surgical facilities, adult day health care centers, rural health centers, laboratories, adult residential care homes, expanded adult residential care homes, developmental disability domiciliary homes, assisted living facilities, therapeutic living programs, and special treatment facilities, shall be deposited into the office of health care assurance special fund created under section 321-1.4.  Any other entities required by law to be licensed by the department of health shall also be subject to reasonable fees established by the department of health by rules adopted in accordance with chapter 91.

     (c)  Other than the fees collected under subsection (b), all other fees collected under this section and section 321-15 shall be deposited into the sanitation and environmental health special fund established under section 321-27."]

     SECTION 14.  No more than ninety days after the transfer completion date established pursuant to section 30 of this Act, 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 community health relating to the functions transferred to the department of healthcare services shall be transferred with the functions to which they relate.

     SECTION 15.  All rights, powers, functions, and duties of the department of community health that are assigned to the department of healthcare services by this Act are transferred to the department of healthcare services.

     SECTION 16.  (a)  The department of community health shall be responsible for all obligations incurred by the department in connection with the department's exercise of the authority and performance of the duties and responsibilities conferred upon it and the director of community health by the statutory duties transferred to the department of healthcare services pursuant to this Act, until the time that the obligations, including any accounts payable, accrued paid time off, debt, capital leases, and other obligations incurred before the transfer completion date established pursuant to section 30 of this Act, have been assumed by the department of healthcare services, which shall not occur prior to the transfer completion date.

     (b)  All collective bargaining disputes or claims against the department of community health grounded in an act or omission, or an event that occurred prior to the transfer completion date, shall remain the responsibility of the department of community health.

     (c)  All liabilities arising out of the department of healthcare services' exercise of the authority and performance of the duties and responsibilities conferred upon it and the director of community health by the statutory duties transferred to the department of healthcare services pursuant to this Act after the transfer completion date shall be the responsibility of the department of healthcare services.

     (d)  The assumption by the department of healthcare services of any bonds, notes, or other obligations of the department of community health shall be subject to the terms and provisions of any certificate, indenture, or resolution securing those bonds, notes, or other obligations.

     (e)  On the transfer completion date, the department of healthcare services shall assume responsibility for all rights, duties, penalties, and proceedings of the department of community health transferred to the department of healthcare services by this Act.

     SECTION 17.  All rules, policies, procedures, guidelines, and other materials adopted or developed by the department of community health to implement provisions of the Hawaii Revised Statutes that are reenacted or made applicable to the department of healthcare services by this Act shall remain in full force and effect on and after the transfer completion date established pursuant to section 30 of this Act, until amended or repealed by the department of healthcare services pursuant to chapter 91, Hawaii Revised Statutes.  In the interim, every reference to the department of community health, department of health, director of community health, or director of health in those rules, policies, procedures, guidelines, and other materials, is amended to refer to the department of healthcare services or director of healthcare services, as appropriate.

     SECTION 18.  All deeds, executive orders, leases, contracts, loans, agreements, permits, or other documents executed or entered into by or on behalf of the department of community health, pursuant to the provisions of the Hawaii Revised Statutes, that are reenacted or made applicable to the department of healthcare services by this Act shall remain in full force and effect.  On the transfer completion date established pursuant to section 30 of this Act, every reference to the department of community health, department of health, director of community health, or director of health, in those deeds, executive orders, leases, contracts, loans, agreements, permits, or other documents shall be construed as a reference to the department of healthcare services or director of healthcare services, as appropriate.

PART VI

     SECTION 19.  The purpose of this part is to transfer certain duties from the department of healthcare services (formerly the department of human services) to the department of community health (formerly the department of health).

     SECTION 20.  Chapters 347, 348, 350, 350B, 350C, and 350E; parts II, III, V, VIII, X, XI, XII, and XIX, of chapter 346; and sections 40-85, 76-16, 202-1, 235-55.91, 302A-433.5, 302L-1, 346-7, 346-14.5, 346-15, 346-17, 346-17.5, 346-29, 346-37, 346‑37.1, 386-25, 394-2, 551E-16, 658G-19, 658H-6, and 658J-12 Hawaii Revised Statutes, are amended by:

     (1)  Substituting the phrase "department of community health," or a similar term, wherever the phrase "department of human services", "department", or a similar term referring to the department of human services, appears, as the context requires; and

     (2)  Substituting the phrase "director of community health", or a similar term, wherever the term "director of human services", "director", or a similar term referring to the director of human services, appears, as the context requires.

     SECTION 21.  No more than ninety days after the transfer completion date established pursuant to section 30 of this Act, 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 healthcare services relating to the functions transferred to the department of community health shall be transferred with the functions to which they relate.

     SECTION 22.  All rights, powers, functions, and duties of the department of healthcare services that are assigned to the department of community health by this Act are transferred to the department of community health.

     SECTION 23.  (a)  The department of healthcare services shall be responsible for all obligations incurred by the department in connection with the department's exercise of the authority and performance of the duties and responsibilities conferred upon it and the director of healthcare services by the statutory duties transferred to the department of community health pursuant to this Act, until the time that the obligations, including any accounts payable, accrued paid time off, debt, capital leases, and other obligations incurred before the transfer completion date established pursuant to section 30 of this Act, have been assumed by the department of community health, which shall not occur prior to the transfer completion date.

     (b)  All collective bargaining disputes or claims against the department of healthcare services grounded in an act or omission, or an event that occurred prior to the transfer completion date, shall remain the responsibility of the department of healthcare services.

     (c)  All liabilities arising out of the department of healthcare services' exercise of the authority and performance of the duties and responsibilities conferred upon it and the director of healthcare services by the statutory duties transferred to the department of community health pursuant to this Act after the transfer completion date shall be the responsibility of the department of community health.

     (d)  The assumption by the department of community health of any bonds, notes, or other obligations of the department of healthcare services shall be subject to the terms and provisions of any certificate, indenture, or resolution securing those bonds, notes, or other obligations.

     (e)  On the transfer completion date, the department of community health shall assume responsibility for all rights, duties, penalties, and proceedings of the department of community transferred to the department of community health by this Act.

     SECTION 24.  All rules, policies, procedures, guidelines, and other materials adopted or developed by the department of healthcare services to implement provisions of the Hawaii Revised Statutes that are reenacted or made applicable to the department of community health by this Act shall remain in full force and effect on and after the transfer completion date established pursuant to section 30 of this Act, until amended or repealed by the department of community health pursuant to chapter 91, Hawaii Revised Statutes.  In the interim, every reference to the department of healthcare services, department of human services, director of healthcare services, or director of human services in those rules, policies, procedures, guidelines, and other materials, is amended to refer to the department of community health or director of community health, as appropriate.

     SECTION 25.  All deeds, executive orders, leases, contracts, loans, agreements, permits, or other documents executed or entered into by or on behalf of the department of healthcare services, pursuant to the provisions of the Hawaii Revised Statutes, that are reenacted or made applicable to the department of community health by this Act shall remain in full force and effect.  On the transfer completion date established pursuant to section 30 of this Act, every reference to the department of healthcare services, department of human services, director of healthcare services, or director of human services, in those deeds, executive orders, leases, contracts, loans, agreements, permits, or other documents shall be construed as a reference to the department of community health or director of community health, as appropriate.

PART VII

     SECTION 26.  The purpose of this part is to transfer certain duties from the department of community health (formerly the department of health) to the department of environmental protection.

     SECTION 27.  Section 225P-4, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  The membership of the greenhouse gas sequestration task force shall be as follows:

     (1)  The director of the office of planning and sustainable development or the director's designee, who shall serve as chairperson;

     (2)  The chairperson of the board of agriculture or the chairperson's designee;

     (3)  The chairperson of the board of land and natural resources or the chairperson's designee;

     (4)  The director of transportation or the director's designee;

     (5)  [The deputy director of the department of health's] A representative from the department of environmental protection responsible for addressing environmental health [administration or the deputy director's designee;] matters;

     (6)  The state sustainability coordinator;

     (7)  The director of the environmental law program at the University of Hawaii at Manoa William S. Richardson school of law;

     (8)  The administrator of the division of forestry and wildlife within the department of land and natural resources or the administrator's designee;

     (9)  One member who is also a member of the climate change mitigation and adaptation commission;

    (10)  One researcher from the college of tropical agriculture and human resources at the University of Hawaii at Manoa;

    (11)  One extension agent from the college of tropical agriculture and human resources at the University of Hawaii at Manoa;

    (12)  Four members, one each to be appointed by the respective mayors of the city and county of Honolulu, and the counties of Hawaii, Kauai, and Maui; and

    (13)  Four members to be jointly selected and invited to participate by the president of the senate and the speaker of the house of representatives, of which two members shall be selected from an environmental nonprofit organization, and two members shall be selected from an agricultural or ranching association.

     Task force members may recommend to the task force additional members with appropriate specialized expertise, subject to approval by the chairperson."

     SECTION 28.  Section 321-4.5, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§321-4.5[]]  Inspection of food establishments.  (a)  Inspections of food establishments may be performed only by a registered sanitarian or a food and drug inspector.

     (b)  The department of environmental protection shall enforce this section."

     SECTION 29.  Chapters 128D, 328, 328D, 339, 339D, 340A, 340B, 340E, 340F, 342B, 342D, 342E, 342G, 342H, 342I, 342J, 342L, 342P, and 508C; and sections 46-1.5, 46-20, 46-20.5, 48E‑1, 53-60(i), 103D-1005(b), 150A-6.3, 174C-31, 174C-71, 174C‑84, 183C-4, 200-14(c), 205-2, 205-4.5, 200-14, 266-25, 286‑225, 321‑1.1, 321-4.6, 321-27.5, 321-30.3, 444-7.5, and 708‑829, Hawaii Revised Statutes, are amended by:

     (1)  Substituting the phrase "department of environmental protection," or a similar term, wherever the phrase "department of health", "department", or a similar term referring to the department of health, appears, as the context requires; and

     (2)  Substituting the phrase "director of environmental protection", or a similar term, wherever the term "director of health", "director", or a similar term referring to the director of health, appears, as the context requires.

     SECTION 30.  (a)  Within ninety days of the effective date of this Act, the governor shall designate a representative who shall facilitate the department of environmental protection's orderly succession to the jurisdiction, powers, functions, rights, benefits, obligations, assets, liabilities, funds, accounts, contracts, and all other things currently held, used, incurred, or performed by the department of community health (formerly the department of health), or its director and staff, in administering and exercising the authority and fulfilling the responsibilities authorized or conferred upon the department of environmental protection by this Act.

     (b)  Within one hundred eighty days of the effective date of this Act, the governor shall appoint a director of environmental protection.

     (c)  To facilitate the department of environmental protection's timely assumption of its authority and responsibilities, the department of community health, department of accounting and general services, department of human resources development, state procurement office, and any other state department or agency shall, if requested by the department of environmental protection, shall enter into a memorandum of understanding with the department of environmental protection to:

     (1)  Provide administrative support services for the department of environmental protection pending the transfer of employees to the director of environmental protection;

     (2)  Develop a policy and set of robust procurement procedures that foster accountability, transparency, and oversight of contracts, including compliance with federal procurement requirements;

     (3)  Assist the department of environmental protection with the organization of its human resources development functions, including establishing:

          (A)  A human resources office; and

          (B)  The department of environmental protection's civil service and civil service positions; and the classification system; merit appeals board; recruitment system; performance appraisal system; and administrative rules, policies, standards and procedures, including internal complaint procedures, adopted to support its civil service;

     (4)  Assist the department of environmental protection in establishing accounting, budgeting, fund management, and communication and electronic information systems, and creating appropriate interfaces between the department's accounting, budgeting, fund management, communication, and electronic information systems, and those of other departments and state agencies;

     (5)  Assist the department of environmental protection in identifying the plans and reports that departments and agencies are required to prepare for the governor, legislature, or other state department or agency; determining whether the plans and reports have been prepared and will be transferred to the department of environmental protection on the transfer completion date established pursuant to this section; and preparing the plans and reports for the department of environmental protection, if they do not exist; and

     (6)  Expeditiously transfer to, or otherwise facilitate the department of environmental protection's acquisition or assumption of, all of the powers, functions, rights, benefits, obligations, assets, funds, accounts, contracts and other things held, used, incurred, and performed by other departments and agencies and transferred to the department of environmental protection by this Act.

     (d)  As soon as feasible, the department of environmental protection, with the concurrence of the director of community health, director of healthcare services, and governor, shall establish the transfer completion date, which shall be no later than December 31, 2026, and shall publish notice of the transfer completion date by:

     (1)  Publishing the notice in a daily publication of statewide circulation pursuant to section 1-28.5, Hawaii Revised Statutes;

     (2)  Posting a copy of the notice on an electronic calendar on a website maintained by the State; and

     (3)  Providing a copy of the notice to the head of every other state department.

     SECTION 31.  No more than ninety days after the transfer completion date established pursuant to section 30 of this Act, 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 community health relating to the functions transferred to the department of environmental protection shall be transferred with the functions to which they relate.

     SECTION 32.  All rights, powers, functions, and duties of the department of community health that are assigned to the department of environmental protection by this Act are transferred to the department of environmental protection.

     SECTION 33.  (a)  The department of community health shall be responsible for all obligations incurred by the department in connection with the department's exercise of the authority and performance of the duties and responsibilities conferred upon it and the director of community health by the statutory duties transferred to the department of environmental protection pursuant to this Act, until the time that the obligations, including any accounts payable, accrued paid time off, debt, capital leases, and other obligations incurred before the transfer completion date established pursuant to section 30 of this Act, have been assumed by the department of environmental protection, which shall not occur prior to the transfer completion date.

     (b)  All collective bargaining disputes or claims against the department of community health grounded in an act or omission, or an event that occurred prior to the transfer completion date, shall remain the responsibility of the department of community health.

     (c)  All liabilities arising out of the department of environmental protection's exercise of the authority and performance of the duties and responsibilities conferred upon it and the director of community health by the statutory duties transferred to the department of environmental protection pursuant to this Act after the transfer completion date shall be the responsibility of the department of environmental protection.

     (d)  The assumption by the department of environmental protection of any bonds, notes, or other obligations of the department of community health shall be subject to the terms and provisions of any certificate, indenture, or resolution securing those bonds, notes, or other obligations.

     (e)  On the transfer completion date, the department of environmental protection shall assume responsibility for all rights, duties, penalties, and proceedings of the department of community health transferred to the department of environmental protection by this Act.

     SECTION 34.  All rules, policies, procedures, guidelines, and other materials adopted or developed by the department of community health to implement provisions of the Hawaii Revised Statutes that are reenacted or made applicable to the department of environmental protection by this Act shall remain in full force and effect on and after the transfer completion date established pursuant to section 30 of this Act, until amended or repealed by the department of environmental protection pursuant to chapter 91, Hawaii Revised Statutes.  In the interim, every reference to the department of community health, department of health, director of community health, or director of health in those rules, policies, procedures, guidelines, and other materials, is amended to refer to the department of environmental protection or director of environmental protection, as appropriate.

     SECTION 35.  All deeds, executive orders, leases, contracts, loans, agreements, permits, or other documents executed or entered into by or on behalf of the department of community health, pursuant to the provisions of the Hawaii Revised Statutes, that are reenacted or made applicable to the department of environmental protection by this Act shall remain in full force and effect.  On the transfer completion date established pursuant to section 30 of this Act, every reference to the department of community health, department of health, director of community health, or director of health, in those deeds, executive orders, leases, contracts, loans, agreements, permits, or other documents shall be construed as a reference to the department of environmental protection or director of environmental protection, as appropriate.

PART VIII

     SECTION 36.  The purpose of this part is to administratively attach the Hawaii employer-union health benefits trust fund to the department of healthcare services (formerly the department of human services).

     SECTION 37.  Section 87A-30, Hawaii Revised Statutes, is amended to read as follows:

     "§87A-30  Hawaii employer-union health benefits trust fund; establishment.  There is established outside the state treasury, a trust fund to be known as the "Hawaii Employer-Union Health Benefits Trust Fund".  The fund shall consist of contributions, interest, income, dividends, refunds, rate credits, and other returns.  It is hereby declared that any and all sums contributed or paid from any source to the fund created by this part, and all assets of the fund including any and all interest and earnings on the same, are and shall be held in trust by the board for the exclusive use and benefit of the employee-beneficiaries and dependent-beneficiaries and shall not be subject to appropriation for any other purpose whatsoever.  The fund shall be under the control of the board and placed under the department of [budget and finance] healthcare services for administrative purposes."

     SECTION 38.  No more than ninety days after the transfer completion date established pursuant to section 30 of this Act, all appropriations, records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by the department of budget and finance relating to the functions transferred to the department of healthcare services shall be transferred with the functions to which they relate.

     SECTION 39.  All rights, powers, functions, and duties of the department of budget and finance that are assigned to the department of healthcare services by this Act are transferred to the department of healthcare services.

     SECTION 40.  (a)  The department of budget and finance shall be responsible for all obligations incurred by the department in connection with the department's exercise of the authority and performance of the duties and responsibilities conferred upon it and the director of finance by the statutory duties transferred to the department of healthcare services pursuant to this Act, until the time that the obligations, including any accounts payable, accrued paid time off, debt, capital leases, and other obligations incurred before the transfer completion date established pursuant to section 30 of this Act, have been assumed by the department of healthcare services, which shall not occur prior to the transfer completion date.

     (b)  All collective bargaining disputes or claims against the department of budget and finance grounded in an act or omission, or an event that occurred prior to the transfer completion date, shall remain the responsibility of the department of budget and finance.

     (c)  All liabilities arising out of the department of budget and finance's exercise of the authority and performance of the duties and responsibilities conferred upon it and the director of finance by the statutory duties transferred to the department of healthcare services pursuant to this Act after the transfer completion date shall be the responsibility of the department of healthcare services.

     (d)  The assumption by the department of healthcare services of any bonds, notes, or other obligations of the department of budget and finance shall be subject to the terms and provisions of any certificate, indenture, or resolution securing those bonds, notes, or other obligations.

     (e)  On the transfer completion date, the department of healthcare services shall assume responsibility for all rights, duties, penalties, and proceedings of the department of budget and finance transferred to the department of healthcare services by this Act.

     SECTION 41.  All rules, policies, procedures, guidelines, and other materials adopted or developed by the department of budget and finance to implement provisions of the Hawaii Revised Statutes that are reenacted or made applicable to the department of healthcare services by this Act shall remain in full force and effect on and after the transfer completion date established pursuant to section 30 of this Act, until amended or repealed by the department of healthcare services pursuant to chapter 91, Hawaii Revised Statutes.  In the interim, every reference to the department of budget and finance or director of finance in those rules, policies, procedures, guidelines, and other materials, is amended to refer to the department of healthcare services or director of healthcare services, as appropriate.

     SECTION 42.  All deeds, executive orders, leases, contracts, loans, agreements, permits, or other documents executed or entered into by or on behalf of the department of budget and finance, pursuant to the provisions of the Hawaii Revised Statutes, that are reenacted or made applicable to the department of healthcare services by this Act shall remain in full force and effect.  On the transfer completion date established pursuant to section 30 of this Act, every reference to the department of budget and finance or director of finance, in those deeds, executive orders, leases, contracts, loans, agreements, permits, or other documents shall be construed as a reference to the department of healthcare services or director of healthcare services, as appropriate.

PART IX

     SECTION 43.  This purpose of this part to amend various provisions of the Hawaii Revised Statutes to facilitate the renaming of departments and transfer of certain duties between departments as provided by other parts of this Act.

     SECTION 44.  Chapter 321, Hawaii Revised Statutes, is amended by amending its title to read as follows:

"CHAPTER 321

[DEPARTMENT OF] HEALTH MATTERS"

     SECTION 45.  Chapter 346, Hawaii Revised Statutes, is amended by amending its title to read as follows:

"CHAPTER 346

[DEPARTMENT OF HUMAN] SERVICES"

     SECTION 46.  Section 26-4, Hawaii Revised Statutes, is amended to read as follows:

     "§26-4  Structure of government.  Under the supervision of the governor, all executive and administrative offices, departments, and instrumentalities of the state government and their respective functions, powers, and duties shall be allocated among and within the following principal departments that are hereby established:

     (1)  Department of human resources development (Section 26‑5);

     (2)  Department of accounting and general services (Section 26-6);

     (3)  Department of the attorney general (Section 26-7);

     (4)  Department of budget and finance (Section 26-8);

     (5)  Department of commerce and consumer affairs (Section 26-9);

     (6)  Department of taxation (Section 26-10);

     (7)  University of Hawaii (Section 26-11);

     (8)  Department of education (Section 26-12);

     (9)  Department of community health (Section 26-13);

    (10)  Department of [human services] healthcare services (Section 26-14);

    (11)  Department of land and natural resources (Section 26‑15);

    (12)  Department of agriculture (Section 26-16);

    (13)  Department of Hawaiian home lands (Section 26-17);

    (14)  Department of business, economic development, and tourism (Section 26-18);

    (15)  Department of transportation (Section 26-19);

    (16)  Department of labor and industrial relations (Section 26-20);

    (17)  Department of defense (Section 26-21);

    (18)  Department of corrections and rehabilitation (Section 26-14.6); [and]

    (19)  Department of law enforcement (Section 26-14.8)[.]; and

    (20)  Department of environmental protection (Section 26‑   )."

     SECTION 47.  Section 76-16, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The civil service to which this chapter applies shall comprise all positions in the State now existing or hereafter established and embrace all personal services performed for the State, except the following:

     (1)  Commissioned and enlisted personnel of the Hawaii National Guard and positions in the Hawaii National Guard that are required by state or federal laws or regulations or orders of the National Guard to be filled from those commissioned or enlisted personnel;

     (2)  Positions filled by persons employed by contract where the director of human resources development has certified that the service is special or unique or is essential to the public interest and that, because of circumstances surrounding its fulfillment, personnel to perform the service cannot be obtained through normal civil service recruitment procedures.  Any contract may be for any period not exceeding one year;

     (3)  Positions that must be filled without delay to comply with a court order or decree if the director determines that recruitment through normal recruitment civil service procedures would result in delay or noncompliance, such as the Felix-Cayetano consent decree;

     (4)  Positions filled by the legislature or by either house or any committee thereof;

     (5)  Employees in the office of the governor and office of the lieutenant governor, and household employees at Washington Place;

     (6)  Positions filled by popular vote;

     (7)  Department heads, officers, and members of any board, commission, or other state agency whose appointments are made by the governor or are required by law to be confirmed by the senate;

     (8)  Judges, referees, receivers, masters, jurors, notaries public, land court examiners, court commissioners, and attorneys appointed by a state court for a special temporary service;

     (9)  One bailiff for the chief justice of the supreme court who shall have the powers and duties of a court officer and bailiff under section 606-14; one secretary or clerk for each justice of the supreme court, each judge of the intermediate appellate court, and each judge of the circuit court; one secretary for the judicial council; one deputy administrative director of the courts; three law clerks for the chief justice of the supreme court, two law clerks for each associate justice of the supreme court and each judge of the intermediate appellate court, one law clerk for each judge of the circuit court, two additional law clerks for the civil administrative judge of the circuit court of the first circuit, two additional law clerks for the criminal administrative judge of the circuit court of the first circuit, one additional law clerk for the senior judge of the family court of the first circuit, two additional law clerks for the civil motions judge of the circuit court of the first circuit, two additional law clerks for the criminal motions judge of the circuit court of the first circuit, and two law clerks for the administrative judge of the district court of the first circuit; and one private secretary for the administrative director of the courts, the deputy administrative director of the courts, each department head, each deputy or first assistant, and each additional deputy, or assistant deputy, or assistant defined in paragraph (16);

    (10)  First deputy and deputy attorneys general, the administrative services manager of the department of the attorney general, one secretary for the administrative services manager, an administrator and any support staff for the criminal and juvenile justice resources coordination functions, and law clerks;

    (11)  (A)  Teachers, principals, vice-principals, complex area superintendents, deputy and assistant superintendents, other certificated personnel, and no more than twenty noncertificated administrative, professional, and technical personnel not engaged in instructional work;

          (B)  Effective July 1, 2003, teaching assistants, educational assistants, bilingual or bicultural school-home assistants, school psychologists, psychological examiners, speech pathologists, athletic health care trainers, alternative school work study assistants, alternative school educational or supportive services specialists, alternative school project coordinators, and communications aides in the department of education;

          (C)  The special assistant to the state librarian and one secretary for the special assistant to the state librarian; and

          (D)  Members of the faculty of the University of Hawaii, including research workers, extension agents, personnel engaged in instructional work, and administrative, professional, and technical personnel of the university;

    (12)  Employees engaged in special, research, or demonstration projects approved by the governor;

    (13)  (A)  Positions filled by inmates, patients of state institutions, and persons with severe physical or mental disabilities participating in the work experience training programs;

          (B)  Positions filled with students in accordance with guidelines for established state employment programs; and

          (C)  Positions that provide work experience training or temporary public service employment that are filled by persons entering the workforce or persons transitioning into other careers under programs such as the federal Workforce Investment Act of 1998, as amended, or the Senior Community Service Employment Program of the Employment and Training Administration of the United States Department of Labor, or under other similar state programs;

    (14)  A custodian or guide at Iolani Palace, the Royal Mausoleum, and Hulihee Palace;

    (15)  Positions filled by persons employed on a fee, contract, or piecework basis, who may lawfully perform their duties concurrently with their private business or profession or other private employment and whose duties require only a portion of their time, if it is impracticable to ascertain or anticipate the portion of time to be devoted to the service of the State;

    (16)  Positions of first deputies or first assistants of each department head appointed under or in the manner provided in section 6, article V, of the Hawaii State Constitution; three additional deputies or assistants either in charge of the highways, harbors, and airports divisions or other functions within the department of transportation as may be assigned by the director of transportation, with the approval of the governor; one additional deputy in the department of [human] healthcare services [either] in charge of [welfare or other] functions within the department as may be assigned by the director of [human] healthcare services; [four] three additional deputies in the department of community health, each in charge of one of the following:  behavioral health, [environmental health,] hospitals, and health resources administration, including other functions within the department as may be assigned by the director of community health, with the approval of the governor; two additional deputies in charge of the law enforcement programs, administration, or other functions within the department of law enforcement as may be assigned by the director of law enforcement, with the approval of the governor; three additional deputies each in charge of the correctional institutions, rehabilitation services and programs, and administration or other functions within the department of corrections and rehabilitation as may be assigned by the director of corrections and rehabilitation, with the approval of the governor; two administrative assistants to the state librarian; and an administrative assistant to the superintendent of education;

    (17)  Positions specifically exempted from this part by any other law; provided that:

          (A)  Any exemption created after July 1, 2014, shall expire three years after its enactment unless affirmatively extended by an act of the legislature; and

          (B)  All of the positions defined by paragraph (9) shall be included in the position classification plan;

    (18)  Positions in the state foster grandparent program and positions for temporary employment of senior citizens in occupations in which there is a severe personnel shortage or in special projects;

    (19)  Household employees at the official residence of the president of the University of Hawaii;

    (20)  Employees in the department of education engaged in the supervision of students during meal periods in the distribution, collection, and counting of meal tickets, and in the cleaning of classrooms after school hours on a less than half-time basis;

    (21)  Employees hired under the tenant hire program of the Hawaii public housing authority; provided that no more than twenty-six per cent of the authority's workforce in any housing project maintained or operated by the authority shall be hired under the tenant hire program;

    (22)  Positions of the federally funded expanded food and nutrition program of the University of Hawaii that require the hiring of nutrition program assistants who live in the areas they serve;

    (23)  Positions filled by persons with severe disabilities who are certified by the state vocational rehabilitation office that they are able to perform safely the duties of the positions;

    (24)  The sheriff;

    (25)  A gender and other fairness coordinator hired by the judiciary;

    (26)  Positions in the Hawaii National Guard youth and adult education programs;

    (27)  In the Hawaii state energy office in the department of business, economic development, and tourism, all energy program managers, energy program specialists, energy program assistants, and energy analysts;

    (28)  Administrative appeals hearing officers in the department of [human] healthcare services;

    (29)  In the Med-QUEST division of the department of [human] healthcare services, the division administrator, finance officer, health care services branch administrator, medical director, and clinical standards administrator;

    (30)  In the director's office of the department of [human] healthcare services, the enterprise officer, information security and privacy compliance officer, security and privacy compliance engineer, security and privacy compliance analyst, information technology implementation manager, assistant information technology implementation manager, resource manager, community or project development director, policy director, special assistant to the director, and limited English proficiency project manager or coordinator;

    (31)  The Alzheimer's disease and related dementia services coordinator in the executive office on aging;

    (32)  In the Hawaii emergency management agency, the executive officer, public information officer, civil defense administrative officer, branch chiefs, and emergency operations center state warning point personnel; provided that for state warning point personnel, the director shall determine that recruitment through normal civil service recruitment procedures would result in delay or noncompliance;

    (33)  The executive director and seven full-time administrative positions of the school facilities authority;

    (34)  Positions in the Mauna Kea stewardship and oversight authority;

    (35)  In the office of homeland security of the department of law enforcement, the statewide interoperable communications coordinator;

    (36)  In the social services division of the department of [human services,] community health, the business technology analyst;

    (37)  The executive director and staff of the 911 board;

[[](38)[[]    Senior software developers in the department of taxation;

[[](39)[]]    In the department of law enforcement, five Commission on Accreditation for Law Enforcement Agencies, Inc., coordinator positions;

[[](40)[[]    The state fire marshal; [and

  [](41)[[]    The administrator for the law enforcement standards board[.]; and

    (42)  In the department of environmental protection, the deputy director of environmental protection and any other positions as provided by law.

     The director shall determine the applicability of this section to specific positions.

     Nothing in this section shall be deemed to affect the civil service status of any incumbent as it existed on July 1, 1955."

     SECTION 48.  Section 171-64.5, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§171-64.5[]]  Nonconventional uses; department of health; approval and authorization; Waimano ridge.  The department of community health, department of healthcare services, or department of environmental protection, as the case may be, shall provide at least ninety days notification to the affected neighborhood boards and legislators that represent the district where Waimano ridge is located, and obtain the approval of the governor prior to new uses or the expanded use of the land as a sex offender treatment facility, drug treatment facility, state laboratory, or other uses."

     SECTION 49.  Section 188-40.7, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  Prior to July 1, 2011, any restaurant holding a valid certificate, permit, or license issued by the department of health [under section 321-11] may possess, sell, offer for sale, trade, or distribute shark fins possessed by that restaurant as of July 1, 2010 which are prepared for consumption."

     SECTION 50.  Section 321-11, Hawaii Revised Statutes, is amended to read as follows:

     "§321-11  Subjects of community health rules, generally.  The department of community health pursuant to chapter 91 may adopt rules that it deems necessary for the public health and safety respecting:

    [(1)  Nuisances, foul or noxious odors, gases, vapors, waters in which mosquitoes breed or may breed, sources of filth, and causes of sickness or disease, within the respective districts of the State, and on board any vessel;

     (2)  Adulteration and misbranding of food or drugs;

     (3)  Location, air space, ventilation, sanitation, drainage, sewage disposal, and other health conditions of buildings, courts, construction projects, excavations, pools, watercourses, areas, and alleys.  For purposes of this paragraph, "pool" means a watertight artificial structure containing a body of water that does not exchange water with any other body of water, either naturally or mechanically, and is used for swimming, diving, recreational bathing, or therapy by humans;

     (4)  Privy vaults and cesspools;

     (5)  Fish and fishing;

     (6)  Interments and dead bodies;

     (7)  Disinterments of dead human bodies, including the exposing, disturbing, or removing of these bodies from their place of burial, or the opening, removing, or disturbing after due interment of any receptacle, coffin, or container holding human remains or a dead human body or a part thereof and the issuance and terms of permits for the aforesaid disinterments of dead human bodies;

     (8)  Cemeteries and burying grounds;

     (9)  Laundries, and the laundering, sanitation, and sterilization of articles including linen and uniforms used by or in the following businesses and professions:  barber shops, manicure shops, beauty parlors, electrology shops, restaurants, soda fountains, hotels, rooming and boarding houses, bakeries, butcher shops, public bathhouses, midwives, masseurs, and others in similar calling, public or private hospitals, and canneries and bottling works where foods or beverages are canned or bottled for public consumption or sale; provided that nothing in this chapter shall be construed as authorizing the prohibiting of laundering, sanitation, and sterilization by those conducting any of these businesses or professions where the laundering or sterilization is done in an efficient and sanitary manner;

    (10)] (1)  Hospitals, freestanding surgical outpatient facilities, skilled nursing facilities, intermediate care facilities, [adult residential care homes, adult foster homes, assisted living facilities, special treatment facilities and programs, home health agencies, home care agencies, hospices, freestanding birthing facilities, adult day health centers, independent group residences, and therapeutic living programs, but excluding] and youth shelter facilities [unless], provided that clinical treatment of mental, emotional, or physical disease or handicap is a part of the routine program or constitutes the main purpose of the facility, as defined in section 346-16 under "child caring institution"[.  For the purpose of this paragraph, "adult foster home" has the same meaning as provided in section 321-11.2];

   [(11)  Hotels, rooming houses, lodging houses, apartment houses, tenements, and residences for persons with developmental disabilities including those built under federal funding;

    (12)] (2)  Laboratories[;], except those under the jurisdiction of the department of environmental protection;

   [(13)  Any place or building where noisome or noxious trades or manufacturing is carried on, or intended to be carried on;

    (14)  Milk;

    (15)  Poisons and hazardous substances, the latter term including any substance or mixture of substances that:

          (A)  Is corrosive;

          (B)  Is an irritant;

          (C)  Is a strong sensitizer;

          (D)  Is inflammable; or

          (E)  Generates pressure through decomposition, heat, or other means,

          if the substance or mixture of substances may cause substantial personal injury or substantial illness during or as a proximate result of any customary or reasonably foreseeable handling or use, including reasonably foreseeable ingestion by children;

    (16)  Pig and duck ranches;

    (17)  Places of business, industry, employment, and commerce, and the processes, materials, tools, machinery, and methods of work done therein; and places of public gathering, recreation, or entertainment;

    (18)  Any restaurant, theater, market, stand, shop, store, factory, building, wagon, vehicle, or place where any food, drug, or cosmetic is manufactured, compounded, processed, extracted, prepared, stored, distributed, sold, offered for sale, or offered for human consumption or use;

    (19)  Foods, drugs, and cosmetics, and the manufacture, compounding, processing, extracting, preparing, storing, selling, and offering for sale, consumption, or use of any food, drug, or cosmetic;

    (20)  Device as defined in section 328-1;

    (21)  Sources of ionizing radiation;

    (22)] (3)  Medical examination, vaccination, revaccination, and immunization of school children.  No child shall be subjected to medical examination, vaccination, revaccination, or immunization, whose parent or guardian objects in writing thereto on grounds that the requirements are not in accordance with the religious tenets of an established church of which the parent or guardian is a member or adherent, but no objection shall be recognized when, in the opinion of the department, there is danger of an epidemic from any communicable disease;

   [(23)  Disinsectization of aircraft entering or within the State as may be necessary to prevent the introduction, transmission, or spread of disease or the introduction or spread of any insect or other vector of significance to health;

    (24)  Fumigation, including the process by which substances emit or liberate gases, fumes, or vapors that may be used for the destruction or control of insects, vermin, rodents, or other pests, which, in the opinion of the department, may be lethal, poisonous, noxious, or dangerous to human life;] and

   [(25)] (4)  Ambulances and ambulance equipment[;

    (26)  Development, review, approval, or disapproval of management plans submitted pursuant to the Asbestos Hazard Emergency Response Act of 1986, Public Law 99‑519; and

    (27)  Development, review, approval, or disapproval of an accreditation program for specially trained persons pursuant to the Residential Lead-Based Paint Hazard Reduction Act of 1992, Public Law 102-550].

     (b)  The department of community health may require any certificates, permits, or licenses that it may deem necessary to adequately regulate the conditions or businesses referred to in this section."

     SECTION 51.  Section 321-13, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  The department of health, with the approval of the governor, may adopt rules as it deems necessary for the public health or safety respecting:

     (1)  The occupations or practices of clinical laboratory directors, medical technologists (clinical laboratory scientists), clinical laboratory specialists, cytotechnologists, medical laboratory technicians (clinical laboratory technicians), and tattoo artists[, and environmental health professionals];

     (2)  The health, education, training, experience, habits, qualifications, or character of persons to whom certificates of registration or permits for these occupations or practices may be issued;

     (3)  The health, habits, character, practices, standards, or conduct of persons holding these certificates or permits; and

     (4)  The grounds or causes for revoking or suspending these certificates or permits.

The rules shall have the force and effect of law."

     SECTION 52.  Section 321-15, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Every person holding a license to practice any occupation specified in section 321-13(a)(1) shall reregister with the department of health every other year in accordance with the rules of the department, before February 1 except where superseded by federal law, and shall pay a reregistration fee.  The failure, neglect, or refusal of any person holding a license to reregister or pay the reregistration fee, after thirty days of delinquency, shall constitute a forfeiture of the person's license; provided that the license shall be restored upon written application therefor together with a payment of all delinquent fees and an additional late reregistration fee that may be established by the director of health.  [All fees collected pursuant to this section shall be deposited into the sanitation and environmental health special fund established under section 321-27.]"

     SECTION 53.  Section 321-27, Hawaii Revised Statutes, is amended to read as follows:

     "§321-27  Sanitation and environmental health special fund.  (a)  There is established within the department of [health] environmental protection the sanitation and environmental health special fund into which shall be deposited all moneys collected from fees for permits, licenses, inspections, various certificates, variances, investigations, and reviews, pursuant to [sections 321-11.5(c) and 321-15.] applicable law.

     (b)  Moneys in the fund shall be expended by the department of environmental protection to partially fund the operating costs of program activities and functions [authorized pursuant to section 321-11] to enhance the capacity of sanitation and environmental health programs to:

     (1)  Improve public outreach efforts and consultations to regulated businesses and industries;

     (2)  Educate the public, staff, and regulated businesses and industries;

     (3)  Plan for future growth and expansion to meet emerging needs;

     (4)  Provide training opportunities to ensure the maintenance of professional competence among sanitation and environmental health staff and administrators; and

     (5)  Conduct program activities and functions of the sanitation branch, including permit issuance, inspections, and enforcement and the hiring of additional inspectors;

provided that for environmental health programs, not more than $140,000 of the fund may be used during any fiscal year for fund administration, including the hiring of not more than two full‑time equivalent personnel, and the purchase of office and electronic equipment.

     (c)  Any amount in the fund in excess of $1,500,000 on June 30 of each year shall be deposited into the general fund.

     (d)  The department of [health] environmental protection shall submit a report to the legislature concerning the status of the sanitation and environmental health special fund, including:

     (1)  The amount of moneys taken in by and expended from the fund; and

     (2)  The sources of receipts and uses of expenditures,

not less than twenty days prior to the convening of each regular session."

     SECTION 54.  Section 321-171.5, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

     "(a)  The department of community health shall develop procedures for obtaining verifiable background check information regarding persons who are seeking employment, or seeking to serve as providers or subcontractors, in positions that place them in direct contact with adult, child, or youth clients when providing non-witnessed direct mental health or health care services.  [These procedures shall include but not be limited to background checks as defined in section 321-15.2.]

     (b)  Except as otherwise specified, any person who seeks employment with the department of community health, or who is employed or seeks employment with a provider or subcontractor in a position that necessitates non-witnessed direct contact with clients when providing non-witnessed direct mental health or health care services, shall:

     (1)  Be subject to background checks [in accordance with section 321-15.2];

     (2)  Authorize the disclosure to the department or its designee of background check information; and

     (3)  Provide to the department of community health or its designee written consent for the department or its designee to obtain background check information for verification.

Information obtained pursuant to subsection (a) and this subsection shall be used exclusively by the department of community health for purposes of determining whether a person is suitable for working in a position that necessitates non‑witnessed direct contact with clients when providing non‑witnessed direct mental health or health care services.  All such decisions shall be subject to federal laws and regulations currently or hereafter in effect."

     SECTION 55.  Section 321-353, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  There is established within the department for administrative purposes the Hawaii early intervention coordinating council.  Members shall be appointed for three-year terms by the governor without the necessity of the advice and consent of the senate.  The council shall comprise twenty-five members as follows:

     (1)  At least twenty per cent of the members shall be parents of infants or toddlers with special needs, or children with special needs aged twelve years or younger, with knowledge of, or experience with, programs for infants and toddlers with special needs; provided that at least one parent shall be a parent of an infant or toddler with special needs, or of a child with special needs aged six years or younger;

     (2)  At least twenty per cent of the members shall be public or private providers of early intervention services;

     (3)  Two members shall be from the legislature, of which one member shall be selected by the president of the senate and one member shall be selected by the speaker of the house of representatives;

     (4)  One member shall be involved in personnel preparation;

     (5)  One member shall be from the department of community health program involved in the provision of, or payment for, early intervention services to infants and toddlers with special needs and their families who has sufficient authority to engage in policy planning and implementation on behalf of the program;

     (6)  One member shall be from the department of community health program responsible for children’s mental health;

     (7)  One member shall be from the department of education program responsible for preschool services to children with disabilities who has sufficient authority to engage in policy planning and implementation on behalf of the program;

     (8)  One member shall be from the department of education program responsible for the coordination of education of homeless children and youths;

     (9)  One member shall be from the department of [human] healthcare services program responsible for the state medicaid program;

    (10)  One member shall be from the department of [human services] community health program responsible for child care;

    (11)  One member shall be from the department of [human services] community health program responsible for foster care;

    (12)  One member shall be from the department of commerce and consumer affairs program responsible for state regulation of health insurance;

    (13)  One member shall be from a Head Start or Early Head Start agency or program in the State; and

    (14)  Other members involved in or interested in services to infants and toddlers with special needs and their families who are selected by the governor.

     Any vacancy on the council shall be filled in the same manner in which the original position was filled."

     SECTION 56.  Section 346-14, Hawaii Revised Statutes, is amended to read as follows:

     "§346-14  Duties generally.  Except as otherwise provided by law, the department of [human] healthcare services shall:

     (1)  Establish and administer programs and standards, and adopt rules as deemed necessary for all public assistance programs;

     (2)  Establish, extend, and strengthen services for the protection and care of abused or neglected children and children in danger of becoming delinquent to make paramount the safety and health of children who have been harmed or are in life circumstances that threaten harm;

     (3)  Establish and administer programs, and adopt rules as deemed necessary, for the prevention of domestic and sexual violence and the protection and treatment of victims of domestic and sexual violence;

     (4)  Assist in preventing family breakdown;

     (5)  Place, or cooperate in placing, abused or neglected children in suitable private homes or institutions and place, or cooperate in placing, children in suitable adoptive homes;

     (6)  Have authority to establish, maintain, and operate receiving homes for the temporary care and custody of abused or neglected children until suitable plans are made for their care; and accept from the police and other agencies, for temporary care and custody, any abused or neglected child until satisfactory plans are made for the child;

     (7)  Administer the medical assistance programs for eligible public welfare and other medically needy individuals by establishing standards, eligibility, and health care participation rules, payment methodologies, reimbursement allowances, systems to monitor recipient and provider compliance, and assuring compliance with federal requirements to maximize federal financial participation;

     (8)  Cooperate with the federal government [in carrying out the purposes of the Social Security Act and in other matters of mutual concern pertaining to public welfare, public assistance, and child welfare services, including the making of reports, the adoption of methods of administration, and the making of rules as are found by the federal government, or any properly constituted authority thereunder, to be necessary or desirable for the efficient operation of the plans for public welfare, assistance, and child welfare services or] as may be necessary or desirable for the receipt of financial assistance from the federal government;

     (9)  Carry on research and compile statistics relative to public and private welfare activities throughout the State, including those dealing with dependence, defectiveness, delinquency, and related problems;

    (10)  Develop plans in cooperation with other public and private agencies for the prevention and treatment of conditions giving rise to public welfare problems;

    (11)  Adopt rules governing the procedure in hearings, investigations, recording, registration, determination of allowances, and accounting and conduct other activities as may be necessary or proper to carry out this chapter;

    (12)  Supervise or administer any other activities authorized or required by this chapter, including the development of the staff of the department through in‑service training and educational leave to attend schools and other appropriate measures, and any other activities placed under the jurisdiction of the department by any other law;

    (13)  Make, prescribe, and enforce policies and rules governing the activities provided for in section 346‑31 it deems advisable, including the allocation of moneys available for assistance to persons assigned to work projects among the several counties or to particular projects where the apportionment has not been made pursuant to other provisions of law, if any, governing expenditures of the funds;

    (14)  Determine the appropriate level for the Hawaii security net, by developing a tracking and monitoring system to determine what segments of the population are not able to afford the basic necessities of life, and advise the legislature annually regarding the resources required to maintain the security net at the appropriate level;

    (15)  Subject to the appropriation of state funds and availability of federal matching assistance, expand optional health care to low-income persons as follows:

          (A)  Pregnant women and infants under one year of age living in families with incomes up to one hundred eighty-five per cent of the federal poverty level and without any asset restrictions;

          (B)  Children under six years of age living in families with incomes up to one hundred thirty‑three per cent of the federal poverty level and without any asset restrictions;

          (C)  Older children to the extent permitted under optional federal medicaid rules;

          (D)  Elder persons;

          (E)  Aliens;

          (F)  The homeless; and

          (G)  Other handicapped and medically needy persons; and

    (16)  Subject to the appropriation of state funds and availability of federal matching assistance, establish the income eligibility level for the medically needy program at one hundred thirty-three per cent of the assistance allowance."

     SECTION 57.  Section 378-2.5, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

     "(d)  Notwithstanding subsections (b) and (c), the requirement that inquiry into and consideration of a prospective employee's conviction record may take place only after the individual has received a conditional job offer, and the limitation to the most recent seven-year period for felony convictions and the most recent five-year period for misdemeanor convictions, excluding the period of incarceration, shall not apply to employers who are expressly permitted to inquire into an individual's criminal history for employment purposes pursuant to any federal or state law other than subsection (a), including:

     (1)  The State or any of its branches, political subdivisions, or agencies pursuant to sections 78-2.7 and 831-3.1; provided that any state law permitting the State and any of its branches, political subdivisions, agencies, or semi-autonomous public bodies corporate and politic to conduct more extensive inquiries into an individual's criminal history for employment purposes than those permitted under this section shall prevail;

     (2)  The department of education pursuant to section 302A‑601.5;

     (3)  The department of community health with respect to employees, providers, or subcontractors in positions that place them in direct contact with clients when providing non-witnessed direct mental health services pursuant to section 321-171.5;

     (4)  The judiciary pursuant to section 571-34;

     (5)  The counties pursuant to section 846-2.7(b)(5), (33), (34), (35), (36), and (38);

     (6)  Armed security services pursuant to section 261-17(b);

     (7)  Providers of a developmental disabilities domiciliary home pursuant to section 321-15.2;

     (8)  Private schools pursuant to sections 302C-1 and 378‑3(8);

     (9)  Financial institutions in which deposits are insured by a federal agency having jurisdiction over the financial institution pursuant to section 378-3(9);

    (10)  Detective agencies and security guard agencies pursuant to sections 463-6(b) and 463-8(b);

    (11)  Employers in the business of insurance pursuant to section 431:2-201.3;

    (12)  Employers of individuals or supervisors of individuals responsible for screening passengers or property under title 49 United States Code section 44901 or individuals with unescorted access to an aircraft of an air carrier or foreign carrier or in a secured area of an airport in the United States pursuant to title 49 United States Code section 44936(a);

    (13)  The department of [human] healthcare services pursuant to sections 346-2.5, 346-97, and 352-5.5;

    (14)  The public library system pursuant to section 302A‑601.5;

    (15)  The department of law enforcement pursuant to section 353C-5;

    (16)  The board of directors of a cooperative housing corporation or the manager of a cooperative housing project pursuant to section 421I-12;

    (17)  The board of directors of an association under chapter 514B, or the managing agent or resident manager of a condominium pursuant to section 514B-133;

    (18)  The department of [health] healthcare services pursuant to section 321-15.2; and

    (19)  The department of corrections and rehabilitation pursuant to section 353-1.5."

     SECTION 58.  Section 431:10H-301, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  For the purpose of subsection (b) and for the purpose of describing examples of services typically found in this State, coverage shall be one or more of the following services or any combination of services:

     (1)  Home health care services, as defined in section 431:10H-201;

     (2)  Adult day care, as defined in section 431:10H-201;

     (3)  Adult residential care home, as defined in section 321‑15.1;

     (4)  Extended care adult residential care home, as defined in section 323D-2;

     (5)  Nursing home, as defined in section 457B-2;

     (6)  Skilled nursing facilities and intermediate care facilities, as referenced in section [321-11(10);] 321‑11;

     (7)  Hospices[, as referenced in section 321-11;] under the jurisdiction of the department of healthcare services;

     (8)  Assisted living facility, as defined in section 323D‑2;

     (9)  Personal care, as defined in section 431:10H-201;

    (10)  Respite care, as defined in section 333F-1; and

    (11)  Any other care as provided by rule of the commissioner."

     SECTION 59.  Section 846-2.7, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  Criminal history record checks may be conducted by:

     (1)  The department of [health] healthcare services or its designee on operators of adult foster homes for individuals with developmental disabilities or developmental disabilities domiciliary homes and their employees, as provided by section 321-15.2;

     (2)  The department of community health or its designee on prospective employees, persons seeking to serve as providers, or subcontractors in positions that place them in direct contact with clients when providing non‑witnessed direct mental health or health care services as provided by section 321-171.5;

     (3)  The department of [health] healthcare services or its designee on all applicants for licensure or certification for, operators for, prospective employees, adult volunteers, and all adults, except adults in care, at healthcare facilities as defined in section 321-15.2;

     (4)  The department of education on employees, prospective employees, and teacher trainees in any public school in positions that necessitate close proximity to children as provided by section 302A-601.5;

     (5)  The counties on employees and prospective employees who may be in positions that place them in close proximity to children in recreation or child care programs and services;

     (6)  The county liquor commissions on applicants for liquor licenses as provided by section 281-53.5;

     (7)  The county liquor commissions on employees and prospective employees involved in liquor administration, law enforcement, and liquor control investigations;

     (8)  The department of [human] healthcare services on operators and employees of child caring institutions, child placing organizations, and resource family homes as provided by section 346-17;

     (9)  The department of [human] healthcare services on prospective adoptive parents as established under section 346-19.7;

    (10)  The department of [human] healthcare services or its designee on applicants to operate child care facilities, household members of the applicant, prospective employees of the applicant, and new employees and household members of the provider after registration or licensure as provided by section 346‑154, and persons subject to section 346‑152.5;

    (11)  The department of [human] healthcare services on persons exempt pursuant to section 346-152 to be eligible to provide child care and receive child care subsidies as provided by section 346-152.5;

    (12)  The department of [health] healthcare services on operators and employees of home and community-based case management agencies and operators and other adults, except for adults in care, residing in community care foster family homes as provided by section 321-15.2;

    (13)  The department of [human] healthcare services on staff members of the Hawaii youth correctional facility as provided by section 352-5.5;

    (14)  The department of [human] healthcare services on employees, prospective employees, and volunteers of contracted providers and subcontractors in positions that place them in close proximity to youth when providing services on behalf of the office or the Hawaii youth correctional facility as provided by section 352D‑4.3;

    (15)  The judiciary on employees and applicants at detention and shelter facilities as provided by section 571-34;

    (16)  The department of corrections and rehabilitation on employees and prospective employees, volunteers, contract service providers, and subcontract service providers who are directly involved with the treatment and care of, or directly involved in providing correctional programs and services to, persons committed to a correctional facility, or placed in close proximity to persons committed when providing services on behalf of the department or the correctional facility, as provided by section 353-1.5 and the department of law enforcement on employees and prospective employees whose duties involve or may involve the exercise of police powers including the power of arrest as provided by section 353C-5;

    (17)  The board of private detectives and guards on applicants for private detective or private guard licensure as provided by section 463-9;

    (18)  Private schools and designated organizations on employees and prospective employees who may be in positions that necessitate close proximity to children; provided that private schools and designated organizations receive only indications of the states from which the national criminal history record information was provided pursuant to section 302C-1;

    (19)  The public library system on employees and prospective employees whose positions place them in close proximity to children as provided by section 302A‑601.5;

    (20)  The State or any of its branches, political subdivisions, or agencies on applicants and employees holding a position that has the same type of contact with children, vulnerable adults, or persons committed to a correctional facility as other public employees who hold positions that are authorized by law to require criminal history record checks as a condition of employment as provided by section 78-2.7;

    (21)  The department of [health] healthcare services on licensed adult day care center operators, employees, new employees, subcontracted service providers and their employees, and adult volunteers as provided by section 321-15.2;

    (22)  The department of [human] healthcare services on purchase of service contracted and subcontracted service providers and their employees and volunteers, as provided by sections 346-2.5 and 346-97;

    (23)  The department of [human] healthcare services on foster grandparent program, senior companion program, and respite companion program participants as provided by section 346-97;

    (24)  The department of [human] healthcare services on contracted and subcontracted service providers and their current and prospective employees that provide home and community-based services under section 1915(c) of the Social Security Act, title 42 United States Code section 1396n(c), or under any other applicable section or sections of the Social Security Act for the purposes of providing home and community‑based services, as provided by section 346‑97;

    (25)  The department of commerce and consumer affairs on proposed directors and executive officers of a bank, savings bank, savings and loan association, trust company, and depository financial services loan company as provided by section 412:3-201;

    (26)  The department of commerce and consumer affairs on proposed directors and executive officers of a nondepository financial services loan company as provided by section 412:3-301;

    (27)  The department of commerce and consumer affairs on the original chartering applicants and proposed executive officers of a credit union as provided by section 412:10-103;

    (28)  The department of commerce and consumer affairs on:

          (A)  Each principal of every non-corporate applicant for a money transmitter license;

          (B)  Each person who upon approval of an application by a corporate applicant for a money transmitter license will be a principal of the licensee; and

          (C)  Each person who upon approval of an application requesting approval of a proposed change in control of licensee will be a principal of the licensee,

          as provided by sections 489D-9 and 489D-15;

    (29)  The department of commerce and consumer affairs on applicants for licensure and persons licensed under title 24;

    (30)  The Hawaii health systems corporation on:

          (A)  Employees;

          (B)  Applicants seeking employment;

          (C)  Current or prospective members of the corporation board or regional system board; or

          (D)  Current or prospective volunteers, providers, or contractors,

          in any of the corporation's health facilities as provided by section 323F-5.5;

    (31)  The department of commerce and consumer affairs on:

          (A)  An applicant for a mortgage loan originator license, or license renewal; and

          (B)  Each control person, executive officer, director, general partner, and managing member of an applicant for a mortgage loan originator company license or license renewal,

          as provided by chapter 454F;

    (32)  The state public charter school commission or public charter schools on employees, teacher trainees, prospective employees, and prospective teacher trainees in any public charter school for any position that places them in close proximity to children, as provided in section 302D-33;

    (33)  The counties on prospective employees who work with children, vulnerable adults, or senior citizens in community-based programs;

    (34)  The counties on prospective employees for fire department positions that involve contact with children or vulnerable adults;

    (35)  The counties on prospective employees for emergency medical services positions that involve contact with children or vulnerable adults;

    (36)  The counties on prospective employees for emergency management positions and community volunteers whose responsibilities involve planning and executing homeland security measures including viewing, handling, and engaging in law enforcement or classified meetings and assisting vulnerable citizens during emergencies or crises;

    (37)  The State and counties on employees, prospective employees, volunteers, and contractors whose position responsibilities require unescorted access to secured areas and equipment related to a traffic management center;

    (38)  The State and counties on employees and prospective employees whose positions involve the handling or use of firearms for other than law enforcement purposes;

    (39)  The State and counties on current and prospective systems analysts and others involved in an agency's information technology operation whose position responsibilities provide them with access to proprietary, confidential, or sensitive information;

    (40)  The department of commerce and consumer affairs on:

          (A)  Applicants for real estate appraiser licensure or certification as provided by chapter 466K;

          (B)  Each person who owns more than ten per cent of an appraisal management company who is applying for registration as an appraisal management company, as provided by section 466M-7; and

          (C)  Each of the controlling persons of an applicant for registration as an appraisal management company, as provided by section 466M-7;

    (41)  The department of community health or its designee on:

          (A)  Individual applicants or individuals acting on behalf of applying entities for hemp processor permits as provided under section 328G-2; and

          (B)  All license applicants, licensees, employees, contractors, and prospective employees of medical cannabis dispensaries, and individuals permitted to enter and remain in medical cannabis dispensary facilities as provided under sections 329D‑15(a)(4) and 329D-16(a)(3);

    (42)  The department of commerce and consumer affairs on applicants for nurse licensure or license renewal, reactivation, or restoration as provided by sections 457-7, 457-8, 457-8.5, and 457-9;

    (43)  The county police departments on applicants for permits to acquire firearms pursuant to section 134-2, on individuals registering their firearms pursuant to section 134-3, and on applicants for new or renewed licenses to carry a pistol or revolver and ammunition pursuant to section 134-9;

    (44)  The department of commerce and consumer affairs on:

          (A)  Each of the controlling persons of the applicant for licensure as an escrow depository, and each of the officers, directors, and principals who will be in charge of the escrow depository's activities upon licensure; and

          (B)  Each of the controlling persons of an applicant for proposed change in control of an escrow depository licensee, and each of the officers, directors, and principals who will be in charge of the licensee's activities upon approval of the application,

          as provided by chapter 449;

    (45)  The department of taxation on current or prospective employees or contractors who have access to federal tax information in order to comply with requirements of federal law, regulation, or procedure, as provided by section 231-1.6;

    (46)  The department of labor and industrial relations on current or prospective employees or contractors who have access to federal tax information in order to comply with requirements of federal law, regulation, or procedure, as provided by section 383-110;

    (47)  The department of [human] healthcare services on current or prospective employees or contractors who have access to federal tax information in order to comply with requirements of federal law, regulation, or procedure, and on current or prospective employees, volunteers, contractors, or contractors' employees or volunteers, subcontractors, or subcontractors' employees or volunteers, whose position places or would place them in close proximity to minors, young adults, or vulnerable adults, as provided by section 346-2.5;

    (48)  The child support enforcement agency on current or prospective employees, or contractors who have access to federal tax information in order to comply with federal law, regulation, or procedure, as provided by section 576D-11.5;

    (49)  The department of the attorney general on current or prospective employees or employees or agents of contractors who have access to federal tax information to comply with requirements of federal law, regulation, or procedure, as provided by section 28‑17;

    (50)  The department of commerce and consumer affairs on each control person, executive officer, director, general partner, and managing member of an installment loan licensee, or an applicant for an installment loan license, as provided in chapter 480J;

    (51)  The university of Hawaii on current and prospective employees and contractors whose duties include ensuring the security of campus facilities and persons; and

    (52)  Any other organization, entity, or the State, its branches, political subdivisions, or agencies as may be authorized by state law."

     SECTION 60.  Sections 302A-493, 321-1.8, 321-1.9, 321-11.2, 321-11.8, 321-15.2, 321-15.6, 321-15.61, 321-15.62, 321-15.63, 321-15.9, 321-482, 321-483, 329-4, and 329-104, Hawaii Revised Statutes, are amended by substituting the term "section 321-11" wherever the term "section 321-11(10)" or "section 321-11(12)" appears, as the context requires.

PART X

     SECTION 61.  The purpose of this part is to specify certain administrative matters that apply to the Act as a whole.

     SECTION 62.  (a)  The office of the attorney general shall identify all administrative rules, accounts, special funds, and other legal provisions that require amendment to:

     (1)  Rename the department of health as the department of community health;

     (2)  Rename the department of human services as the department of healthcare services;

     (3)  Transfer from the department of community health to the department of healthcare services and the department of environmental protection the responsibilities specified in this Act;

     (4)  Transfer from the department of healthcare services to the department of community health the responsibilities specified in this Act; and

     (5)  Administratively attach the Hawaii employer-union health benefits trust fund to the department of healthcare services.

     (b)  The office of the attorney general shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2026.

     SECTION 63.  (a)  All employees who occupy civil service positions and whose functions are transferred by this Act shall retain their civil service status, whether permanent or temporary.  Employees shall be transferred without any loss of salary; seniority (except as prescribed by applicable collective bargaining agreements); retention points; prior service credit; any vacation and sick leave credits previously earned; and other rights, benefits, and privileges, in accordance with state personnel laws and this Act; provided that the employees possess the minimum qualifications and public employment requirements for the class or position to which transferred or appointed; provided further that subsequent changes in status may be made pursuant to applicable civil service and compensation laws.

     (b)  Any employee who, prior to this Act, is exempt from civil service and is transferred as a consequence of this Act may retain the employee's exempt status, but shall not be appointed to a civil service position as a consequence of this Act.  An exempt employee who is transferred by this Act shall not suffer any loss of prior service credit, vacation or sick leave credits previously earned, or other employee benefits or privileges as a consequence of this Act; provided that the employees possess legal and public employment requirements for the position to which transferred or appointed; provided further that subsequent changes in status may be made pursuant to applicable employment and compensation laws.  The director of environmental protection may prescribe the duties and qualifications of these employees and fix their salaries without regard to chapter 76, Hawaii Revised Statutes.

PART XI

     SECTION 64.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 65.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 66.  This Act shall take effect upon its approval; provided that the amendments made to section 846-2.7(b), Hawaii Revised Statutes, by section 59 of this Act shall not be repealed when that section is reenacted on July 1, 2027, pursuant to section 4 of Act 110, Session Laws of Hawaii 2024.

 

INTRODUCED BY:	_____________________________

 

 

 

Report Title:

DOH; DHS; EUTF; Environment; Community Health; Healthcare Services

 

Description:

Establishes the Department of Environmental Protection.  Renames the Department of Health as the Department of Community Health.  Renames the Department of Human Services as the Department of Healthcare Services.  Administratively attaches the Hawaii Employer-Union Health Benefits Trust Fund to the Department of Healthcare Services.  Transfers certain responsibilities between departments.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.