Hawaii State Senate State Senate Hawaii State Senate Hawaii State Senate Hawaii State Senate Hawaii State Senate Hawaii State Senate Hawaii State Senate Hawaii State Senate 2008 Hawaii State Senate Hawaii State Senate Legislative Hawaii State Senate Hawaii State Senate Accomplishments Hawaii State Senate

Hawaii State Senate

Hawaii State Senate Hawaii State Senate Hawaii State Senate Hawaii State Senate Hawaii State Senate Hawaii State Senate Hawaii State Senate Hawaii State Senate Hawaii State Senate Hawaii State Senate Hawaii State Senate 2008 Regular Session Hawaii State Senate Senate Majority Office Hawaii State Senate Hawaii State Senate Hawaii State Senate

FOREWORD

This publication, prepared by the Senate Majority Research Office with the assistance of the staff of the Senate Committee on Ways and Means, provides an overview of the accomplishments of the Twenty-Fourth Legislature of the State of Hawaii during the recently completed Regular Session of 2008.

This edition consists of:

(1) The "Table of Contents" is a list of the measures as they appear in the publication. Arranged by Committee with measures categorized by broad topics and descriptive headings, it provides a convenient topical finding aid.

(2) The "Digest" section is composed of a brief narrative description that includes the highlights of each Senate Committee and a summary review of the bills passed and concurrent resolutions adopted by both houses of the Legislature and resolutions adopted by the Senate. The bill digests were prepared in part from digests supplied by the Legislative Reference Bureau Systems Office. The measures are categorized by the Senate Standing Committee of first referral. Where applicable, Act numbers, vetoes, and veto overrides as of May 28, 2008, have been inserted.

(3) The "Executive Budget Summary" was provided by the Senate Ways and Means Committee staff and highlights key funding and staffing differences between the Governor's budget request and what the Legislature enacted as the Executive Supplemental Budget (H. B. No. 2500, H.D. 1, S.D. 1, C.D. 1).

(4) The "List of Measures Passed" section is a listing of all measures on which official final action was taken by the Legislature. The listing includes all bills and concurrent resolutions passed by both houses as well as resolutions adopted by the Senate, and includes the draft numbers as well as a short descriptive title for each measure. The measures are listed in numerical order by Committee of first referral.

Additional information on selected measures that passed the Legislature can be found in the 2008 Legislative Action Briefs, which are also created and distributed by our office.

The Legislative Accomplishments publication is intended primarily as a desk reference for quick access to summary information concerning bills and concurrent resolutions approved by the Legislature and resolutions adopted by the Senate. Users should refer to the actual measures and accompanying committee reports for details on the measures. A copy of this publication can also be found online at http://www.capitol.hawaii.gov/senmaj/accomp/ 2008-accomplishments.pdf.

The Senate Majority Research Office May 2008

Foreword i

ii Foreword TABLE OF CONTENTS

FOREWORD...... i

AGRICULTURE AND HAWAIIAN AFFAIRS...... 1

Highlights of Accomplishments of the Senate Committee on Agriculture and Hawaiian Affairs...... 1

Bills Passed

AGRIBUSINESS DEVELOPMENT CORPORATION Agribusiness Development Corporation; Qualifications of Board of Directors and Preparation of Strategic Plan ...... 3 Authority of Agribusiness Development Corporation; Acquisition of Galbraith Estate Lands ...... 3

AGRICULTURAL AND AQUACULTURAL LOANS Agricultural and Aquacultural Loans; Sustainability Projects ...... 3 Increased Agriculture Loan Ceiling Under the Hawaiian Homes Commission Act ...... 4

HAWAIIAN AFFAIRS Makahiki Commemoration Day...... 4 Making Taro the State Plant...... 4

IMPORTANT AGRICULTURAL LANDS Important Agricultural Lands ...... 4

INVASIVE SPECIES/BIOSECURITY Department of Agriculture; Biosecurity Program ...... 5 Designation of Restricted Plants and Prohibition on Sale of Noxious Weeds...... 5 Inspection, Quarantine, and Eradication Service Fee ...... 5 Taro Security and Purity Task Force...... 5

LAND USE Agricultural Business Within Enterprise Zones...... 6 Agricultural-Energy Facilities ...... 6 Boundary Amendments for Lands Contiguous or Adjacent to Agricultural Lands ...... 6 Solar Energy Facilities in Agricultural District...... 7

WATER Agricultural Water Security...... 7 Preferential Agricultural Water Rates ...... 7

OTHER ISSUES Cruelty to Equine Animals ...... 7 Hawaii-Produced Milk...... 7 Honey as an Agricultural Commodity...... 7 Lease of Animal Quarantine Facilities...... 7

Resolution(s) Adopted

HAWAIIAN AFFAIRS Signs at the State Capitol ...... 8 Office of Hawaiian Affairs; Televised Meetings ...... 8 Queen Liliu‘okalani's Birthday...... 8

IMPORTANT AGRICULTURAL LANDS Important Agricultural Lands; Galbraith Estate Lands...... 8

Table of Contents iii INVASIVE SPECIES/BIOSECURITY Invasive Species; State Inspection Programs ...... 9

OTHER ISSUES Geographically Disadvantaged Farmers; Federal Legislation ...... 9 Hawaiian Cacao Task Force ...... 9

COMMERCE, CONSUMER PROTECTION AND AFFORDABLE HOUSING ...... 11

Highlights of Accomplishments of the Senate Committee on Commerce, Consumer Protection and Affordable Housing...... 11

Bills Passed

I. Affordable Housing

Affordable Housing; For-Sale Multi-Family Condominium Developments; Exemptions ...... 13 Affordable Housing; Hula Mae Multifamily Revenue Bond Authorization...... 13

II. Business Regulation and Financial Institutions

Automated Teller Machines; Transaction Fees...... 13 Business Registration; Corporate Dissolution; Effect of Expiration ...... 13 Business Registration; Trade Names; Registration; Enforcement...... 14 Code of Financial Institutions; Updates; Housekeeping Amendments ...... 14 Financial Institutions; Name or Trademark Fraud ...... 15 Money Transmitters; Housekeeping Amendments; Fee Structures...... 15 Uniform Unclaimed Property Act; Updates and Amendments ...... 16 Volume 11, Hawaii Revised Statutes; Trade Regulation and Practice; Uniform Commercial Code...... 16

III. Consumer Protection

Dispensing Opticians; Licensure; Non-Corrective Contact Lenses ...... 16 Hawaii Medical Board; Name Change ...... 16 Liquor Licenses; Wineries...... 16 Mixed Martial Arts; Fee Structure ...... 16 Mortgage Foreclosures; Mortgage Rescue Fraud Prevention Act; Consumer Protections; Distressed Property Consultant...... 17 Non-Judicial Mortgage Foreclosures; Access to Information ...... 17 Notary Public; Notarized Documents; Fraud Prevention ...... 17 Pseudoephedrine Sales; Electronic Sales Log; Narcotics Enforcement; Penalties ...... 18 Reduced Ignition Propensity Cigarettes; Cigarette Sales; State Fire Council ...... 18 Scrap Dealers; Prohibitions and Penalties...... 19 Scrap Dealers and Recyclers; Copper Purchases; Payment by Check; Penalties...... 19 Scrap Metal; Beer Kegs; Penalties ...... 19

IV. Condominiums and Planned Communities

Condominiums; Certificate of Deposit Account Registry Service Network; Condominium Association Funds ...... 19 Condominiums; Condominium Associations; Special Meetings...... 19 Condominiums; Housekeeping Amendments...... 19 Condominiums; Mediation; Arbitration; Administrative Hearing ...... 19 Planned Communities; Restatement of Planned Community Association Documents; Amendments to Planned Community Association Documents...... 20 Planned Community Associations; Board of Directors Meeting Minutes; Disclosure Statements ...... 20

iv Table of Contents V. Insurance

Insurance; Insurance Investment; Investment Pools ...... 20 Insurance; Special Purpose Financial Captive Insurance Companies; Sponsored Captive Insurance Companies...... 20 Life Insurance; National Association of Insurance Commissioners; Employee Group Life Insurance Policies...... 21 Life Settlements Model Act; Stranger-Originated Life Insurance; National Conference of Insurance Legislators ...... 21

VI. Public Utility Regulation

Public Utilities; Property Transfers; Public Utilities Commission; Approval Exemption ...... 22

VII. Sustainability

Sustainability; Hawaii 2050 Sustainability Plan; University of Hawaii at Manoa's Public Policy Center; Report...... 22

VIII. Time Shares

Time Share Plans; Limited Permit; Offer or Sale of Time Share Interests ...... 23 Uniform Land Sales Practices Act; Time Shares; Exemption...... 23

Resolution(s) Adopted

Affordable Housing; Leasehold Conversion; Auditor; Study...... 23 Industrial Hygiene, Safety, and Health Physics Professions; Sunrise Review; Auditor; Report...... 23

ECONOMIC DEVELOPMENT AND TAXATION...... 25

Highlights of Accomplishments of the Senate Committee on Economic Development and Taxation ...... 25

Bills Passed

I. Culture and Arts

Filipino-American History Month; Designated...... 26 Hawaiian Monk Seal; State Mammal...... 26 Iolani Palace; Receipt of Funds...... 26 Museum of Hawaiian Music and Dance; Committee Extension...... 26

II. Historic Preservation

Archaeological Data Survey ...... 27 Historic Preservation; Historic Buildings; Photographs ...... 27 State Historic Preservation Officer; Qualifications ...... 27

III. Identity Theft Projection

Harassment by Impersonation...... 27 Personal Information; Identity Theft Protection...... 27

IV. Small Businesses

Hawaii Community Development Authority; Kakaako Small Business Representatives ...... 29 Small Business; Rights; Administrative Rules Impact ...... 29

Table of Contents v V. Taxation

Conforming Hawaii Income Tax Law to the Internal Revenue Code...... 29 General Excise Tax; Service-to-Service Wholesale Transactions; Warranty Obligations ...... 29 Income Taxation; Mandatory Income Tax Credit ...... 29 Integrated Tax Services and Management Special Fund; Established; Uses of and Expenses for the Integrated Tax Services and Management Special Fund; Appropriation; Performance-based Contracts; Annual Reporting Requirement; General Fund Repayment; Electronic Filing Requirement ...... 29

VI. Miscellaneous

Aloha Stadium; Authority Members...... 30 Aloha Stadium; Emergency Appropriation...... 30 Commercial Activities on Ocean Waters...... 30

Resolution(s) Adopted

I. Economic Development

Auditor; Department of Business, Economic Development, and Tourism; Audit ...... 31 Auditor; Natural Energy Laboratory of Hawaii; Audit ...... 31 International Interfaith Conference; All Believers Network...... 31 State Foundation on Culture and the Arts ...... 31 Tartan Day in Hawaii; Designation...... 32 University of Hawaii; Degree Programs for Sports and Entertainment Management ...... 32

II. Taxation

General Excise Tax; Commissions on Imported Tangible Personal Property...... 32 Taxation; Tax Credits and Exemptions...... 32

EDUCATION...... 33

Highlights of Accomplishments of the Senate Committee on Education ...... 33

Bills Passed

I. Lower Education

FACILITIES DOE; School Facilities; Facilities Alignment Commission ...... 34

PROGRAMS AND SERVICES DOE; After-School Plus Program Revolving Fund...... 34 DOE; DHS; Early Childhood Education...... 34 DOE; Online Learning Task Force ...... 35 DOE; SPED; Due Process; Hearings...... 35 DOE; SPED; Power of Attorney...... 35 DOE; UH; Students; Workers' Compensation ...... 35

SPECIAL PURPOSE REVENUE BONDS Island Pacific Academy; SPRBs ...... 36 Maui Preparatory Academy; SPRB ...... 36

TEACHERS BOE; Substitute Teachers; Wage Adjustments ...... 36 DOE; Emergency Hires; Teacher Licensure Requirements ...... 36 DOE Employees; Probationary Period...... 36 vi Table of Contents HTSB; Membership; Powers and Duties ...... 36 HTSB; Teacher Licensure; Sexual Offenses ...... 37 Teacher Recruitment and Retention; Appropriation...... 37

II. Higher Education

UH; Board of Regents; Candidate Advisory Council ...... 37 UH; Board of Regents; Disclosure ...... 37 UH; Budgeting ...... 38 UH; Commercial Enterprises Revolving Fund ...... 38 UH; Global Youth Center...... 38 UH; Institute of Marine Biology; Appropriation ...... 38 UH; Preaudit of Payments...... 38

Resolution(s) Adopted

I. Lower Education

BOE; DOE; School Buses; Seat Belts...... 39 DOE; DOH; Anger Management Program; Study...... 39 DOE; DOH; Procurement ...... 39 DOE; Extended School Year or School Hours; Study...... 39 DOE; Highly Qualified Teachers; Curricular Materials ...... 39 DOE; Kapaa Library; Relocation ...... 40 DOE; Kihei High School; Financing Agreement ...... 40 DOE; Model Pilot Complex...... 40 DOE; Office of Human Resources; Advisory Group ...... 40 DOE; Pahoa High and Intermediate School; Helene H. Hale...... 40 DOE; Project Graduation ...... 40 DOE; Shaded Play Areas ...... 41 DOE; Truancy Rate Reduction; Working Group...... 41 DOE; Vegetarian/Vegan School Lunches...... 41

II. Higher Education

UH; Applied Archaeology; DLNR; Archaeology Working Group...... 41 UH; Cancer Research Center of Hawaii ...... 42 UH; College of Social Sciences; Funding Utilization/Student Achievement; Working Group...... 42 UH; CTAHR; Multipurpose, Multi-user Processing Facility; Study...... 42 UH; Hawaii Agriculture Diagnostic Center; Survey...... 42 UH; High Technology Development Center...... 42 UH Hilo; CAFNRM; Kulani Correctional Facility Programs; Study ...... 43 UH; JABSOM; Physician Shortage; Study...... 43 UH; Philippine Language Courses...... 43 UH; Rehabilitative and Related Services; Graduate Loan Program ...... 43 UH; Revenue Maximization ...... 43 UH; School of Public Health...... 43 UH; School of Social Work; Myron Thompson...... 44

III. Miscellaneous

HTSB; Accountability Structure...... 44

ENERGY AND ENVIRONMENT...... 45

Highlights of Accomplishments of the Senate Committee on Energy and Environment ...... 45

Table of Contents vii Bills Passed

I. Energy

Definition of "Renewable Energy Producer"...... 46 Net Energy Metering Statute; Net Energy Metering Component ...... 46 Renewable Energy Facilitator Position; Energy Security Special Fund...... 46 Renewable Energy Facility Siting Process...... 47 Solar Energy Water Heating Requirement; Residential Tax Credit Modification...... 47

II. Environment

Director of Transportation; Regulation of Harbor Noise...... 48 Electronic Waste Recycling Act...... 48 Greenhouse Gas Emissions Reduction Task Force Program Manager and Project Assistant/Researcher Positions...... 48 Jurisdiction Over Environmental Assessments ...... 49 Preventing Bans and Unreasonable Restrictions on Clotheslines ...... 49 Public School Food Waste Recycling Pilot Project...... 49 Repeal of the Energy Resources Public-Private Advisory Committee ...... 49 Systematic Approach to Control Coqui Frog Infestations ...... 49

III. Special Purpose Revenue Bonds

H2 Technologies Incorporated; Hydrogen Generation; Automobile Fuel Conversion Garage; Special Purpose Revenue Bonds...... 50 Hui Mana ‘Oma‘o; SPRBs ...... 50 Jacoby Development, Inc. - Geoplasma LLC; Plasma Municipal Solid Waste Processing System; Special Purpose Revenue Bonds...... 50 Oceanlinx Hawaii LLC; Ocean Wave Energy; Special Purpose Revenue Bonds...... 50 Sopogy, Inc; Solar Farm; Special Purpose Revenue Bonds ...... 50

IV. Other Issues

Electronic Permitting Fees; Department of Health; Environmental Programs ...... 50 Energy-Efficiency and Demand-Side Management Programs and Services; Public Benefits Fee ...... 50 Establishment of Ratepayer-Funded Photovoltaic Rebate Program ...... 51 Natural Energy Laboratory of Hawaii Authority Decision Making Authority; Structure of the Board of Directors...... 51

Resolution(s) Adopted

Global Warming Task Force...... 52 Supporting Federal Tax Incentives; Encouraging use of Renewable Energy Sources ...... 52 Voluntary Polystyrene Foam Alternative Products Use Program ...... 52

HEALTH...... 53

Highlights of Accomplishments of the Senate Committee on Health ...... 53

Bills Passed

I. Health Care Facilities

Cancer Research Special Fund ...... 54 Disproportionate Share Hospital Allowance; Appropriation ...... 54 Emergency Appropriation; Hawaii Health Systems Corporation...... 54 Maui Memorial Medical Center; Revenue Bonds; Heart, Brain, Vascular Center; Appropriation...... 54 Public Health; Federally Qualified Health Centers; Appropriation...... 54 viii Table of Contents Special Purpose Revenue Bonds; Castle Medical Center...... 54 Trauma System Special Fund; Surcharges...... 54

II. Health Insurance

Group Health Insurers; Small Business ...... 55 Health Care Coverage Assistance; Children's Health Care...... 55 Insurance; Unfair Practices; Exception for Small Insurers...... 55 Task Force; Health Coverage; Autism Spectrum Disorders...... 55

III. Health Care Professionals

Acupuncturists; Examination and Licensure ...... 55 Dentistry; Interference with Practice ...... 56 Emergency Appropriation for Emergency Medical Services...... 56 Epidemiologists ...... 56 Genetic Counselors; Licensure...... 56 Hawaii Health Corps Program Working Group ...... 56 Nursing; University of Hawaii; Advisory Board...... 56 Osteopathy...... 56 Registered Nurses; Licensure...... 56 Regulation of Licensed Mental Health Counselors; Sunset; Repealed; Reimbursable Practitioners...... 57

IV. Mental Health

Defendant Records; Department of Health; State Hospital; Custody...... 57 Emergency Appropriation for the Adult Mental Health Division...... 57 Mental Health Facilities; Hawaii State Hospital; Forensic Patients ...... 57 Mental Health Records; Confidentiality; Exceptions...... 57

V. Prescriptive Medications

Controlled Substances...... 58 I-SaveRx Prescription Drug Program ...... 58 Remote Dispensing Pharmacy; Medication ...... 58

VI. Cancer Research and Awareness

Cancer Surveillance and Research; Data Collection...... 58 Cervical and Breast Cancer Screening; Transfer of Funds ...... 58

VII. Organ Donation

Anatomical Gifts...... 59 Organ Donor Registry...... 59

VIII. Other Issues

Emergency Planning and Community Right-To-Know Act...... 59 Medical Marijuana; Task Force ...... 60

Resolution(s) Adopted

I. Health Care Workforce

Center for Nursing; Supply...... 60 Requesting the Auditor to Study the Impact of Act 226, Session Laws of Hawaii 2007 ...... 60

Table of Contents ix II. Health Care Facilities and Technology

Health; Telemedicine ...... 60 Maui Health Initiatives Task Force; Tax Recommendations; Study ...... 62 Medical Surveillance System; Mandatory Insurance Coverage ...... 62

III. Residential and Long-Term Care

Adult Residential Care Homes; Community Care Foster Family Homes; Department of Health and Department of Human Services Standardized Policy ...... 62 ARCH Operators; DHS; DOH...... 62 Long-term Care; Waitlisted Patients ...... 63

IV. Medical Services and Assistance

Auditor; Sunrise Review; Health Insurance; Autism ...... 63 Shaken Baby Syndrome; Prevention ...... 63 Study; Cervical Cancer Immunization ...... 63 Tuberculosis (TB) Screening and Treatment; Public Housing ...... 63

V. Environmental Health

Toxic Consumer Products; Phthalates; Bisphenol-A; Child Safety ...... 64

VI. Other Issues

Designating the Month of September as "Brain Aneurysm Awareness Month" in Hawaii ...... 64 Divided We Fail Campaign...... 64 Kalaupapa; Acknowledgment and Apology ...... 64 Ovarian Cancer; Awareness of Common Symptoms ...... 64

HUMAN SERVICES AND PUBLIC HOUSING ...... 65

Highlights of Accomplishments of the Senate Committee on Human Services and Public Housing ...... 65

Bills Passed

I. Adult Protection and Elder Affairs

Adult Protective Services...... 67 Criminal History Background Checks; Social Services Programs ...... 68 Policy Advisory Board for Elder Affairs; Issuance of Policy ...... 68

II. Asset Building

Economic Self-Sufficiency Standard ...... 68 Taxation; Refunds; Electronic Deposit ...... 68

III. Care Giving and Long-Term Care

Caregivers; Caregiver Recognition Day...... 69 Family Caregivers; Paid Family Leave; Working Group...... 69 Joint Legislative Committee on Family Caregiving; Appropriations ...... 69 Long-Term Care; Medicaid; Transfer of Funds; Federal Approval...... 69 Social Services; Long Term Care Commission; Appropriation...... 70

IV. Children and Families

Child Protection Act; Placement Preference ...... 70 x Table of Contents Children; Children of Incarcerated Parents; Guiding Principles ...... 70 Endangering Welfare of a Minor; Controlled Substances ...... 70 Family Court; Custody...... 71 Family Law; Child Custody Evaluators...... 71 Former Foster Youth; Higher Education Board Allowance...... 71 Foster Children; Guiding Principles ...... 71 Motor Vehicles; Unattended Children ...... 71 Prisoners; Children; Incarcerated Parents; Task Force...... 72

V. Health Care

Disproportionate Share Hospital Allowance; Appropriation ...... 72 Post-Partum and Interconception Care; QUEST...... 72

VI. Public Assistance Programs

Bridge to Hope Program; TANF...... 72 Hawaii Disability Rights Center; Audit...... 72 Language Access; Definitions; Language Access Advisory Council...... 72 Temporary Assistance for Needy Families ...... 72

VII. Public Housing

Emergency Appropriation; Hawaii Public Housing Authority ...... 73 Housing; Affordability ...... 73 Public Housing Project; Intoxicating Liquor ...... 73 Rental Assistance; Housing...... 73

VIII. Vocational Rehabilitation

Civil Service Law; Qualified Community Rehabilitation Programs ...... 73

Resolution(s) Adopted

I. Asset Building

Public Financial Education and Asset Building Task Force ...... 74

II. Children and Families

Shelter Admission; Youth Services; Department of Human Services; Study ...... 74 Shifting the Year of the Family Celebration from 2008 to 2009 ...... 74 Task Force; Protocols; First Response; Child Protective Services ...... 74

III. Domestic Violence

Domestic Violence; Purple Ribbon and Purple Arm Band Campaign...... 75

IV. Emergency Preparedness and Special Needs

Condominiums; Emergency Preparedness...... 75 Natural Disaster Preparedness Training for At-Risk Communities ...... 75 State Building Code; Assisted Living Facilities ...... 75

V. Health Care

Department of Human Services; Medicaid; Audit...... 76 Leahi Hospital; Long-Term Care; Health; Task Force...... 76

VI. Public Housing

Kukui Gardens; Mayor Wright Homes; Master Plan...... 76

Table of Contents xi Public Housing Tenants; Transition into Permanent Housing...... 76

VII. Residential Care Homes

William S. Richardson School of Law; Adult Care Homes ...... 76

VIII. Vocational Rehabilitation

Financial Audit; Hawaii Centers for Independent Living...... 77 LRB Study on State Deaf and Hard of Hearing Facility...... 77

IX. Other Issues

National Monument for Women ...... 77

INTERGOVERNMENTAL AND MILITARY AFFAIRS...... 79

Highlights of Accomplishments of the Senate Committee on Intergovernmental and Military Affairs...... 79

Bills Passed

I. Intergovernmental Affairs

Jurisdiction of Circuit Courts; Impeachment Proceedings Against County Officers...... 81 Land Use Commission; District Boundary Declassification; County General Plan; Community and Development Plans ...... 81 Neighborhood Board Meetings; Legal Requirements...... 81 Public Land Liability; Public Beach Parks ...... 81 State Fire Code; State Building Code ...... 81

II. Military Affairs

Civil Defense Disaster Relief ...... 81

Resolution(s) Adopted

I. Intergovernmental Affairs

Federal Financial Assistance for Persons in the United States Under the Compacts of Free Association...... 82 Fire Safety; Smoke Detectors in Every Home by 2010...... 82

II. Military Affairs

Educational Benefits for Hawaii Guard Service Members; Eligibility ...... 82 Invasive Plant Species and Excessive Foliage; Waipahu Coastline; U.S. Navy Clean- up...... 82 State Civil Defense's Lualualei's Emergency Shelter for Civilians...... 82 United States Navy; F-14 Tomcat's United States Postal Service First Class Commemorative Stamp ...... 83

xii Table of Contents JUDICIARY AND LABOR...... 85

Highlights of Accomplishments of the Senate Committee on Judiciary and Labor ...... 85

Bills Passed

I. Judiciary

CIVIL LAW Bail Agents; Sureties; Regulation ...... 91 Charitable Trusts and Nonprofit Organizations; Registration; Financial Reports and Disclosure...... 91 Child Support Enforcement Agency; Duties ...... 93 Controlled Substances; Pain Patients Bill of Rights ...... 93 Evidence; Journalists and Newscasters; Compellable Testimony ...... 93 Firearm Owner; Liability; State or Counties...... 94 Intoxicating Liquor ...... 94 Police Officers; Representation by Counsel...... 94 Public Agency Meetings; On-Site Inspections ...... 94 Uniform Probate Code; Omnibus ...... 94

COURTS Administrative Director and Deputy Administrative Director of the Courts; Salaries...... 95 Child Support Enforcement; Court Orders; Civil Contempt of Court...... 95 Claims Against the State; Appropriations...... 95 District Court Jurisdiction ...... 96 Electronic Monitoring; Temporary Restraining Orders Conviction...... 96 Family Court; Court-Appointed Counsel; Guardians Ad Litem...... 96 Intermediate Appellate Court; Subpoenas; Oaths...... 96 Judicial History Center; Board ...... 96 Judiciary Supplemental Appropriations Act of 2008 ...... 96

CRIMES AND CRIMINAL PROCEDURE Animal Hoarding...... 97 Arrest Powers; United States Marshal or Deputy United States Marshal ...... 97 Arson; Penalty ...... 97 Controlled Substances; Forfeiture...... 98 Decriminalization of Minor Offenses ...... 98 Hawaii Anti-Trafficking Task Force...... 99 Human Trafficking; Offense; Penalties...... 99 Indecent Electronic Display to a Child; Electronic Enticement of a Child; Sex Offender Registration; Adam Walsh Act Compliance Working Group ...... 99 Penal Code; Multiple Terms of Imprisonment; Concurrent...... 102 Prostitution; Habitual Solicitation of Prostitution...... 102 Public Order; Urinating or Defecating in Public...... 102

ELECTIONS Campaign Contributions; Reciprocal Beneficiaries ...... 102 Campaign Spending; Public Funding; Hawaii County Council Elections ...... 103 Election of President by Popular Vote...... 104 Elections; Absentee Voting; Permanent Ballot ...... 105 Governor; Age Qualification for Election; Constitutional Amendment...... 105

OTHER ISSUES Deputy Attorney General; Pro Bono ...... 105 Governor's Emergency Powers; Disaster Relief...... 105 Social Security Number; Bureau of Conveyances; Land Court...... 105 Statutory Revision...... 105 Wireless Enhanced 911 Board; Proxy Voting; Composition ...... 106

Table of Contents xiii II. Labor

EMPLOYMENT SECURITY Unemployment Trust Fund; Reed Act Funds; Hawaii and Maui Appropriations; Workforce Development Plans ...... 106

PUBLIC EMPLOYMENT Deferred Compensation Plans; Investment Products...... 106 Employees' Retirement System; Furnishing of Information by State and Counties; Refunds of Overpayment of Retirement Benefits ...... 106 Employees' Retirement System; Membership of Elective Officer...... 107 Re-Employment of Retirees...... 108 Voluntary Employees' Beneficiary Association Trusts; Sunset Extension; Audits ...... 109

PUBLIC WORKS Governor's Emergency Powers; Suspension of Wages and Hours on Public Work Projects During Emergency ...... 109

WORKERS' COMPENSATION Workers' Compensation; IME Working Group ...... 109 Workers' Compensation; Independent Medical Examinations ...... 110 Workers' Compensation; Medical Treatment ...... 111 Workers' Compensation; Temporary Total Disability ...... 111

OTHER ISSUES Retired Patient Employees at Hansen's Disease Facilities; Pension Adjustment...... 112 Streamlining Union Certification...... 112

Resolution(s) Adopted

I. Judiciary

Constitutional Convention; LRB Cost Study...... 113

II. Labor

Conversion of Exempt Employees to Civil Service ...... 113 Hawaii Labor History Week...... 113 Language Access Month; Centralized Language Access Resource Center Feasibility Study...... 113

PUBLIC SAFETY...... 115

Highlights of Accomplishments of the Senate Committee on Public Safety...... 115

Bills Passed

I. Public Safety

Display Fireworks; Permits; Fees; Prohibitions; Minors...... 116 Uniform Controlled Substances Act; Controlled Substance Registration Revolving Fund; Depressants; Stimulants; Immediate Precursors; Sales Restriction ...... 116

II. Corrections

Application Fee for Interstate Transfer; Interstate Adult Offender Supervision Council Membership; Compact Administrator Term; Appointment of Coordinator Position ...... 117 Comprehensive Offender Reentry System Plan; Model Programs; Familial Relationship Research; Offender Training; Out-of-State Prison Transfers; Ex- Offender Reentry Services ...... 117 xiv Table of Contents Contracts with Out-of-State Detention Facilities; Freedom of Information; Disclosure of Personal Records ...... 117 Correctional Industries Program; Temporary Exempt Positions ...... 118 Correctional Program Revolving Fund...... 118 Paroling Authority Membership; Initial Appointments; Panel Recommendation ...... 118 Return of Female Prisoners; Mainland Prisons; Strategic Plan; Establishment; Appropriation...... 118

III. Sheriffs Division

Civil Service Positions; Deputy Sheriff; Academy Graduate Requirement...... 118

Resolution(s) Adopted

Deputy Sheriffs; Compensation...... 118 Early Parole Eligibility Programs; Study; Report...... 119 Sheriff Division; Headquarters Site ...... 119

TOURISM AND GOVERNMENT OPERATIONS ...... 121

Highlights of Accomplishments of the Senate Committee on Tourism and Government Operations...... 121

Bills Passed

DEPARTMENTS, BOARDS, AND COMMISSIONS Attorneys; Department of Taxation; Administrative Rules Officer or Rules Specialist ...... 123 Boards and Commissions; Direct Communication with Legislature...... 123 Employment of Attorneys by State Departments; Judiciary and Legislature Exemption; Procedures ...... 123

PROCUREMENT Procurement; Corrective Actions; Administrative Fine...... 124 Procurement; False Information in Bids or Solicitations; Sanctions...... 124 Procurement; Mandatory Procurement Training ...... 124 Procurement; Notice of Non-Selection and Ranking; Protest...... 124 Procurement; State Procurement Policy Board; Annual Audits...... 125

PUBLIC WORKS Public Works Projects; Contractors; Falsification of Records; Suspension...... 125

Resolution(s) Adopted

Aloha Tower Development Corporation; Auditor Study...... 125 Hawaii Tourism Authority; Water Safety and Recreational Hazards; Visitor Information ...... 125 Public Procurement; PEG Contracts...... 125

TRANSPORTATION AND INTERNATIONAL AFFAIRS ...... 127

Highlights of Accomplishments of the Senate Committee on Transportation and International Affairs ...... 127

Bills Passed

Transportation

AIRLINES Hawaii Interisland Airlines Regulation...... 128

Table of Contents xv DRIVER'S LICENSING Driver's License; U.S. Armed Forces; Expirations...... 128

DRIVING UNDER THE INFLUENCE Conditional License Permits; Additional Conditions ...... 129 Driving Under the Influence; Ignition Interlock Systems...... 129

HARBORS Harbors Modernization Projects; Hana Harbor Transfer...... 130 Harbors; Permit Portability ...... 130 Intra-County Ferry Service; Fuel Tax Exemption...... 130

HIGHWAYS Roads in Limbo; State and County Jurisdiction ...... 130 State Highway System; Emergency Appropriation...... 130 State Highways; County Subdivision Ordinances; Exemption...... 131 West Maui Transportation Access Plan ...... 131

PEDESTRIAN SAFETY Pedestrian Safety...... 131

VEHICLES Motor Vehicles; Inter-island Ferry ...... 131 Rental Motor Vehicles; Customer Facility Charge; Surcharge Tax...... 131 Three-Wheel Mopeds; Requirements and Exemptions...... 132 Towing Fees; Services...... 132

OTHER ISSUES Bikeways; Parking Prohibition...... 132

Resolution(s) Adopted

I. Transportation

Traffic; Roundabouts...... 132

II. Intergovernmental Affairs

Discrimination Against Women; Elimination ...... 132 Free Trade Agreement; Korea-United States ...... 132 Free Trade Agreement; Taiwan...... 132 Visa Waiver; Taiwan ...... 132 Visa Waiver; Taiwan; Visitors; Hawaii Exports...... 133

WATER AND LAND ...... 135

Highlights of Accomplishments of the Senate Committee on Water and Land...... 135

Bills Passed

I. Water

FISHING Commercial Marine Fishing Reports...... 136 Fishing Regulations ...... 137

OTHER ISSUES Removal of Grounded Vessels ...... 137

xvi Table of Contents II. Land

LAND ACQUISITION Acquisition of Turtle Bay Property...... 137

LAND CONSERVATION Ha‘iku Valley Cultural Preserve Commission ...... 138 Land Conservation Fund ...... 138 Land Conservation Incentives Tax Credit...... 138

LEASES State Park Recreation-Residence Use Leases...... 139

PENALTIES Civil Penalties for Violations on Public Lands...... 140 Penalties for Violations Within the Conservation District...... 140 Public Lands; Criminal Penalties...... 140

Resolution(s) Adopted

I. Water

FISHING Ornamental Reef Fish; Establishment of Rules and Fish Replenishment Areas ...... 141 Ornamental Reef Fish; South Maui and Kaneohe Bay ...... 141

OTHER ISSUES Voyaging Canoes; Permanent Port and Dock Facilities...... 141 World Ocean Day ...... 141

II. Land

CONSERVATION Hanapepe Salt Ponds Resource Management Plan ...... 141 Kawainui and Hamakua Marsh Complex ...... 142

HAWAII COMMUNITY DEVELOPMENT AUTHORITY Hawaii Community Development Authority; Kaka‘ako Draft Mauka Area Plan and Mauka Area Rules ...... 142

LEASES Kanoelehua Industrial Park Leases ...... 142

OTHER ISSUES Approval of a Land Exchange Between Tiana Partners and the Hawaiian Humane Society ...... 142 Authorizing the Issuance of a Non-Exclusive Easement; Submerged Lands at Lahaina, Maui; Lahaina Yacht Club ...... 142 Hawaii State Geological Survey...... 142 Overgrowth of Vegetation on Kahala Beach ...... 143

WAYS AND MEANS ...... 145

Highlights of Accomplishments of the Senate Committee on Ways and Means...... 145

Bills Passed

I. Administrative Matters

Armed Services; Tax Exemption ...... 146 Audit Recommendations; Implementation Requirements...... 146

Table of Contents xvii

II. Fiscal Matters

Emergency Appropriation; Electricity Costs...... 146 State Bonds; Authorization ...... 146

III. Legislative Matters

Legislative Appropriation ...... 146

EXECUTIVE BUDGET SUMMARY...... 147

OFFICE OF THE GOVERNOR...... 147 LIEUTENANT GOVERNOR ...... 148 AGRICULTURE ...... 149 ACCOUNTING AND GENERAL SERVICES ...... 150 ATTORNEY GENERAL...... 151 BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM...... 153 BUDGET AND FINANCE...... 155 COMMERCE AND CONSUMER AFFAIRS ...... 157 DEFENSE...... 158 EDUCATION...... 160 HAWAIIAN HOME LANDS ...... 162 HEALTH...... 163 HUMAN RESOURCES DEVELOPMENT ...... 165 HUMAN SERVICES...... 166 LABOR AND INDUSTRIAL RELATIONS...... 167 LAND AND NATURAL RESOURCES...... 168 PUBLIC SAFETY ...... 170 SUBSIDIES ...... 172 TAXATION ...... 173 TRANSPORTATION ...... 174 UNIVERSITY OF HAWAII ...... 176 JUDICIARY ...... 179

LIST OF MEASURES PASSED...... 181

AGRICULTURE AND HAWAIIAN AFFAIRS ...... 181 COMMERCE, CONSUMER PROTECTION AND AFFORDABLE HOUSING...... 182 ECONOMIC DEVELOPMENT AND TAXATION ...... 184 EDUCATION...... 185 ENERGY AND ENVIRONMENT ...... 187 HEALTH...... 188 HUMAN SERVICES AND PUBLIC HOUSING ...... 190 INTERGOVERNMENTAL AND MILITARY AFFAIRS ...... 192 JUDICIARY AND LABOR...... 193 PUBLIC SAFETY ...... 195 TOURISM AND GOVERNMENT OPERATIONS...... 196 TRANSPORTATION AND INTERNATIONAL AFFAIRS ...... 197 WATER AND LAND ...... 198 WAYS AND MEANS...... 199

xviii Table of Contents AGRICULTURE AND HAWAIIAN AFFAIRS

The Committee on Agriculture and Hawaiian Affairs includes those programs relating to agriculture and aquaculture, including mariculture; burial councils; and Hawaiian affairs, including the Office of Hawaiian Affairs, sovereignty, and Hawaiian home lands.

Highlights

IMPORTANT AGRICULTURAL LANDS

The Hawaii State Constitution recognizes the need to protect and preserve Hawaii's agricultural lands. For the past thirty years, the Legislature has been attempting to pass legislation which would trigger the designation and create incentives to protect and preserve important agricultural lands (IALs). This year the Legislature passed SB2646, SD2, HD2, CD1, which is landmark legislation that begins the three-year process of designating IALs as established in Act 183, Session Laws of Hawaii 2005, and creates important incentives for protecting and preserving these lands.

The purpose of this measure is to create a comprehensive set of incentives for the designation and sustainability of IALs. These incentives include:

• Allowing for the appropriate development of farm dwellings and employee housing on limited portions of IALs;

• Providing up to a $7.5 million IAL Qualified Agricultural Cost Tax Credit to promote investment and growth in agricultural ventures on IALs;

• Allowing the Chair of the Board of Agriculture to establish a $2.5 million loan guaranty program for farmers to develop and implement agriculture projects on IALs;

• Requiring the Department of Agriculture and the counties to specifically consider the needs of agricultural operations on IALs when developing their Water Use and Development Plans; and

• Providing for the priority processing of permit applications for agricultural processing facilities for an agribusiness where the majority of the agribusiness' land is designated as IALs.

This measure also establishes the procedures and requirements for a landowner to reclassify 15 per cent or less of lands from agricultural to rural, urban, or conservation land by designating 85 per cent of its land as IALs through an LUC declaratory order. In order to qualify, the IAL must be certified by the DOA, must show that it has sufficient quantities of water to support viable agricultural production and is land that contributes to maintaining a critical land mass important to agricultural operating productivity as set forth in section 205- 44, Hawaii Revised Statutes, when considering the reclassification of 15 per cent or less of lands to rural, urban, or conservation, it must be consistent with county general and community development plans and the LUC has the ability to impose conditions on these lands. In order to safeguard against a landowner seeking to redesignate land dedicated as

Agriculture and Hawaiian Affairs Page 1 IALs, this measure provides that such redesignation may only be done by the adoption of a concurrent resolution approved by a supermajority vote of both houses of the Legislature.

AGRIBUSINESS DEVELOPMENT CORPORATION

The Legislature passed various measures relating to the operation and powers of the Agribusiness Development Corporation (ADC). A prominent aspect of HB2293, HD1, SD2, CD2 is that it authorizes ADC to issue revenue bonds to acquire agricultural lands on owned by the George Galbraith Estate. Also pursuant to this measure, ADC is authorized to:

• Purchase, accept, and maintain permanent conservation easements;

• Contract with financial institutions to provide lease management services with regard to ADC controlled agricultural lands; and

• Acquire land as a resource value of the State, and if an agreement is not reached within a reasonable time, DLNR may exercise eminent domain to acquire these lands.

Furthermore, by passing HB2085, HD1, SD2 the Legislature has mandated that members of the Board of ADC possess knowledge, experience, and expertise relating to specified secondary industries related to agriculture. This measure also requires ADC to develop a five-year strategic plan for presentation to the Legislature prior to the 2009 Regular Session.

ALTERNATIVE ENERGY

The Legislature established that solar energy facilities are a permitted usage within certain land within the agricultural district by enacting HB2502, HD2 (Act 31). The Legislature also passed SB2849, SD1, HD1, CD1, which permits the use of lands in the agricultural district for agricultural-energy facilities where the production, storage, and distribution of renewable energy are integrated with an agricultural activity. These measures promote the State's policy of finding and developing alternative energy sources to lessen the State's dependency on oil for energy.

AGRICULTURAL LOANS

The Legislature recognized the important role that having available financing plays with regard to agricultural operations. By passing HB2261, HD2, SD1, the Legislature created a new class of loans in the agricultural loan program for farm sustainable projects and a new class of loans in the aquacultural loan program for aquacultural sustainable projects. The Legislature also increased the loan ceiling for the development or operation of a farm, ranch, or aquaculture operation on Hawaiian home lands by enacting HB3126, SD2, CD1 (Act 85).

Page 2 Agriculture and Hawaiian Affairs BIOSECURITY

The issue of biosecurity has been an important topic for the Department of Agriculture, farmers, and conservation groups. The Legislature enacted SB2850, SD2, HD2, CD1, which appropriated funds to the Department of Agriculture to establish a Biosecurity Program to prevent and control the importation and spread of pests and restricted organisms. The Legislature also passed HB2517, HD1, SD1 (Act 40) that requires the Department of Agriculture to designate restricted plants and allows the Department to regulate or restrict the sale of restricted plants. This measure specifically prohibits the import or sale of noxious weeds except for research purposes. In order to fund biosecurity activities, HB2843 HD2, SD2, CD1 expands the items subject to the Quarantine and Eradication Service Fee to include any freight brought into the State.

Bills Passed

AGRIBUSINESS DEVELOPMENT CORPORATION

Agribusiness Development Corporation; Qualifications of Board of Directors and Preparation of Strategic Plan. (HB2085, HD1, SD2) Requires members of the Board of the Agribusiness Development Corporation (ADC) to have knowledge, experience, and expertise within specified secondary industries related to agriculture. Requires the ADC to develop a five- year strategic plan, to be presented to the Legislature prior to the 2009 Regular Session that includes identification and discussion of personnel and funding needs, new project areas such as marketing and agricultural enterprise development, proposed benchmarks and time lines for implementation, and recommendations for changes to the composition of the ADC Board to better achieve the goals set forth in the strategic plan.

Authority of Agribusiness Development Corporation; Acquisition of Galbraith Estate Lands. (HB2293, HD1, SD2, CD2) Allows the Agribusiness Development Corporation (ADC) to purchase, accept, and maintain permanent conservation easements or transfer such easements to a conservation trust. Allows ADC to contract with financial institutions to provide lease management services with regard to the lease of corporation-controlled agricultural land. Provides that the Legislature may authorize ADC to acquire land or an interest in land as a resource value of the State. Establishes that the Legislature may authorize the negotiation of installment purchase agreements to acquire specific parcels of land for the protection of agricultural lands, public land banking, or the promotion of farm ownership and diversified agriculture. Provides that ADC may, with the approval of the Governor, issue revenue bonds to acquire agricultural lands. Authorizes ADC to acquire specific agricultural lands located on Oahu and owned by the Galbraith Estate, and if an agreement is not reached within a reasonable time, DLNR may acquire the lands through the use of eminent domain powers.

AGRICULTURAL AND AQUACULTURAL LOANS

Agricultural and Aquacultural Loans; Sustainability Projects. (HB2261, HD2, SD1) Creates a new class of loans in the existing agricultural loan program for farm sustainable projects, and a new class of loans in the existing aquacultural loan program for aquacultural sustainable

Agriculture and Hawaiian Affairs Page 3 projects. Defines "farm sustainable projects" and "aquaculture sustainable projects" to mean projects that improve the operation's viability but are not directly tied to farm crop production or aquaculture production, respectively. Projects may include renewable energy generation, food safety, product traceability, biodiesel production, and ethanol production projects.

Increased Agriculture Loan Ceiling Under the Hawaiian Homes Commission Act. (HB3126, SD2, CD1; Act 85) Increases the loan ceiling for the development and operation of a farm, ranch, or aquaculture operation on Hawaiian home lands from $50,000 to $200,000.

HAWAIIAN AFFAIRS

Makahiki Commemoration Day. (SB1035, SD1, HD1, CD1; Act 68) Establishes November 20th of each year as Makahiki Commemoration Day. Establishes that Makahiki Commemoration Day is not to be construed as a state holiday.

Making Taro the State Plant. (SB2499, HD1, CD2; Act 71) Changes the effective date that taro (Kalo) is to be designated as the state plant from July 1, 2025 to July 1, 2008.

IMPORTANT AGRICULTURAL LANDS

Important Agricultural Lands. (SB2646, SD2, HD2, CD1) Creates a comprehensive set of incentives to establish and sustain viable agricultural operations on lands designated as important agricultural lands (IALs), which includes:

• Allows farm dwelling and employee housing may be developed on IALs for farmers, employees, and their immediate families who actively and currently farm on IALs upon which the dwelling is situated; provided that the dwellings may be built on up to five percent of the land designated as IALs or 50 acres, whichever is less;

• Establishing a refundable IAL Qualified Agricultural Cost Tax Credit equal to a maximum of almost twenty-one percent of a taxpayer's qualified agricultural costs over a three year period. The IAL Qualified Agricultural Cost Tax Credit is capped annually at $7,500,000 for all taxpayers who claim the credit;

• Appropriating $50,000 to the Department of Agriculture (DOA) to administer the IAL Qualified Agricultural Cost Tax Credit;

• Authorizing the Chairperson of the Board of Agriculture to issue guarantees of loans for agricultural projects on IALs;

• Requiring DOA to include the water needs of agricultural operations on IALs when developing the Water Use and Development Plan;

• Requiring the priority processing of permit applications for agricultural processing facilities for an agribusiness, where the majority of the agribusiness' land is designated as IALs;

Page 4 Agriculture and Hawaiian Affairs • Requiring the DOA to collaborate with the Department of Land and Natural Resources to identify and map public lands that should be designated as IALs, requiring the Land Use Commission to designate those lands as IALs, and transferring management of such lands to DOA beginning January 1, 2010;

• Triggers the designation of IALs pursuant to Act 183, Session Laws, 2005;

• Clarifying the procedures and requirements applicable to a petition for a declaratory order to designate IALs or to both designate IALs and reclassify agricultural land to rural, urban, or conservation; and

• Requiring prior legislative approval by the adoption of a concurrent resolution to remove a designation of lands as important agricultural lands.

INVASIVE SPECIES/BIOSECURITY

Department of Agriculture; Biosecurity Program. (SB2850, SD2, HD2, CD1) Requires that the Department of Agriculture establish a Biosecurity Program to prevent and control the importation and spread of pests and restricted organisms, and appropriates funds for that purpose. Also included in the budget are funds for the design and construction of interim and permanent joint inspection biosecurity facilities. Authorizes that funds expended from the Pest Inspection, Quarantine, and Eradication Fund may be used for the Biosecurity Program.

Designation of Restricted Plants and Prohibition on Sale of Noxious Weeds. (HB2517, HD1, SD1; Act 40) Requires the Department of Agriculture to designate, by rule, restricted plants that may be detrimental or potentially harmful to agriculture, horticulture, the environment, or animal or public health. Allows the Department of Agriculture to regulate or prohibit the sale of plants on the list of restricted plants. Prohibits the import, offer for sale, or sale of noxious weeds; provided that noxious weeds may be imported only for research purposes, by permit.

Inspection, Quarantine, and Eradication Service Fee. (HB2843, HD2, SD2, CD1) Expands the items subject to the Inspection, Quarantine, and Eradication Service Fee (inspection fee) to include any freight brought into the State, whether by marine commercial container shipment, air freight, or any other means of transporting freight. Requires the inspection fee to be assessed based upon the net weight of imported freight at the rate of 50 cents per every one thousand pounds. Designates the party paying freight charges to a transportation company as the party responsible for paying the inspection fee. Clarifies that the transportation company is not liable for payment of the inspection fee if the responsible party fails to pay it.

Taro Security and Purity Task Force. (SB2915, SD2, HD1, CD1) Creates the Taro Security and Purity Task Force (Task Force) with representatives from interested stakeholders and appropriates funds for its purposes, to be matched dollar per dollar by the Office of Hawaiian Affairs. The objectives of the Task Force shall include:

• Developing guidelines, protocols, and recommendations for taro policy, non-genetic modification-based taro research, and the allocation of resources to ensure the preservation and protection of taro;

Agriculture and Hawaiian Affairs Page 5

• Developing a program of incentives and projects to enhance taro security and purity, support taro farmers, and improve taro markets;

• Supporting the recovery of traditional taro cultivars;

• Developing programs to educate and promote public awareness regarding taro;

• Developing programs to provide taro education and training opportunities;

• Developing programs for commercial taro growers to maximize business viability and success;

• Developing a taro farming grant program to preserve the legacy of taro;

• Considering the feasibility of providing reduced leases for state lands for taro farmers; and

• Developing research and outreach programs for the control and eradication of apple snails.

LAND USE

Agricultural Business Within Enterprise Zones. (HB2739, HD1, SD2, CD1) Allows agricultural businesses to continue to qualify for enterprise zone (EZ) benefits when eligibility for the benefits are prevented or interrupted by a force majeure event. Includes agricultural growth as a recognized EZ purpose. Includes leased employees and employees under a joint employment agreement within the definition of full-time employee in hiring formulas. Changes the schedule of hiring increases required to qualify for EZ benefits. Provides that new employment requirements for business located within an area that becomes an EZ only apply to EZs established after July 1, 2008. Allows increases in agricultural gross sales and value-added product retail sales to count toward qualification for EZ benefits.

Agricultural-Energy Facilities. (SB2849, SD1, HD1, CD1) Permits the use of lands in agricultural districts to be used for agricultural-energy facilities where the production, storage, and distribution of renewable energy are integrated with an agricultural activity.

Allows existing structures on plantation community subdivisions to be used or rehabilitated for use as employee housing to be leased or rented at affordable rates for agricultural workers and as agricultural support buildings to be leased or rented for agricultural business operators or agricultural support services.

Boundary Amendments for Lands Contiguous or Adjacent to Agricultural Lands. (HB2450, HD1, SD2, CD1) Establishes that any decision approving a petition for a boundary amendment where lands in the petition area are contiguous or adjacent to lands in the agricultural districts include conditions prohibiting any action that would interfere with or restrain farming operations, and notification to developers and subsequent lessees of lands in the petition area, that adjacent lands are protected under chapter 165, Hawaii Revised Statutes, the Hawaii Right to Farm Act.

Page 6 Agriculture and Hawaiian Affairs Solar Energy Facilities in Agricultural District. (HB2502, HD2; Act 31) Makes solar energy facilities a permitted use in the agricultural district, on land with soil classified by the Land Study Bureau's detailed land classification as overall productivity rating class D or E.

WATER

Agricultural Water Security. (HB2965, HD2, SD2; Act 97) Allows a person who controls, operates, or manages an agricultural water system to negotiate an agreement for the production of emergency power for the agricultural water system when the Governor has declared that a disaster has occurred for any portion of the State which results in damage to the agricultural water system that necessitates the use of electrical power or backup generators to pump ground water for irrigation. Provides that if the agreement is negotiated with an independent power producer not subject to the jurisdiction of the Public Utilities Commission (PUC), that the execution of the agreement shall not cause the independent power producer to become subject to the jurisdiction of the PUC.

Preferential Agricultural Water Rates. (HB2810, HD1, SD1, CD1) Authorizes the Public Utilities Commission, upon request and proof that the requester engages in agricultural activities, to establish preferential potable water rates for qualified agricultural activities in a public utility's service area. Provides that agricultural activities include a commercial agricultural, silvicultural, or aquacultural facility or pursuit.

OTHER ISSUES

Cruelty to Equine Animals. (SB2895, SD1, HD1, CD1; Act 111) Makes it a class "C" felony to intentionally or knowingly torture, mutilate, or poison any animal belonging to the family Equidae, including horses, ponies, mules, donkeys, asses, burros, and zebras.

Hawaii-Produced Milk. (SB2956, SD1, HD1; Act 46) Provides that up to 100 percent of the production quotas of fresh milk produced in Hawaii shall be classified as Class I milk to ensure that the remaining dairy producers in Hawaii are paid a price commensurate with the quality of the milk they produce and to help ensure the availability of fresh milk for fluid consumption in the State. This measure also repeals existing provisions that prohibit producers or producer distributors from having milk production quotas that exceed 20 per cent of the total quotas established in the State. Also calls upon DOA to work with dairy stakeholders and CTAHR to develop a strategic plan that outlines short- and long-term initiatives to ensure the availability of fresh milk in Hawaii.

Honey as an Agricultural Commodity. (SB2584, SD2, HD1) Amends the definition of "agricultural commodity" to include raw unprocessed honey and establishes a definition of the term "raw unprocessed honey".

Lease of Animal Quarantine Facilities. (HB3120, HD2, SD1, CD1; Act 109) Provides that the Board of Agriculture (Board) may contract with third parties for the use or rental of animal quarantine property or facilities at a reasonable lease rent as determined by the Board, provided that the property or facilities are used for animal welfare or agricultural-related activities.

Agriculture and Hawaiian Affairs Page 7

Resolutions Adopted

HAWAIIAN AFFAIRS

Hawaiian Language Signs at the State Capitol. (SR121, SD1) Requests that the Department of Accounting and General Services develop a plan to project a full integration of the Hawaiian language into the signs at the State Capitol that are subject to regularly scheduled repair or replacement and to submit a report of its findings to the Legislature prior to the convening of the 2009 Regular Session.

Office of Hawaiian Affairs; Televised Meetings. (HCR345) Requests the Office of Hawaiian Affairs to televise the general meetings of its Board of Trustees to keep the Native Hawaiian community informed of major issues that affect them.

Queen Liliu‘okalani's Birthday. (SR120) Recognizes and acknowledges September 2nd of each year as the birth date of Queen Liliu‘okalani by declaring that date a non-state holiday to commemorate Queen Liliu‘okalani for her outstanding courage and dedication to her people in the face of oppression.

Recognizes and commends the ongoing efforts of local groups who continue to speak in support of education efforts to establish a true and current understanding of Queen Liliu‘okalani's life, sacrifice, and contributions.

IMPORTANT AGRICULTURAL LANDS

Important Agricultural Lands; Galbraith Estate Lands. (SR76) Urges the City and County of to initiate and advance the process to identify and map the Galbraith Estate lands as important agricultural lands (IALs).

Urges the Honolulu City Council to adopt the IAL maps delineating the Galbraith Estate lands as IALs.

Urges the Department of Agriculture and the Office of Planning to support the designation of the Galbraith Estate Lands as IALs.

Urges the Land Use Commission, upon receipt of the IAL maps delineating the Galbraith Estate lands, to identify and designate the Galbraith Estate lands as IALs.

Urges the City and County of Honolulu and the Land Use Commission, upon the designation of the Galbraith Estate lands as IALs, to restrict their use to facilitate the long-term dedication of the Galbraith Estate lands as agricultural lands to preserve and perpetuate their continuing benefit to the people of Hawaii.

Page 8 Agriculture and Hawaiian Affairs INVASIVE SPECIES/BIOSECURITY

Invasive Species; State Inspection Programs. (HCR208) Supports Congressional action to exempt the State of Hawaii from provisions of the federal Plant Protection Act of 2000 that prohibit the State Department of Agriculture from inspecting plants, plant products, and other biological organisms that may carry invasive species.

OTHER ISSUES

Geographically Disadvantaged Farmers; Federal Legislation. (SCR234; SR137) Requests that Hawaii's Congressional delegation introduce and support federal legislation that will:

• Improve the competitiveness of Hawaii's farmers and ranchers with regard to transportation in the domestic and international marketplace with the goal of seeking parity between Hawaii's farmers and ranchers and their mainland counterparts;

• Address transportation barriers that inhibit the ability of neighbor island farmers and ranchers to transport their goods to Oahu markets and, on a statewide level, of Hawaii farmers and ranchers to transport their goods to foreign and domestic markets; and

• Address the costs of transporting agricultural commodities or inputs used to produce agricultural commodities in a geographically disadvantaged state such as Hawaii.

Requests that the State of Hawaii Department of Agriculture work with its federal counterpart to address the enumerated goals to benefit the geographically disadvantaged farmers and ranchers of the State.

Hawaiian Cacao Task Force. (HCR326, HD2) Requests that the Department of Agriculture convene a Cacao Task Force consisting of interested stakeholders to develop a plan within one year to identify strategies to:

• Accelerate the growth of the Hawaii cacao industry;

• Increase the manufacture and supply of locally grown cacao;

• Promote the use and products of locally grown cacao; and

• Identify potential obstacles to the local cacao industry.

Agriculture and Hawaiian Affairs Page 9

Page 10 Agriculture and Hawaiian Affairs COMMERCE, CONSUMER PROTECTION AND AFFORDABLE HOUSING

The Committee on Commerce, Consumer Protection and Affordable Housing has jurisdiction over programs relating to business regulation, professional and vocational licensing, consumer protection, financial institutions, insurance regulation; public utility regulation; and telecommunications regulation; housing development including affordable housing, the landlord tenant code, condominium property regimes, and leaseholds.

Highlights

AFFORDABLE HOUSING

During the 2008 Regular Session, the Legislature addressed the lack of affordable housing in the State through various measures. For example, SB3174, SD2, HD2, CD1, increases the Hawaii Housing Finance and Development Corporation's Hula Mae Multifamily Revenue Bond authorization to provide additional funds for the Corporation to undertake and maintain housing loan programs in the State

However, the Legislature recognized that government cannot alone increase the needed supply to meet the overwhelming demand for affordable housing for those with incomes of 140 per cent and below the median income in Hawaii, and private landowners and developers need incentives in order to meet the demand for and increase the supply of affordable housing. SB2293, SD1, HD1, CD1, provides an exemption from the Hawaii Housing Finance and Development Corporation's equity sharing program and reduces the occupancy requirement and transfer restriction period for new privately-owned and financed multi-family condominium housing developments of 75 units or more in order to encourage the private sector to build affordable housing projects.

Leasehold condominium and cooperative housing units are a relatively affordable housing option for thousands of Hawaii residents, but opportunities to use this housing option are declining as the expiration of existing leases for over 8,000 leasehold condominium and cooperative housing units approaches and these leasehold interests are set to revert to the fee owners within the next thirty years. Thus, the Legislature also took prospective action by adopting HCR125, HD1, which requests the Auditor to examine the issue of the upcoming condominium and cooperative housing project lease expirations, and its potential impact on the availability of replacement and affordable housing units for Hawaii residents.

CONSUMER PROTECTION

The Legislature passed regulatory measures that would protect public health. For example, HB3109, SD1 (Act 63), ensures that only a licensed dispensing optician is permitted to dispense and fit, upon written prescription, non-corrective contact lenses. HB2438, HD2, SD2, CD1, requires that only reduced ignition propensity cigarettes (fire-safe cigarettes) be sold in the State, and establishes the oversight, regulation, and enforcement of the fire-safe cigarette manufacturing, testing, and certification.

Commerce, Consumer Protection and Affordable Housing Page 11 The Legislature also passed measures that would protect individuals facing foreclosures or in the process of foreclosure. In order to prevent scammers called "mortgage rescuers" from seeking to take advantage of desperate homeowners trying to save their property from foreclosure, the Legislature passed HB2326, HD2, SD1, which establishes the Mortgage Rescue Fraud Prevention Act and requires these consultants to provide homeowners with a written contract spelling out services and with the right to cancel. Furthermore, in the case of a non- judicial mortgage foreclosure, SB2454, SD1, HD1, CD1, provides greater access to information relating to a non-judicial foreclosure by requiring the foreclosure mortgagee to provide pertinent information regarding the property to interested parties.

Finally, the Legislature recognized that copper theft continues to be a serious problem, inasmuch as copper thieves illegally traffic in stolen copper as a ready source of cash, by passing several measures to discourage copper thieves from selling stolen copper to scrap dealers and reduce the incidence of copper theft in Hawaii. For example, HB2347, HD1 (Act 32), affirms and clarifies that a scrap dealer can be punished for violations involving either being unlicensed or by failing to keep or falsifying records. HB2589, HD2, SD2 (Act 91), requires sellers of copper, at the time of sale of copper, to present to the scrap dealer a valid proof of identification and requires the scrap dealer to pay for the copper by check, while SB2782, SD2, HD2 (Act 53), expands the copper theft laws by creating a misdemeanor offense for the theft of a beer keg.

INSURANCE

The Legislature passed measures relating to insurance to allow greater flexibility in insurance investments and provide greater opportunities for captive insurance companies and captive organizers. For example, SB3019, SD1, HD2, amends certain provisions of the Insurance Code to allow insurers more flexibility in their investments without significantly lessening protection to insurance policyholders. Recognizing Hawaii's position as one of the world's leading captive insurance jurisdictions, the Legislature passed SB3023, SD2, HD2, CD1, which provides for the organization, licensing, operation, and regulation of Special Purpose Financial Captive Insurance Companies and Sponsored Captive Insurance Companies in Hawaii to provide additional opportunities for qualified captive organizers to pursue the securitization of insurance risks through a Hawaii-licensed captive insurance company.

The Legislature also recognized the efforts of and recommendations from the National Association of Insurance Commissioners (NAIC) and the National Conference of Insurance Legislators (NCOIL). HB2255, HD2, SD2, CD1, updates state life insurance laws by implementing provisions adopted by the NAIC relating to employee group life insurance policies, group life insurance coverage for spouses and dependents of insured persons, and the replacement of life insurance policies and annuities. The Life Settlements Model Act that was adopted by the NCOIL was passed by the Legislature in HB94, HD1, SD2, CD1, in order to establish consumer protections in life settlement transactions where the owner of a life insurance policy transfers the death benefit of any portion of the policy for compensation that is less than the expected death benefit, but more than the surrender value of the policy.

SUSTAINABILITY

In light of various local, regional, and global changes, and to better define and implement state goals, objectives, policies, and priority guidelines, the Legislature enacted Act 8,

Page 12 Commerce, Consumer Protection and Affordable Housing Special Session Laws of Hawaii 2005, which created the Hawaii 2050 Sustainability Task Force to review the Hawaii State Plan and the State's planning process. In December 2007, the Hawaii 2050 Sustainability Plan was submitted to the Legislature. The Hawaii 2050 Sustainability Plan provides a framework for addressing vital quality-of-life and public policy issues, including land and water use, energy, public infrastructure, economic development, transportation, education, the arts, and health, and provides strategies to meet the needs of Hawaii's residents now and in the future. In response to the submitted Plan, the Legislature passed SB2833, SD1, HD1, CD1, which requires the University of Hawaii at Manoa's Public Policy Center to review the Hawaii 2050 Sustainability Plan to further study and develop the Plan in order for it to effectively serve as a guide to policy makers.

Bills Passed

I. Affordable Housing

Affordable Housing; For-Sale Multi-Family Condominium Developments; Exemptions. (SB2293, SD1, HD1, CD1) Provides new multi-family housing condominium developments of seventy-five units or more an exemption from the Hawaii Housing Finance and Development Corporation's shared appreciation equity program and a reduced occupancy requirement and transfer restrictions from ten-years to three-years; provided that:

• The development is constructed on privately owned lands and is privately financed without and federal, state, or county financing assistance or subsidies, including tax credits; and

• The primary purpose for constructing the development is to augment the existing affordable housing inventory in the State, and not for the purpose of satisfying any affordable housing or reserved housing requirement.

Affordable Housing; Hula Mae Multifamily Revenue Bond Authorization. (SB3174, SD2, HD2, CD1) Increases the Hawaii Housing Finance and Development Corporation's Hula Mae Multifamily Revenue Bond authorization from $400,000,000 to $500,000,000 for the purpose of undertaking and maintaining housing loan programs in the State.

II. Business Regulation and Financial Institutions

Automated Teller Machines; Transaction Fees. (SB2292; Act 4) Requires that an agreement to operate or share an automated teller machine may not prohibit, limit, or restrict the right of the owner or operator of the automated teller machine to charge a customer transaction fee.

Business Registration; Corporate Dissolution; Effect of Expiration. (SB3006, SD1, HD2; Act 54) Streamlines and clarifies the business registration laws by making several technical and housekeeping amendments to correct errors, ambiguities, and inconsistencies in the laws. Amends the laws governing corporate dissolution and the rights of the Director of Commerce and Consumer Affairs to be consistent with each other. Amends the corporate dissolution

Commerce, Consumer Protection and Affordable Housing Page 13 laws relating to administrative dissolution and the effect of expiration to more accurately reflect the administrative procedures. Makes the laws regarding the expiration of corporations consistent with other entities. Streamlines and conforms the filing request requirements for limited liability companies.

Business Registration; Trade Names; Registration; Enforcement. (HB3085, HD2, SD1; Act 108) Corrects notable ambiguities in the laws governing trade names by clarifying ownership rights and registration rights with respect to trade names. Lays out the "confusingly similar" standard with respect to ownership rights and the "substantially identical" standard with respect to registration rights, and clarifies the manner in which each standard relates to the appeal of a registered trade name or entity name. Clarifies and corrects inconsistencies, ambiguities, and errors in the laws relating to the protection and registration of trademarks, service names, and trade names. Revises the penalties for false filings to the Director of Commerce and Consumer Affairs, and clarifies that aggrieved filers may seek injunctive relief in a court of competent jurisdiction.

Code of Financial Institutions; Updates; Housekeeping Amendments. (SB3008, SD2, HD1, CD1) Makes various housekeeping amendments and updates the Code of Financial Institutions to improve the regulation of financial institutions in Hawaii by the Department of Commerce and Consumer Affairs.

Requires financial services loan companies to conspicuously display their principal office license and branch office license at their respective principal offices and branch offices.

Addresses temporary closures of Hawaii financial institutions in the event of an emergency for a period of time up to 180 days, or a longer period as determined necessary by the Commissioner of Financial Institutions of the Department of Commerce and Consumer Affairs. Requires financial institutions to provide to the Commissioner of Financial Institutions written notice of temporary closure and reopening.

Clarifies the authority of a person to serve as a trustee or a trust company. Clarifies how prepayment penalties are calculated. Clarifies that the Commissioner of Financial Institutions may examine a financial institution holding company when the holding company directly owns twenty-five per cent or more of any class of voting securities of a Hawaii financial institution, and clarifies that the Commissioner of Financial Institutions is prohibited from examining a financial institution holding company that indirectly controls a Hawaii financial institution through one or more financial institution holding companies unless the Commissioner has good cause to believe that the holding company is experiencing financial adversity that will have an material negative impact on the safety and soundness of the Hawaii financial institution.

Places a Hawaii-licensed foreign bank on equal footing with a Hawaii state-chartered financial institution when relocating its place of business less than a mile from its existing location.

Amends the law relating to the collection of information necessary to conduct criminal history record checks in order to allow the Department of Commerce and Consumer Affairs to conduct criminal history record checks on proposed directors and executive officers of a bank, savings bank, savings and loan association, trust company, and depository financial

Page 14 Commerce, Consumer Protection and Affordable Housing services loan company, and on the original chartering applicants and proposed executive officers of a credit union.

Financial Institutions; Name or Trademark Fraud. (HB2254, HD2, SD1; Act 51) Prohibits the use of the name or trademark of a financial institution or its affiliates or subsidiaries when marketing or soliciting customers if the marketing materials are used without permission and used in a manner that could lead a reasonable person to believe that the materials originated from the financial institution or its affiliates or subsidiaries. Authorizes the Commissioner of Financial Institutions of the Department of Commerce and Consumer Affairs to impose a civil penalty of up to $10,000 for each violation.

Money Transmitters; Housekeeping Amendments; Fee Structures. (SB3009, SD2, HD2, CD1) Makes various amendments to the Money Transmitters Act to effectively regulate the money transmitter industry in Hawaii.

Permits a licensed money transmitter to change its name, fictitious name, or trade name upon the filing of an application and payment of a nonrefundable fee to the Commissioner of Financial Institutions at the Department of Commerce and Consumer Affairs. Requires all fees collected pursuant to the Money Transmitters Act to be deposited into the Compliance Resolution Fund. Provides a limited exemption for financial institutions from the licensing and examination requirements under the Money Transmitters Act.

Requires all applicants to disclose in their applications for a money transmitter license to the Commissioner of Financial Institutions any pending or final suspension, revocation, or other enforcement action by any state or governmental authority during the last five years, or any other information the Commissioner may require. Requires corporate applicants to provide in their money transmitter license applications any information necessary to conduct a criminal history record check of each of the executive officers, key shareholders, and managers who will be in charge of the applicant's activities, accompanied by the appropriate payment for each record check.

Requires non-corporate applicants to provide in their money transmitter license application any information necessary to conduct a criminal history record check of each principal of the applicant, accompanied by the appropriate payments for each record check. Requires applicants for the renewal of their license to file an annual report with the Commissioner of Financial Institutions that includes data required. Allows the Commissioner of Financial Institutions to issue a written decision denying a money transmitter license application if the Commissioner is not satisfied that the applicant meets all the criteria set forth for approval.

Amends the fee structure for an application, license, and renewal of license for a person or corporation to engage in the business of money transmission. Authorizes the Commissioner of Financial Institutions to charge an examination fee to each license money transmitter and authorized delegate examined or investigated based upon the cost per hour per examiner. Sets the hourly examination fee at $60 beginning July 1, 2008. Also authorizes the Commissioner of Financial Institutions to charge other reasonable expenses incurred in connection with an examination.

Makes various clarifying amendments regarding reporting requirements of money transmitter licensees upon the occurrence of certain events, and confidentiality requirements of the Commissioner of Financial Institutions relating to the furnishing of reports of examinations and

Commerce, Consumer Protection and Affordable Housing Page 15 other information of a licensee or authorized delegate. Clarifies that all administrative fines collected pursuant to the Money Transmitters Act will be deposited into the Compliance Resolution Fund.

Allows the Department of Commerce and Consumer Affairs to conduct criminal history record checks on each principal of every non-corporate applicant for a money transmitter license, and the executive officers, key shareholders, and managers in charge of a money transmitter's activities of every corporate applicant for a money transmitter license.

Uniform Unclaimed Property Act; Updates and Amendments. (HB2559, HD2, SD1; Act 55) Updates the Uniform Unclaimed Property Act by enacting the 1995 version of the Act. Updates existing law by clarifying jurisdictional issues, clarifies what constitutes unclaimed property, places restrictions on the "dormancy" charges that holders may impose, requires the payment of interest on certain property items, and restricts the ability of third parties to charge service fees to "find" unclaimed property for clients. Exempts gift certificates and gift cards from the Uniform Unclaimed Property Act; provided that the gift certificates and cards do not have expiration dates or fees. Exempts gift certificates and gift cards with expiration dates from the Uniform Unclaimed Property Act; provided that the gift certificate or card is issued before January 1, 2010, and the issuer adopts a policy to honor the gift certificate or card after the expiration date and eliminates any charges or fees. Effective July 1, 2009.

Volume 11, Hawaii Revised Statutes; Trade Regulation and Practice; Uniform Commercial Code. (SB2402, SD1; Act 19) Makes various amendments that are of a technical housekeeping nature to the laws relating to trade regulation and practice and the Uniform Commercial Code under volume 11 of the Hawaii Revised Statutes for the purpose of correcting errors and clarifying language.

III. Consumer Protection

Dispensing Opticians; Licensure; Non-Corrective Contact Lenses. (HB3109, SD1; Act 63) Specifies that a dispensing optician's license is required for the dispensing and fitting, upon written prescription, of non-corrective contact lenses and for the sale of or offer to sell non- corrective contact lenses.

Hawaii Medical Board; Name Change. (HB2169, HD1; Act 9) Distinguishes and eliminates confusion between the Board of Medical Examiners and the county medical examiners by changing the Board's name to the "Hawaii Medical Board."

Liquor Licenses; Wineries. (SB2169, SD1, HD1) Establishes a winery class under the classes of liquor licenses. Authorizes licensed wineries to sell wine that is manufactured on the licensee's premises to consumers in winery-sealed kegs and magnums for consumption on or off the premises, and permits licensed wineries to conduct other various activities at locations other than the licensee's premises as long as the manufacturing takes place in the State and the other locations are properly licensed by the same ownership.

Mixed Martial Arts; Fee Structure. (SB3030, SD2, HD2, CD1) Amends the fee structure that a licensed mixed martial arts contest promoter is required to pay in order to fund the Mixed Martial Arts Licensing Program under the regulation of the Department of Commerce and

Page 16 Commerce, Consumer Protection and Affordable Housing Consumer Affairs. Increases the license fee imposed on gate receipts of professional mixed martial arts contests beginning in fiscal year 2009-2010, and again, for fiscal years beginning July 1, 2013. Clarifies that the two per cent fee on gross receipts from telecasts of a professional mixed martial arts contest event includes pay-per-view telecasts, and is not restricted to telecasts in Hawaii. Requires each mixed martial arts contest promoter to pay an additional surcharge fee for fiscal years 2007-2008 and 2008-2009 to cover the cost of implementing the Mixed Martial Arts Licensing Program. Effective on July 1, 2009, to coincide with the effective date of the Mixed Martial Arts Licensing Program.

Mortgage Foreclosures; Mortgage Rescue Fraud Prevention Act; Consumer Protections; Distressed Property Consultant. (HB2326, HD2, SD1) Protects Hawaii consumers from distressed property consultants ("mortgage rescuers") who prey on homeowners facing foreclosure by requiring these consultants to provide homeowners with a written contract spelling out services and with the right to cancel. Sets forth the Mortgage Rescue Fraud Prevention Act to:

• Require mortgage rescuers to provide homeowners with a written contract that spells out the services the mortgage rescuer is expected to provide;

• Allow the homeowner the right to cancel the contract at any time before the services are rendered;

• Limit the amount that the mortgage rescuer can make if the homeowner is successful in buying back the home to one hundred twenty-five per cent of the total debt on the home paid by the mortgage rescuer; and

• Require that the mortgage rescuer provide the homeowner with at least eighty-two per cent of the value of the home if the homeowner is eventually unable to buy back the home from the mortgage rescuer.

Establishes a list of acts and transactions that a distressed property consultant or distressed property purchaser is prohibited from engaging in. Establishes that a violation of the Mortgage Rescue Fraud Prevention Act will be deemed as an unfair or deceptive act or practice and penalties will be cumulative.

Non-Judicial Mortgage Foreclosures; Access to Information. (SB2454, SD1, HD1, CD1) Provides greater access to information relating to a non-judicial foreclosure by requiring a foreclosure mortgagee to provide pertinent information regarding the property to interested parties. Requires the mortgagee in a non-judicial foreclosure process to provide to the party in breach of the mortgage agreement with the contact information, including the electronic address, of the mortgagee's attorney who must be physically located and licensed in Hawaii. Requires the attorney who is authorized as the contact individual to disclose to the requestor, upon request, the amount to cure the default, attorneys' fees and costs, and other fees and costs estimated to be incurred by the foreclosing mortgagee prior to the auction within five business days of the request, and the sale price of the mortgaged property once auctioned. Requires the mortgagee to provide the date and time of a postponed auction, or if the auction is cancelled, information that the auction was cancelled.

Notary Public; Notarized Documents; Fraud Prevention. (HB2920, SD1, CD1) Enumerates the powers and duties of the Attorney General with regard to notaries, and authorizes the

Commerce, Consumer Protection and Affordable Housing Page 17 Attorney General to prescribe measures as necessary to prevent the fraudulent use of notarized documents. Establishes misdemeanor criminal offenses for:

• A notary who knowingly fails to verify the identity and signature of the signer of a notarized document;

• A notary who knowingly fails to authenticate a document with a certification statement;

• The misrepresentation of a notarized document; and

• Unauthorized practice as a notary public.

Specifies conduct that would subject a notary public to administrative fines, and requires notaries to keep a record of the nature of the act, transaction, or thing to which the notarized document relates. Effective on January 1, 2009.

Pseudoephedrine Sales; Electronic Sales Log; Narcotics Enforcement; Penalties. (SB2373, SD1, HD2, CD1) Requires pharmacies and retailers to maintain an electronic log of pseudoephedrine and pseudoephedrine combination product sales and other required information, and transmit the information to the Department of Public Safety Narcotic Enforcement Division on a monthly basis. Requires that the electronic log be capable of being checked for compliance against all state and federal laws, and be subject to random and warrantless inspection by county or state law enforcement officers. Permits retailers and pharmacies until January 1, 2010, to establish and implement an electronic sales log. Creates a misdemeanor and immediate license suspension penalty for any retailer who intentionally or knowingly fails to transmit any information on the electronic sales log.

Creates a class C felony penalty for any person who is guilty of knowingly purchasing, possessing, or receiving more than nine grams of any product containing a detectable quantity of pseudoephedrine without a valid prescription within a thirty-day period.

Deletes the exemption from prohibition that existed for sales of pseudoephedrine, when it is contained in a product, mixture, or preparation that is in liquid, liquid capsule, or gel capsule form, if pseudoephedrine is not the only active ingredient.

Reduced Ignition Propensity Cigarettes; Cigarette Sales; State Fire Council. (HB2438, HD2, SD2, CD1) Requires that only reduced ignition propensity cigarettes (fire-safe cigarettes) be sold in the State. Places the primary responsibility and enforcement of fire-safe cigarettes with the State Fire Council. Authorizes the State Fire Council to oversee, approve, and ensure that cigarettes intended for sale in Hawaii have been tested in accordance to an approved test method and meet performance standards. Requires cigarette manufacturers to submit to the State Fire Council a written certification attesting that each cigarette has been tested in accordance with an approved test method, and requires that all cigarettes intended for sale in Hawaii be certified with an approved marking. Allows the State Fire Council to adopt any rules necessary to implement. Sets forth civil penalties to be assessed against any individuals in violation of the Reduced Ignition Propensity Cigarettes Law, and authorizes the Attorney General to bring a cause of action, including injunctive relief, recovery of costs or damages suffered by the State as a result of the violation, and enforcement costs relating to the specific violation and attorney fees. Effective September 30, 2009 to coincide with the excise tax incremental increase on cigarettes.

Page 18 Commerce, Consumer Protection and Affordable Housing

Scrap Dealers; Prohibitions and Penalties. (HB2347, HD1; Act 32) Affirms and clarifies that a scrap dealer can be punished for violations involving either being unlicensed or by failing to keep or falsifying records.

Scrap Dealers and Recyclers; Copper Purchases; Payment by Check; Penalties. (HB2589, HD2, SD2; Act 91) Requires sellers of copper, at the time of sale of the copper, to present to the scrap dealer or recycler a valid photo identification card or license of the seller issued by a federal or state government agency authorized to issue valid identification. Requires a scrap dealer or recycler to pay for copper by check payable to the seller. Allows the check to be mailed to the address shown on the identification, or allows the scrap dealer or recycler to arrange for the check to be picked up personally by the seller at the place of business of the scrap dealer or recycler. Provides penalties for any person who violates these requirements.

Scrap Metal; Beer Kegs; Penalties. (SB2782, SD2, HD2; Act 53) Creates a misdemeanor offense of theft of a beer keg. Includes beer kegs in the laws relating to scrap dealers purchasing copper, and the laws' receipt of purchase disclosure requirements. Sunsets on July 1, 2009.

IV. Condominiums and Planned Communities

Condominiums; Certificate of Deposit Account Registry Service Network; Condominium Association Funds. (HB2460, SD1; Act 76) Clarifies that condominium associations may invest association funds in certificates of deposit through the Certificate of Deposit Account Registry Service (CDARS) network. Specifies that funds collected by a condominium association may be placed through a federally insured financial institution located in the State for investment in certificates of deposit issued through the CDARS network in federally insured financial institutions located in the United States.

Condominiums; Condominium Associations; Special Meetings. (SB1809; Act 13) Requires that if a condominium board schedules a special association meeting pursuant to a petition, the special meeting must be held within sixty days of the receipt of the petition for a special meeting. Clarifies that petitioners may send out notice of a meeting and proxies at the expense of the condominium association if the secretary or managing agent fails to do so.

Condominiums; Housekeeping Amendments. (SB2401, SD1; Act 28) Makes various amendments that are of a technical housekeeping nature to the laws relating to condominiums to reflect the existence of two different chapters relating to condominiums, and for the purpose of correcting errors and references and clarifying language.

Condominiums; Mediation; Arbitration; Administrative Hearing. (HB3331, HD2, SD2, CD2) Clarifies the types of disputes relating to the interpretation or enforcement of a condominium association's declaration, bylaws, house rules, or certain other matters that are subject to mediation. Allows parties to a failed mediation to pursue arbitration no sooner than thirty days from the termination of mediation. Clarifies that the option to file for arbitration or an administrative hearing applies to parties to a proposed or terminated mediation, including instances where a party refuses to participate in mediation. Makes more widely available

Commerce, Consumer Protection and Affordable Housing Page 19 the option for an administrative hearing. Specifies how the termination date of the mediation is to be determined for purposes of time limitations for parties to file for arbitration or an administrative hearing. Provides that if mediation is not completed within two months from commencement, no further mediation is required unless agreed to by the parties. Requires the hearings officer to hear any matter identified in the mediation request in instances where no mediation has occurred prior to the hearing. Sunsets on June 30, 2009.

Planned Communities; Restatement of Planned Community Association Documents; Amendments to Planned Community Association Documents. (HB2894, SD1; Act 70) Establishes a rule of interpretation that is similar to the rule of interpretation in the condominium law. Allows non-condominium homeowner associations to restate their documents by board resolution and without an owner vote, which is similar to the procedure used by condominium associations to restate their documents. Provides flexibility in amending the governing documents of non-condominium associations by permitting amendments to be made by written consent as well as by vote at a meeting, even if the documents do not specifically permit a vote by written consent.

Planned Community Associations; Board of Directors Meeting Minutes; Disclosure Statements. (HB2492, HD1, SD1, CD1) Requires the minutes of board of directors' meetings for a planned community association to include the recorded vote of each board member present on all motions except motions voted upon in executive session. Requires sellers of residential real property to disclose all restrictions or conditions on use relating to the property and contained in a recorded document, including any unrecorded rules or guidelines issued by entities responsible for enforcing the restrictions or conditions. Specifies the types of planned communities for which seller disclosure statements must include the planned community declaration and association documents. Takes effect November 1, 2008, to allow planned community associations time for implementation of the new requirements.

V. Insurance

Insurance; Insurance Investment; Investment Pools. (SB3019, SD1, HD2) Amends certain provisions of the Insurance Code to allow insurers more flexibility in their investments, subject to certain limitations without significantly lessening protection to insurance policyholders. Updates the Investment Pools law to reflect current regulatory standards. Effective January 1, 2009.

Insurance; Special Purpose Financial Captive Insurance Companies; Sponsored Captive Insurance Companies. (SB3023, SD2, HD2, CD1) Amends the Insurance Code to provide for the organization, licensing, operation, and regulation of Special Purpose Financial Captive Insurance Companies and Sponsored Captive Insurance Companies in Hawaii under the regulation of the Insurance Commissioner of the Department of Commerce and Consumer Affairs.

Makes clarifying amendments to the Insurance Code for consistency and to reflect the new provisions added to the Insurance Code relating to Special Purpose Financial Captive Insurance Companies and Sponsored Captive Insurance Companies. Repeals a section of the Insurance Code relating to leased capital facilities.

Page 20 Commerce, Consumer Protection and Affordable Housing Life Insurance; National Association of Insurance Commissioners; Employee Group Life Insurance Policies. (HB2255, HD2, SD2, CD1) Updates state life insurance laws by implementing provisions adopted by the National Association of Insurance Commissioners (NAIC) relating to employee group life insurance policies, group life insurance coverage for spouses and dependents of insured persons, and the replacement of life insurance policies and annuities. Allows premiums for employee group life insurance policies to be paid entirely by the employer, entirely by the insured employees, or by a combination of both employer and employee contributions. Eliminates the requirement that a group life insurance policy funded partially by the insured employees have a participation of at least seventy-five per cent of the eligible employees. Eliminates the requirement that employee group life insurance policies cover at least ten employees at a time of issue. Eliminates the provision precluding individual selection by employees of amounts of insurance under an employee group insurance policy. Eliminates restrictions, based on the status of dependents, on the ability of insured employees to have their dependents covered under a group life insurance policy in amounts equivalent to the amount of coverage for the employee. Excludes the exercise of a term conversion privilege among corporate affiliates from the laws governing the replacement of life insurance policies and annuities.

Life Settlements Model Act; Stranger-Originated Life Insurance; National Conference of Insurance Legislators. (HB94, HD1, SD2, CD1) Adopts and implements the Life Settlements Model Act adopted by the National Conference of Insurance Legislators (NCOIL) to establish consumer protections in life settlement transactions where the owner of a life insurance policy transfers the death benefit of any portion of the policy for compensation that is less than the expected death benefit, but more than the surrender value of the policy. Sunsets two years from the date of approval.

Regulates permissible life settlement contracts and prohibits stranger-originated life insurance (STOLI) transactions by establishing contract, licensing, and reporting requirements. Allows the Insurance Commissioner of the Department of Commerce and Consumer Affairs to order an examination of the business and affairs of any licensee or applicant for a license and establishes examination and examination reporting requirements. Provides a list of guidelines regarding advertising for licensed brokers or providers to follow. Requires licensed brokers and providers to provide in writing to owners certain disclosures, owners' rights, and necessary information regarding the life settlement contract, and enables insurers to make inquiries and disclosures to assess the insurability of a policy applicant.

Establishes prohibited practices, sets forth prohibited fraudulent life settlement acts, and requires the mandatory reporting of fraudulent life settlement acts. Provides life settlement anti-fraud initiatives and confidentiality requirements. Establishes penalty provisions, allows the Insurance Commissioner to seek an injunction, permits any person damaged by the acts of another person in violation of the Life Settlements Act to bring a civil action for damages against the person committing the violation, and allows the Insurance Commissioner to issue a cease or desist order, or an emergency cease and desist order when an action presents an immediate danger to the public.

Sets forth a fee schedule for the issuance of a life settlement contract provider's and a life settlement contract broker's license. Establishes a regulatory service fee for a regularly licensed life settlement contract provider or life settlement contract broker.

Commerce, Consumer Protection and Affordable Housing Page 21 Requires the Insurance Commissioner to report to the Legislature prior to the 2009 and 2010 Regular Sessions regarding:

• Issues and concerns relating to the implementation and effects of the Life Settlements Act;

• The total number and disposition of the life settlement cases investigated by the Insurance Commissioner under the Life Settlements Act;

• An evaluation by the Insurance Commissioner of the effectiveness of the Life Settlements Act in regulating life settlement contracts; and

• Any recommendations to improve the provisions of the Life Settlements Act.

VI. Public Utility Regulation

Public Utilities; Property Transfers; Public Utilities Commission; Approval Exemption. (HB3080, HD1; Act 7) Allows a public utility to transfer, assign, or otherwise dispose of or encumber its property without first securing an authorizing order from the Public Utilities Commission (PUC) under exigent circumstances that call for rapid service restoration in order to prevent serious disruption of essential public services, avoid serious risk to public safety, or mitigate severe economic losses to a utility customer; provided that this action does not hinder or degrade the utility company's operations with respect to its services or other customers, and the utility company is duly compensated and reports in detail to the PUC within thirty days of the action. For purposes of their legislation, "property" does not include real property.

VII. Sustainability

Sustainability; Hawaii 2050 Sustainability Plan; University of Hawaii at Manoa's Public Policy Center; Report. (SB2833, SD1, HD1, CD1) Requires the University of Hawaii at Manoa's Public Policy Center to review the Hawaii 2050 Sustainability Plan and report to the Legislature no later than twenty days prior to the convening of the 2010 Regular Session. Requires that the review of the Hawaii 2050 Sustainability Plan to be submitted to the Legislature include:

• A review of the sustainability plan documents, data sources, and benchmarks developed to date by the Hawaii 2050 Sustainability Task Force;

• A meeting and consultation with leaders and organizations that developed each of the goals to frame and clarify their goals, objectives, actions, and benchmarks; and

• Through the use of the Public Policy Center's existing resources, a report on the feedback from the various stakeholders and a suggested action plan for furthering the vision and goals of the Hawaii 2050 Sustainability Plan.

Page 22 Commerce, Consumer Protection and Affordable Housing VIII. Time Shares

Time Share Plans; Limited Permit; Offer or Sale of Time Share Interests. (HB2372, HD2, SD2, CD1) Allows the Director of Commerce and Consumer Affairs to issue a limited permit that permits the offer or sale by a developer, in Hawaii, of an additional interest in a time share plan to an existing purchaser in the same time share plan; provided that certain conditions are met. Allows the Director of Commerce and Consumer Affairs to issue a limited permit that permits the offer or sale by a developer, in Hawaii, of a time share interest in a time share plan located outside of Hawaii, but within the United States, to an individual who currently owns a time share interest that was purchased from that developer, or that developer's affiliate; provided that certain conditions are met. Requires a developer offering a time share plan through a limited permit to file an application with the Director of Commerce and Consumer Affairs along with payment of a one-time fee of $1,000 per time share plan, which in turn requires the Director of Commerce and Consumer Affairs, within ten days of receipt of the completed application and fee, to issue a limited permit to the developer reflecting that the filing has been accepted and that the offering of the time share plan is permitted. Establishes application requirements and a renewal process for limited permits, including a renewal fee of $50.

Uniform Land Sales Practices Act; Time Shares; Exemption. (HB3325, HD2; Act 14) Exempts offers or dispositions of interests in time share plans from the Uniform Land Sales Practices Act.

Resolutions Adopted

Affordable Housing; Leasehold Conversion; Auditor; Study. (HCR125, HD1) Requests the Auditor to examine the issue of the upcoming condominium and cooperative housing project lease expirations, and its potential impact on the availability of replacement and affordable housing units for Hawaii residents. Requests that the study performed by the Auditor:

• Provide data on the loss of affordable housing stock due to leasehold expirations, including an examination of the current status of residential leaseholds in condominiums and co-operatives;

• Provide a range of alternatives, options, and solutions to address the upcoming leasehold expirations, including exploring ways to expand the State's affordable housing stock that may be associated with these expiring condominium leases; and

• Include input and recommendations on addressing the condominium leasehold expirations from various stakeholders, experts, and impacted entities and individuals.

Requests the Auditor to report findings and recommendations to the Legislature no later than twenty days prior to the convening of the 2009 Regular Session.

Industrial Hygiene, Safety, and Health Physics Professions; Sunrise Review; Auditor; Report. (SCR41, SD1) Requests the Auditor to conduct a sunrise review of the regulation of the industrial hygiene, safety, and health physics professions, and submit findings and

Commerce, Consumer Protection and Affordable Housing Page 23 recommendations to the Legislature no later than twenty days prior to the convening of the 2009 Regular Session.

Page 24 Commerce, Consumer Protection and Affordable Housing ECONOMIC DEVELOPMENT AND TAXATION

The Committee on Economic Development and Taxation has jurisdiction over programs relating to economic development, and other emerging industries development; financial and technical assistance to business; film and digital media production; astronomy, biochemistry, biomedicine, biotechnology and other scientific research and development activities; culture and arts; historic preservation; use of information storage, transmissions, processing and telecommunications; recreation including commercial ocean recreation activities, sports and athletics, Aloha Stadium; and taxation.

Highlights

During the 2008 Regular Session, reduced revenue estimates from the Council on Revenues led to the shelving of various tax incentives designed to boost specific industries. Consequently, the only tax measures that were adopted were those required under the Hawaii Constitution or those deemed necessary to improve the fairness, efficiency, or effectiveness of the Hawaii tax laws.

The Hawaii Constitution requires a tax refund or credit when the balance in the state general fund exceeds five percent of revenues for two successive years, and SB2153, SD1, HD1 (Act 58), provides a one-time refundable general income tax credit of $1 for each qualified exemption for resident individual taxpayers of Hawaii to meet the mandatory constitutional requirement. The refundable general income tax credit applies to the 2008 taxable year and is not available to convicted felons and other taxpayers who were committed to a correctional facility for the full 2008 taxable year.

Assessing the cost-effectiveness of existing tax credits and exemptions was a concern shared by legislators during the 2008 Regular Session. SR88, SD1, requested the Department of Taxation to report on the fiscal impact and rate of usage by taxpayers of certain income, general excise, public service company, and liquor tax credits or exemptions, including the exemption from gross income for proceeds of stock options from a qualified high technology business, the exemptions from general excise taxes for petroleum refiners, shipbuilding, ship repair businesses, and certified housing projects, the tax credit for lifeline telephone service, and the exemption on sales of liquor shipped out of Hawaii.

A number of industries—including auto retailers—faced mounting costs over the past few years. To fairly enforce the general excise tax laws for taxpayers engaged in service-to- service wholesale transactions, legislators passed HB1755, HD1, SD1 (Act 89), which clarified that the reduced general excise tax rate of 0.5 percent applies to dealers who provide goods or services to a purchaser of tangible personal property in order to fulfill the manufacturer's warranty obligation to the purchaser of the tangible personal property.

Legislators also sought to encourage more efficient, user-friendly ways to help tax payers file their returns or obtain refunds. As a result, legislators passed HB1412, HD1, SD1, CD1, which established the Integrated Tax Services and Management Special Fund to improve taxpayer filing efficiencies by encouraging taxpayers to file electronically. The Special Fund will be administered by the Department of Taxation and established with an appropriation of

Economic Development and Taxation Page 25 $2,900,000 from the general fund in fiscal year 2008-2009. The Department of Taxation is required to repay the $2,900,000 appropriation to the general fund no later than June 30, 2009. The monies in the Special Fund will be expended by the Department of Taxation and Director of Finance for purposes related to using performance-based contracts, post- implementation revenue-generating initiatives, tax collection capabilities, supporting the Department of Taxation's staffing requirements, central service expenses of the government, and implementing and administering the City and County of Honolulu Surcharge Tax and the Streamlined Sales and Use Tax Project.

Bills Passed

I. Culture and Arts

Filipino-American History Month; Designated. (HB3343, HD1; Act 15) Designates the month of October as "Filipino-American History Month" to commemorate the contributions of Filipino-Americans to the history and heritage of Hawaii and the United States. Provides that the month is not a state holiday.

Hawaiian Monk Seal; State Mammal. (SB2464, HD1, CD1; Act 72) Recognizes the importance and uniqueness of the Hawaiian monk seal to the Hawaiian Islands by establishing and designating the Hawaiian monk seal as the official state mammal.

Iolani Palace; Receipt of Funds. (SB2433, SD2, HD1) Establishes standards and conditions that the State of Hawaii Museum of Monarchy History (Friends of Iolani Palace) must meet to receive state funds, including:

(1) Licensure or accreditation;

(2) Compliance with all applicable federal and state antidiscrimination laws;

(3) A prohibition against using funds for entertainment or lobbying;

(4) Incorporation under state laws;

(5) Bylaws or policies for grants or subsidies;

(6) Internal Revenue Service tax exempt status; and

(7) A governing board whose members have no material conflict of interest and serve without compensation.

Museum of Hawaiian Music and Dance; Committee Extension. (SB2569, HD1; Act 48) Extends the existence of the Museum of Hawaiian Music and Dance Committee until June 30, 2009, its interim reporting deadline to September 15, 2008, and the final report deadline to twenty days prior to the convening of the Regular Session of 2009.

Page 26 Economic Development and Taxation II. Historic Preservation

Archaeological Data Survey. (HB2955, HD1, SD1) Establishes a Hawaii archaeological data survey as an online database program to be developed and maintained by the State of Hawaii Museum of Natural and Cultural History. Provides that the archaeological data survey shall not include any information required to remain confidential under federal, state, or county laws, rules, or regulations. Authorizes the Museum, in consultation with the Office of Hawaiian Affairs and the State Historic Preservation Division of the Department of Land and Natural Resources, to withhold, after consultation with any affected governmental agencies or private individuals or organizations, information from the database if a disclosure may pose a threat to a site or artifact.

Historic Preservation; Historic Buildings; Photographs. (HB2486, SD1, CD1) Requires, as a condition of county permit approval for demolition, construction, or other alteration of a historic building, proof that the Department of Land and Natural Resources has been provided with archival quality black and white photographs of:

• Any building that is eligible for listing or is listed on the Hawaii or National Register of Historic Places; or

• Any privately owned building over 50 years old.

State Historic Preservation Officer; Qualifications. (SB2644, SD1, HD1, CD1) Requires the State Historic Preservation Officer to be a qualified historic preservation professional who meets the professional qualification standards established by the United States Secretary of the Interior, with professional experience in Hawaii. Requires the Governor to advise the President of the Senate and the Speaker of the House of Representatives of the identity and qualifications of the person appointed as the State Historic Preservation Officer.

III. Identity Theft Projection

Harassment by Impersonation. (SB2456, SD2, HD1, CD1) Establishes a misdemeanor offense of harassment by impersonation, which is committed if a person poses as another person, without authorization, and transmits any personal information of the person to another by oral, written, or electronic means, with the intent to harass, annoy, or alarm any person.

Personal Information; Identity Theft Protection. (SB2803, SD1, HD1, CD1) Implements recommendations of the December 2007 report of the Identity Theft Task Force to protect the security of personal information collected and maintained by state and county agencies.

• Requires each government agency to designate an agency employee with policy and oversight responsibilities for protection of personal information, by September 1, 2009;

• Establishes an Information Privacy and Security Council (Council) within the Department of Accounting and General Services (DAGS), with extensive reporting requirements, and requires that members be appointed by September 1, 2008;

Economic Development and Taxation Page 27 • Requires the Council to identify best practices to assist government agencies, by March 31, 2009;

• Establishes extensive reporting requirements and deadlines for government agencies that maintain personal information systems, by January 1, 2009;

• Amends the effective date of the Social Security Number Protection law originally enacted in 2006 to take effect July 1, 2009;

• Requires the Council to develop recommended practices and procedures to provide guidance to information technology managers in all government agencies relating to laptop security, removable data storage devices, and communication devices used to remotely access applications installed on state or county networks, by December 31, 2008;

• Establishes third party personal information use contractual provisions to protect the use and disclosure of personal information, including technological safeguards, mandatory training on security awareness topics, confidentiality agreements, retention requirements, disclosure requirements, effective September 1, 2008;

• Requires all government agencies that collect, maintain, or disseminate documents containing personal information subject to disclosure, to develop and implement a plan to protect and redact personal information, specifically social security numbers, contained in existing hardcopy documents before making documents available for public inspection; requires written report to the Legislature, by September 1, 2008;

• Requires each agency to prepare a budget for protection and redaction of personal information for submittal as part of budget process, by December 31, 2008;

• Requires all government agencies that collect, maintain, or disseminate documents containing personal information subject to disclosure, to develop a written plan to eliminate the unnecessary collection and use of social security numbers, by December 1, 2008; • Requires each government agency to submit to the 2009 Legislature a funding request for FY 2009-2010 to implement the agency's plan to eliminate the unnecessary collection or use of social security numbers;

• Requires the lead state and county agencies with primary responsibility for human resource functions to develop written guidelines detailing recommended practices to minimize unauthorized access to personal information relating to personnel recruitment, background checks, testing, employee retirement and health benefits, time reporting and payroll issues, by January 1, 2010;

• Requires all government agencies to develop a written policy for notification of any security breach of personal information and submit their policy to the Attorney General, appropriate corporation counsel, or county attorney for review and comment, by September 1, 2009; requires annual reviews by December 31, 2010; and

• Establishes within the Office of the Auditor the five-member Identity Theft Task Force Working Group to provide continuity from the Identity Theft Task Force, by July 1,2008; sunsets Working Group June 30, 2009.

Page 28 Economic Development and Taxation

IV. Small Businesses

Hawaii Community Development Authority; Kakaako Small Business Representatives. (SB3166, HD1, CD1) Provides that of the nine members of the Hawaii Community Development Authority appointed by the Governor from the lists provided by the President of the Senate and Speaker of the House of Representatives, at-large by the Governor, or as county members recommended by the local governing body, at least two members shall be designated as small business representatives whose purpose, among other things, is to vote on matters before the Authority that affect small businesses. Requires the small business representatives to be owners or active managers of a small business with its principal place of operation in the district. Clarifies that the small business representatives shall not be prohibited from voting on any matter, provided that the matter is not limited to solely benefiting the specific interest of that member.

Small Business; Rights; Administrative Rules Impact. (HB2781, HD2, SD2, CD1) Establishes 16 specific "rights" for small businesses in interaction with and regulation by state agencies. Requires government agencies to perform and include in their small business impact statement for proposed rules, a more rigorous examination and justification of rules that impose standards more stringent than those mandated by any comparable or related federal, state, or county laws. Requires the Small Business Regulatory Review Board to convene a working group to review the process and procedures related to rulemaking and to submit its findings to the 2009 Legislature.

V. Taxation

Conforming Hawaii Income Tax Law to the Internal Revenue Code. (HB3191, HD1, SD2; Act 93) Amends Hawaii's income tax law to conform with changes to the Internal Revenue Code effective as of 12/31/07. Applies to taxable years beginning after 12/31/07.

General Excise Tax; Service-to-Service Wholesale Transactions; Warranty Obligations. (HB1755, HD1, SD1; Act 89) Clarifies that the reduced general excise tax rate of 0.5 per cent on service-to-service wholesale transactions applies to dealers who furnish goods or services to a purchaser of tangible personal property that fulfills a warranty obligation of the manufacturer of the tangible personal property.

Income Taxation; Mandatory Income Tax Credit. (SB2153, SD1, HD1; Act 58) Provides a one- time refundable general income tax credit of $1 for each qualified exemption for resident individual taxpayers to meet the mandatory requirement of article VII, section 6, of the Hawaii Constitution. Prohibits convicted felons and those taxpayers who were committed to a correctional facility for the full taxable year from claiming the general income tax credit. The claim for the general income tax credit shall be allowed for the 2008 taxable year.

Integrated Tax Services and Management Special Fund; Established; Uses of and Expenses for the Integrated Tax Services and Management Special Fund; Appropriation; Performance- based Contracts; Annual Reporting Requirement; General Fund Repayment; Electronic Filing Requirement. (HB1412, HD1, SD1, CD1) Establishes the Integrated Tax Services and Management Special Fund in an effort to improve taxpayer services by encouraging

Economic Development and Taxation Page 29 electronic filings. The Integrated Tax Services and Management Special Fund may be expended for purposes related to operating the Integrated Tax Services and Management System's performance-based contracts, post-implementation revenue-generating initiatives, tax collection capabilities, implementing the Streamlined Sales and Use Tax Agreement, and to support the Department of Taxation's staffing requirements. Authorizes the Director of Finance to expend the Integrated Tax Services and Management Special Fund for central service expenses of the government. Mandates that the Integrated Tax Services and Management Special Fund is not responsible for its pro rata share of administrative expenses incurred by the applicable department that is responsible for the operations supported by the Integrated Tax Services and Management Special Fund. Authorizes the Director of Taxation to retain and deposit an appropriated amount of the income, general excise, and use taxes collected and subsequently deposited in the state treasury to the credit of the Integrated Tax Services and Management Special Fund in order to successfully carry out the purposes of the Special Fund. Requires the Department of Taxation to utilize performance-based contracts for the purposes of implementing and administering the City and County of Honolulu Surcharge Tax and the Streamlined Sales and Use Tax Project. Requires the Director of Taxation to provide an accounting and report on the efficiency of the performance-based contracts to the Legislature no later than twenty days prior to the convening of every Regular Session. Appropriates $2,900,000 out of the general fund in fiscal year 2008-2009 for the Department of Taxation to establish the Integrated Tax Services and Management Special Fund. Requires the Department of Taxation to repay the general fund $2,900,000 no later than June 30, 2009. Authorizes the Department of Taxation to allow for all taxpayers to file their tax returns electronically and to require certain taxpayers to file their tax returns electronically.

VI. Miscellaneous

Aloha Stadium; Authority Members. (SB2434, HD1, CD1) Revises the Stadium Authority membership and appointment procedures by:

• Increasing the membership from nine to eleven members, and establishing that there shall be nine voting members;

• Requiring that of the voting members, the Governor shall appoint three directly, three from a list of nominees from the general public submitted by the President of the Senate, and three from a list of nominees from the general public submitted by the Speaker of the House of Representatives; and

• Establishing a schedule for filling future vacancies.

Aloha Stadium; Emergency Appropriation. (HB3037; Act 2) Appropriates $271,852 from the Stadium Special Fund to pay fiscal year 2007-2008 increases in electricity, sewer, refuse, and insurance premium payments for Aloha Stadium.

Commercial Activities on Ocean Waters. (SB2196, SD2, HD2, CD1) Adds to the Department of Land and Natural Resources regulatory functions, regulation over commercially permitted use of both governmental and private boating facilities and private marinas; provided that

Page 30 Economic Development and Taxation no new permit shall be required for, or new regulation shall apply to, activities permitted or regulated under any other state law.

Resolutions Adopted

I. Economic Development

Auditor; Department of Business, Economic Development, and Tourism; Audit. (SCR212, SD2) Requests the Auditor to investigate, with a report to the 2009 Legislature:

• Procurement and expenditure practices of the Department of Business, Economic Development, and Tourism (DBEDT), the High Technology Development Corporation, the Hawaii Strategic Development Corporation, and any programs and entities under each respective corporation; and

• Programs within DBEDT, including strategic marketing and support, overseas offices, creative industries, energy and strategic industries, the foreign trade zone, and general support for economic development.

Auditor; Natural Energy Laboratory of Hawaii; Audit. (SCR96, SD1) Requests the Auditor to conduct, with a report to the 2009 Legislature, a program, performance, and financial audit of the Natural Energy Laboratory of Hawaii Authority to include:

• General operations, including compliance with public agency meetings and records requirements;

• Comprehensive plans to secure funding from federal and private sources to sustain fiscal viability; and

• Internal budgeting and fiscal controls.

International Interfaith Conference; All Believers Network. (SCR5, SD1) Supports the efforts of the All Believers Network to establish the Statewide Interfaith Steering Committee, with representatives of the various religious and interfaith organizations and groups in Hawaii, to:

• Develop and promote interfaith activities to further relations between various religious faiths;

• Explore the possibility of organizing a major international interfaith conference in Hawaii to take place by 2011; and

• Convey to the Legislature no later than December 2010, the results of its efforts to organize a major international interfaith conference in Hawaii to take place by 2011.

State Foundation on Culture and the Arts. (SCR225, SD1; SR132, SD1) Acknowledges the State Foundation on Culture and the Arts (SFCA) and the State Art Museum in furthering the work of the SFCA through its programs, services, and exhibitions of the state art collection. Requests that as agencies move from the No. 1 Capitol District Building, the vacated space

Economic Development and Taxation Page 31 be assigned to the SFCA and the State Art Museum, and when the SFCA and the Museum occupy the majority of square footage in the building, the building be renamed "The ".

Tartan Day in Hawaii; Designation. (HCR81, HD1) Recognizes the contributions that were made by the people of Scottish heritage to Hawaii and supports the designation of April 6 of every year as Tartan Day in Hawaii.

University of Hawaii; Degree Programs for Sports and Entertainment Management. (SCR70) Requests the Legislative Reference Bureau (LRB) to study the feasibility of establishing certificate, undergraduate, graduate degree, and continuing education programs at the University of Hawaii in Sports and Entertainment Management. Requests the LRB to analyze economic and non-economic benefits, to examine similar programs of other colleges or universities, including the University of South Carolina, and to submit a report of its findings and recommendations to the 2009 Legislature.

II. Taxation

General Excise Tax; Commissions on Imported Tangible Personal Property. (SR89, SD1) Requests the Department of Taxation to examine and report on the fiscal impact and payment of general excise taxes that result from commissions earned by manufacturers' sales representatives from sales of imported tangible personal property purchased by a consumer directly from the manufacturer. Requests the Department of Taxation to report its findings to the Legislature no later than twenty days prior to the convening of the 2009 Regular Session.

Taxation; Tax Credits and Exemptions. (SR88, SD1) Requests the Department of Taxation to report the fiscal impact and rate of usage by taxpayers of various tax credits and exemptions under the state income, general excise, public service company, and liquor tax laws.

Page 32 Economic Development and Taxation EDUCATION

The Committee on Education has jurisdiction over programs relating to early education, public schools, continuing education, the public libraries, the University of Hawaii, community college system, private higher education bond financing, and other education matters relevant to higher education.

Highlights

Ensuring the appropriate education for our keiki, at all grade levels, remains an issue of the highest priority in the State. In particular, early childhood education has emerged as an area requiring increased attention and support, as the earlier children begin learning, the better they perform once they reach kindergarten. The Legislature has made great strides through the passage of SB2878, SD2, HD2, CD1, which establishes the Early Learning Council that shall be responsible for developing and administering the Keiki First Steps early learning system to ensure the provision of a spectrum of high-quality early learning opportunities for children in the State from birth to kindergarten, beginning with underserved or at-risk children. Among other things, the Early Learning Council shall also be responsible for coordinating efforts to develop a highly-qualified, stable, and diverse early childhood education workforce, which includes addressing the teacher shortage issue, as well as providing for continuing education for teachers. An additional component of Keiki First Steps is a grant program to award funds to publicly- or privately-run center-based programs for 3- or 4-year-old children and family child care programs, family-child interaction learning programs, and other early learning programs and services regardless of the age of the children served. Funding to support the Council was provided for in the budget.

In order to address the ongoing shortage of highly qualified teachers in the State, funds were appropriated pursuant to SB3252, SD2, HD2, CD1, to support the establishment of Professional Development Schools for Hawaii public school teachers. Professional Development Schools, wherein a public school enters into formal agreements with teacher education programs that address standards-based education and teacher preparation, equip teachers with resources and skills necessary to ensure that all students attain their full potential. These schools include a mentoring and induction component as well. Support was also provided pursuant to SB3252, SD2, HD2, CD1, through the appropriation of funds to assist public school teachers and teacher candidates participating in preparatory courses, tutorials, or programs for the PRAXIS examinations to become highly qualified under the No Child Left Behind Act.

The Legislature acknowledges the need for the State to commit resources and other support as an investment in higher education to ensure the development of a qualified and trained workforce to support the current and future needs of the State. Funding is a key issue for the University of Hawaii for the provision of quality academic programs taught by capable educators and including strong student support that will allow the State to reap wide- reaching, long-term benefits. HB2978, HD1, SD2, CD1, seeks to ensure the allocation of resources in the most effective and efficient manner throughout the University of Hawaii System. HB2978, HD1, SD2, CD1, also establishes a task force within the University of Hawaii to assist the University in developing a budgetary system that includes an equitable, consistent, and responsive funding formula for the distribution of fiscal resources to the various campuses.

Education Page 33

The University of Hawaii System, as the only public postsecondary educational institution in the State, maintains a tremendous responsibility in not only providing quality higher education to its students, but also in being held accountable to the public. Recently, much has been covered and questioned by the media regarding the University of Hawaii and its management, operations, and facilities. The lack of disclosure of information on the salaries of new hires at the University of Hawaii and for raises for top administrators has been and continues to remain a point of contention. SB2263, SD2, HD1 requires the Board of Regents of the University of Hawaii to publicly disclose in open meetings, for purposes of public comment, information regarding compensation offered to newly hired employees and changes in compensation offered to existing employees in executive/managerial positions in the University of Hawaii System filled by excluded employees, as well as all documents regarding expenditures made by the Board. It is further required that all expenditure requests, proposals, and any other budgetary documents used by the Board at an open meeting shall be made available to the public at least six calendar days before the meeting.

Bills Passed

I. Lower Education

FACILITIES

DOE; School Facilities; Facilities Alignment Commission. (HB2972, HD1, SD2, CD1) Establishes the Facilities Alignment Commission to develop criteria for the selection of public schools to be consolidated or closed by 12/31/09, and to recommend schools for consolidation or closure by 2/28/10. Requires the Board of Education to comply with these recommendations if the Legislature does not disapprove of them in their entirety. Requires the Facilities Alignment Commission to develop a school facilities plan, by 6/30/09, which shall be based on the Department of Education's assessment of the projected student enrollment for specified schools.

PROGRAMS AND SERVICES

DOE; After-School Plus Program Revolving Fund. (HB2369; Act 33) Limits funds to be deposited into the After-school Plus Program Revolving Fund to those funds that are collected as fees or charges for participation in the program and the interest earned on the revolving fund deposits.

DOE; DHS; Early Childhood Education. (SB2878, SD2, HD2, CD1) Establishes an early learning system known as "Keiki First Steps" to provide a spectrum of high-quality early learning opportunities for children statewide from birth until they enter kindergarten, with priority given to underserved or at-risk children. Establishes the Early Learning Council to develop and administer Keiki First Steps. Requires the Council to report to the Legislature on its progress and the status of the early learning system in the State prior to each regular session. Establishes the Keiki First Steps Grant Program, to be developed by the Council and administered by the Department of Human Services, to increase early learning opportunities

Page 34 Education that meet high standards of quality through the awarding of grants to publicly- or privately- run center-based programs for three- or four-year-old children, and family child care programs, family-child interaction learning programs, and other early learning programs and services regardless of the age of the children served. Establishes the Keiki First Steps Trust Fund to support the early learning system. Repeals the law requiring the Department of Education to develop a plan for quality voluntary early education in the State for children ages four to six years. Establishes the Pre-Plus Program to expand access to affordable and high-quality early childhood education for three to four-year-old children from low-income families by allowing preschool programs to be established on public school campuses through public-private partnerships. Promotes the development of early learning facilities. Requires the Department of Education to report to the Legislature and the Early Learning Council prior to each regular session on the number of classrooms that are suitable for programs and services in the early learning system and the cost of renovating such classrooms to meet the standards of programs and services in the early learning system.

DOE; Online Learning Task Force. (HB2971, HD1, SD2) Requires the Department of Education to adopt and implement recommendations and strategic goals contained in the Online Learning Task Force's 2007 report. Requires the assessment of the digital literacy of teachers, students, and other personnel in order to ensure maximum success of the online learning programs. Requires the Department of Education to implement the enumerated recommendations in consultation with the full Task Force recommendations. Requires the Department of Education to systematically establish the infrastructure for online learning based on institution type, in the following order of priority: high schools (including charter high schools), middle and elementary schools, adult community schools, charter middle and elementary schools, the University of Hawaii System (particularly the community colleges), private secondary and post-secondary institutions (for a fee), and adult populations for remedial education and upgrading of workforce skill. Repeals the Act on 6/30/13.

DOE; SPED; Due Process; Hearings. (SB2004, SD2, HD2, CD1) Extends from ninety to one hundred eighty days from the date of a unilateral special education placement, the time allowed for parents, guardians, or the Department of Education to request an impartial hearing regarding reimbursement for the costs of a child's placement. Requires the Department of Education to exercise oversight and monitoring over a child who has undergone a unilateral special education placement as soon as is practically possible. Requires the Department of Education to submit an annual report to the Legislature on the total number of requests for such due process hearings.

DOE; SPED; Power of Attorney. (SB2879, SD2, HD1, CD1) Establishes a power of attorney for special education for an adult student with a disability, as well as the process for the execution and revocation of such power of attorney. Establishes a process by which to appoint an educational representative for an adult student who lacks decisional capacity to provide informed consent. Establishes the duties and roles of an agent and educational representative. Clarifies the authority of a guardian of an adult student.

DOE; UH; Students; Workers' Compensation. (HB2441; Act 24) Requires the State to provide workers' compensation coverage for students who participate in school-approved work-based learning programs that are sponsored by the Department of Education or the University of Hawaii, regardless of whether the work performed by the students is for a private or public employer.

Education Page 35

SPECIAL PURPOSE REVENUE BONDS

Island Pacific Academy; SPRBs. (HB2614, SD1; Act 73) Authorizes the issuance of special purpose revenue bonds, not to exceed $30,000,000, to assist Island Pacific Academy in financing and refinancing the planning, construction, improvement, and equipping of its educational facilities.

Maui Preparatory Academy; SPRBs. (HB2547, SD1; Act 74) Authorizes the issuance of special purpose revenue bonds, not to exceed $25,000,000, to assist Maui Preparatory Academy in financing and refinancing the planning, construction, and equipping of its educational facilities.

TEACHERS

BOE; Substitute Teachers; Wage Adjustments. (SB2652, SD2, HD2, CD1) Requires the Board of Education to provide wage adjustments for substitute teachers, beginning 7/1/08, that are comparable to the across-the-board wage adjustments negotiated for teachers in bargaining unit 5, subject to legislative approval. Authorizes the Board of Education to adjust the hours, benefits, and other terms and conditions of employment for substitute teachers.

DOE; Emergency Hires; Teacher Licensure Requirements. (SB2163, SD1, HD1, CD1) Authorizes unlicensed individuals to be employed by the Department of Education on an emergency basis for a period of no more than three years, or four years for individuals hired prior to July 1, 2008.

DOE Employees; Probationary Period. (SB2449, SD2, HD2, CD1) Repeals the law establishing a probationary period for new teachers, principals, and vice-principals of the Department of Education to enable probationary periods negotiated through the collective bargaining process to be adopted without having to make a statutory amendment.

HTSB; Membership; Powers and Duties. (SB2663, SD2, HD2, CD1) Increases the membership on the Hawaii Teacher Standards Board to fourteen members, specifying that at least seven members are licensed teachers regularly engaged in teaching, at least one of which is a teacher who has completed a nontraditional teacher education program. Defines the term "teachers regularly engaged in teaching" to mean teachers, school counselors, or school librarians who are not assigned the duties of a school administrator. Requires the Governor to appoint the members of the Hawaii Teacher Standards Board from a list of qualified nominees submitted by the exclusive representative for public school teachers; the exclusive representative for public school administrators; any state chapter of a national professional organization that represents teachers or school administrators; and the Hawaii Association of Independent Schools for private school teachers. Specifies that membership on the Board shall reflect representation of elementary and secondary school personnel from Oahu and the neighbor islands approximating the proportion of teachers and administrators who work in these areas. Requires the teacher members on the Board to be licensed in subject matter and grade levels taught in public schools. Requires the school administrator members of the Board to be administrators assigned to elementary, middle, and high schools.

Page 36 Education Authorizes the Hawaii Teacher Standards Board to coordinate an effort to create a network incorporating the teacher education institutions and the Department of Education to support the free interchange of information valuable to all participating organizations.

Requires the Hawaii Teacher Standards Board to submit an annual report to the Governor and the Legislature on the Board's operations, including income and expenditures, and a summary report with data from the previous five years of the Board's accomplishment of objectives, efforts to improve or maintain teacher quality, and efforts to keep its operations responsive and efficient.

HTSB; Teacher Licensure; Sexual Offenses. (SB2080, SD2, HD2, CD1) Authorizes the Hawaii Teacher Standards Board to suspend the license of a teacher who has been convicted of certain sexual offenses, upon receipt of a judgment of conviction, and requires the Board to initiate proceedings to permanently revoke the teacher's license. Requires the Department of Education, and any independent school agency or charter school agency in the State, to notify the Board of the name of any teacher convicted of specified sexual offenses. Requires the Board to notify the Clerk of Court when an individual who is being tried by the court for a sexual offense is a teacher. Establishes procedures and requirements for the teaching license revocation process, including administrative hearing and notice requirements, reconsideration and appeal procedures, and factors the Board may consider in reviewing a request for reconsideration, such as a reversal of the conviction, the nature, type and severity of the conduct that led to the conviction, and whether the conduct indicates an actual risk to the health, safety, or well-being of children within the school system.

Teacher Recruitment and Retention; Appropriation. (SB3252, SD2, HD2, CD1) Appropriates funds for public school teachers and teacher candidates to take PRAXIS preparatory courses, tutorials, or programs to become highly qualified under the No Child Left Behind Act and to establish Professional Development Schools for Hawaii public school teachers.

II. Higher Education

UH; Board of Regents; Candidate Advisory Council. (SB2668, SD2, HD1, CD1) Renames the Candidate Advisory Council for the Board of Regents of the University of Hawaii to the Regents Candidate Advisory Council. Requires at least twelve members of the Board of Regents of the University of Hawaii to reside in the geographic areas that they represent. Requires the Governor to notify the Council of vacancies on the Board of Regents within ten days of receiving notification of the resignation, death, or removal of a member, and requires the Council to submit names of candidates for the vacant seat within sixty days following the vacancy. Clarifies the requirement for the Council's submission of names of candidates for the Board of Regents to the Governor. Makes confidential all information required by the Council regarding Board of Regents candidates.

UH; Board of Regents; Disclosure. (SB2263, SD2, HD1) Requires the Board of Regents of the University of Hawaii to disclose the compensation proposed for each new employee who is employed in an executive and managerial position in the excluded employee category, and changes in compensation proposed for existing employees in open meetings for purposes of public comment.

Education Page 37 Requires the Board of Regents to disclose all documents regarding expenditures and changes to expenditures in open meetings for the purpose of public comment and requires that all expenditure requests, proposals, and other budgetary documents used by the Board at an open meeting be made available to the public at least six calendar days before the meeting.

UH; Budgeting. (HB2978, HD1, SD2, CD1) Requires the University of Hawaii to develop and provide to the Legislature an incentive and performance report and plan in November of each year beginning in 2008. Establishes a task force within the University of Hawaii to assist the University in developing a budgetary system that includes an equitable, consistent, and responsive funding formula for the distribution of fiscal resources to the various campuses. Requires the University of Hawaii to hire an independent higher education finance expert to work with the task force in developing the funding formula. Requires the task force to submit to the President of the University of Hawaii, for approval, a report of its progress and any findings and recommendations, including those of the consultant, and, upon approval, to submit such report to the Legislature prior to the Regular Session of 2009.

UH; Commercial Enterprises Revolving Fund. (HB2245, HD1, SD2, CD1; Act 106) Authorizes the transfer of university funds, except general funds and funds from the University of Hawaii Tuition and Fees Special Fund, to the University of Hawaii Commercial Enterprises Revolving Fund to finance new commercial enterprises. Prohibits loans in excess of ten percent of the University of Hawaii Tuition and Fees Special Fund moneys to the University of Hawaii Commercial Enterprises Revolving Fund for financing the establishment of new enterprises. Sunsets on 6/30/11.

UH; Global Youth Center. (HB2045, SD1; Vetoed 4/29/08) Establishes a Global Youth Center at the University of Hawaii to generate and link an international framework to enable youth from around the world to become actively engaged in issues such as the attainment of world peace, environmental sustainability, and human and economic productivity for future generations. Requires the Global Youth Center to collaborate with Hawaii's leaders in education, politics, and business, at the East-West Center, and from appropriate international organizations. Specifies goals and objectives of the Global Youth Center that include providing youth from around the world an opportunity to identify and address major global issues affecting present and future generations; providing training in effective communications on the issues of concern to youth and to facilitate debate on global issues; developing educational programs and conducting original research on global issues; bringing together diverse people and organizations to address world problems; and serving as an international clearinghouse for information on policies affecting youth around the world.

UH; Institute of Marine Biology; Appropriation. (SB2482, SD2) Extends the lapse date from June 30, 2008 to June 30, 2010 for unencumbered appropriations made for the planning, design, and construction of a modern laboratory and office complex on Coconut Island for the Institute of Marine Biology of the University of Hawaii.

UH; Preaudit of Payments. (HB2163, HD2, SD1; Act 37) Requires the University of Hawaii to preaudit all proposed payments totaling $10,000 or more to determine the propriety of expenditures and compliance with applicable laws, executive orders, and rules as may be in effect.

Page 38 Education

Resolutions Adopted

I. Lower Education

BOE; DOE; School Buses; Seat Belts. (HCR71, HD2) Requests the Board of Education to compile and analyze data on all school bus accidents in the State in the past five years, including but not limited to injuries sustained and costs to the Department of Education, and review and analyze the Department of Education's current policy toward seat belt use on school buses. Requests the Department of Education to submit a report to the Legislature prior to the Regular Session of 2009.

DOE; DOH; Anger Management Program; Study. (HCR126, HD1, SD1) Requests the Department of Education and the Department of Health to jointly study the feasibility of establishing an anger management program modeled after substance abuse programs to provide students who commit acts of violence or harassment at their schools with the tools they need to change their behavior. Requests the Department of Education and the Department of Health to report to the Legislature prior to the Regular Session of 2009 on proposals for anger management programs and projected costs of the proposed programs.

DOE; DOH; Procurement. (SCR134, SD2, HD1) Urges the Department of Education and the Department of Health in their respective procurements to practice "buy local" to the maximum extent possible to encourage sustainability. Encourages the Department of Education and the Department of Health to utilize compostable food ware products to promote a stronger sustainable future.

DOE; Extended School Year or School Hours; Study. (SCR72, SD1) Requests the Department of Education to conduct a feasibility study to determine whether an extension of the school day that is designed to provide increased academic and sociocultural opportunities for students in kindergarten through grade twelve is an affordable and sound investment for the State; and to examine the benefits and detriments involved in increasing the number of days of instruction in the current school year by ten days, twenty days, and any other number of days as deemed appropriate. Requests the Department of Education to report to the Legislature prior to the convening of the Regular Session of 2009 with information on the average number of classroom hours and instruction days for students in Hawaii, the entire nation, and industrialized nations whose academic performance exceeds that of the United States; the financial cost to districts and states that have an extended school day; the content offerings of extended school day programs; what could be learned by the students during the additional days of instruction; potential schedules for extending the days of instruction in the school year; the number of hours of learning involved in an increased schedule; and the fiscal and non-fiscal impacts on the State, the Department of Education, the teachers and support staff, and the students and their families.

DOE; Highly Qualified Teachers; Curricular Materials. (SCR111) Requests the Department of Education to develop curricular materials that reflect the Hawaii standards to assist a teacher who has to temporarily teach a subject matter for which the teacher is not highly qualified, so that students will receive the appropriate learning materials. Requests that the Department of Education begin developing curricula in fields where there are the fewest highly qualified teachers. Requests the Department of Education and the Board of

Education Page 39 Education to continue to support programs to assure that all teachers become highly qualified. Requests the Department of Education to report to the Legislature prior to the Regular Session of 2009.

DOE; Kapaa Library; Relocation. (HCR265) Requests the Department of Education to work with the County of Kauai, Kapaa community members, and appropriate state agencies to explore the feasibility of and develop a plan for relocating the Kapaa Public Library to an inland location near or adjacent to the Kapaa County Park's sports field and the Army National Guard Facilities. Requests that the Department of Education consider incorporating into the plan an expanded technology center and community center facilities for meetings and community gatherings; the swapping of county and state lands or some other agreement that provides the County of Kauai the right to use the land under the existing Kapaa Public Library; and the design and use of the new library as a potential disaster relief shelter for use during times of emergency. Requests the Department of Education to report to the Legislature prior to the Regular Session of 2009.

DOE; Kihei High School; Financing Agreement. (SCR158, SD1) Requests the Department of Education to pursue a financing agreement to fund the construction of the new Kihei High School pursuant to section 37D-2, Hawaii Revised Statutes. Requests the Department of Education to consider the design-build approach for construction of the new Kihei High School.

DOE; Model Pilot Complex. (SCR115, SD1, HD1) Requests the Department of Education to establish at least one three-year pilot model complex to include one high school, a middle school, and at least one elementary school. In year one, the complex shall identify Department rules and policies that most impede its ability and authority to promote effective learning for its students. In year two, after consultation with the Department of Education and applicable collective bargaining units, and after consideration of health and safety concerns, the complex shall be allowed to operate free of the identified and agreed upon department rules and policies, if permitted by law. In year three, the complex shall assess and evaluate the impact of the pilot project and report to the Legislature prior to the Regular Session of 2011.

DOE; Office of Human Resources; Advisory Group. (SCR114, SD1) Requests the Department of Education to establish an advisory group to assist its Office of Human Resources in implementing the recommendations made by Accuity, LLP, in its comprehensive assessment of the policies, procedures, and operations of the Office of Human Resources, and to further streamline and improve the effectiveness and efficiency of the Office of Human Resources. Requests the advisory group to report to the Legislature prior to the Regular Sessions of 2009 and 2010.

DOE; Pahoa High and Intermediate School; Helene H. Hale. (SCR57) Requests the Department of Education to dedicate the new gymnasium at Pahoa High and Intermediate School in honor of former Representative Helene H. Hale, by changing the name of the gymnasium to "Helene H. Hale Gymnasium" and to place a plaque near the entrance of the gymnasium explaining Helene Hale's contributions to the Pahoa community, the Big Island, and the State of Hawaii.

DOE; Project Graduation. (SCR220) Requests the Department of Education to consider funding Project Graduation training activities through the Department's driver education

Page 40 Education funds, as allowed by statute. Requests the Department of Education to report to the Legislature prior to the Regular Session of 2009 on how the Department of Education is continuing Project Graduation training after the cessation of its federal grant.

DOE; Shaded Play Areas. (SCR88, SD1) Requests the Department of Education to develop a prototype model or guidelines for schools, community groups, or volunteer organizations to follow when installing or creating shaded play areas in public schools. Requests the Department of Education to report to the Legislature prior to the Regular Session of 2009.

DOE; Truancy Rate Reduction; Working Group. (SCR74, SD1) Requests the Department of Education to convene a working group or incorporate a working group into an existing group to study the truancy problem in public schools and review and develop guidelines for lowering the truancy rate and increasing academic success in the public school system. Requests that the working group develop guidelines regarding truancy that delineate how schools can reduce the truancy rate and increase academic success. Requests the working group to report to the Legislature prior to the Regular Sessions of 2009 and 2010, with the final report including the guidelines, a timeline for implementation of the guidelines, and information on what data are or will be collected to determine if the truancy and dropout prevention activities have been effective.

DOE; Vegetarian/Vegan School Lunches. (SCR84, SD1) Requests the Department of Education and the Hawaii Public School Food Services to develop nutritionally-sound public school menu plans that include vegetarian and vegan meals. Requests the Department of Education to conduct training and workshops for cafeteria managers and workers to increase awareness of the benefits of and options for providing vegetarian and vegan public school meals that are nutritious and well-balanced. Requests the Department of Education to post on its website a list of schools that provide vegetarian and vegan menu options. Requests the Department of Education to report to the Legislature prior to the Regular Session of 2009.

II. Higher Education

UH; Applied Archaeology; DLNR; Archaeology Working Group. (SR138, SD1) Encourages the University of Hawaii at Manoa to develop and implement a Master of Arts program in Applied Archaeology and to expand this program to the neighbor island campuses, including the planned graduate program in Cultural Resources Management that is being developed at the University of Hawaii at Hilo. Requests the State Historic Preservation Division of the Department of Land and Natural Resources to reconvene the 2006 Archaeology Working Group. Requests that the 2006 Archaeology Working Group should consist of the original members, as well as a cross-section of the State's historic preservation community; submit the recommendations of the Original Working Group to the State Historic Preservation Division of the Department of Land and Natural Resources for possible action; continue its work on providing findings and recommendations regarding ongoing and anticipated issues relating to the discovery and preservation of archaeological and human burial sites and related issues; identify and make recommendations to the Legislature on any proposed professional development and certification requirements for personnel and contractors of the State Historic Preservation Division and potential training and educational opportunities

Education Page 41 for the members of the Island Burial Council; and report to the Legislature prior to the Regular Sessions of 2009 and 2010.

UH; Cancer Research Center of Hawaii. (HCR294) Urges the University of Hawaii and supporting members of the community to move forward as expeditiously as possible to implement the plans that have been developed for the construction of the Cancer Research Center of Hawaii in Kakaako.

UH; College of Social Sciences; Funding Utilization/Student Achievement; Working Group. (SCR118, SD1, HD1) Requests the Public Policy Center of the College of Social Sciences of the University of Hawaii, in concert with the Department of Education, to convene a working group to propose areas for improved Department communication to the public and increased transparency about its spending and expenditures, and an implementation plan to carry this out. Requests the working group to develop recommendations for a more effective and transparent public understanding of the funding for Department of Education programs and services. Requests the Hawaii Educational Policy Center to study existing data that compares Hawaii with Massachusetts, Minnesota, New Hampshire, Connecticut, Kansas, and Washington (or five other "peer" states) in several enumerated areas. Requests the Hawaii Educational Policy Center to report to the Legislature prior to the Regular Session of 2009 and 2010.

UH; CTAHR; Multipurpose, Multi-user Processing Facility; Study. (HCR357, HD1) Requests the College of Tropical Agriculture and Human Resources of the University of Hawaii to study the feasibility of constructing a multipurpose, multi-user processing facility on the land in the Ewa, central Oahu area being offered to the Hawaii Agriculture Research Center for the production of value-added products that make use of locally-grown agricultural products. Requests the College of Tropical Agriculture and Human Resources to consider in its study the feasibility of using a large, multipurpose processing facility that serves multiple users and produces different value-added agricultural products; the type of owner-operator that would be appropriate for the facility; the types of packaged or finished value-added products that may be processed by the facility; the local, national, and international markets that may be targeted for products of the processing facility; the latest emerging technologies that may be used in processing and marketing Hawaii agricultural products; and any information that may be provided by the National Conference of State Legislatures on related issues. Requests the College of Tropical Agriculture and Human Resources to consult with various departments, organizations, and stakeholders in the agriculture industry. Requests the College of Tropical Agriculture and Human Resources to report to the Legislature prior to the Regular Session of 2009.

UH; Hawaii Agriculture Diagnostic Center; Survey. (HCR116, SD1) Requests the Agricultural Diagnostic Service Center of the University of Hawaii, in consultation with the College of Tropical Agriculture and Human Resources, the Natural Resources Conservation Service, and any other appropriate public or private entities, to survey the information needs of Hawaii's agricultural industry, assess whether the Hawaii Agriculture Information Center is able to meet the information needs of Hawaii's agricultural industry, and report to the Legislature prior to the Regular Session of 2009.

UH; High Technology Development Center. (HCR312, SD1) Supported the development and growth of Hawaii's high technology industrial sector by urging the University of Hawaii to execute an extension of its land lease agreement with the High Technology Development

Page 42 Education Corporation for a period of five years to afford the Corporation time to find and replace or develop and construct a new facility in Manoa to enable continued operations at the Manoa Innovation Center.

UH Hilo; CAFNRM; Kulani Correctional Facility Programs; Study. (HCR260, HD1) Requests the College of Agriculture, Forestry, and Natural Resource Management of the University of Hawaii, in collaboration with the Department of Agriculture and Hawaii Community College, to conduct a study on the programs developed by Kulani Correctional Facility that would aid in the revitalization of state agriculture and provide workforce re-entry and job training for Kulani Correctional Facility inmates. Requests the Department of Agriculture to explore alternative sources of funding, including federal funds from agencies such as the United States Department of Agriculture, that may be available to meet the costs of the study as well as the pilot programs. Requests the College of Agriculture, Forestry, and Natural Resource Management of the University of Hawaii to report to the Legislature prior to the Regular Session of 2010.

UH; JABSOM; Physician Shortage; Study. (HCR226, SD1) Requests the John A. Burns School of Medicine of the University of Hawaii to conduct a survey of current and prospective students to examine and develop a plan to address rural health professional shortage areas in the State.

UH; Philippine Language Courses. (SCR120) Requests the University of Hawaii at Manoa Philippine Language and Literature program and the Manoa Student Equity, Excellent, and Diversity Office to work with other University of Hawaii campuses and the Department of Education to develop a plan to develop, offer, or expand Philippine language courses, related courses, and teacher training workshops, including recommendations to implement these courses in specific public schools and University of Hawaii campuses. Requests the University of Hawaii to report to the Legislature prior to the convening of the Regular Session of 2009.

UH; Rehabilitative and Related Services; Graduate Loan Program. (HCR314) Urges the University of Hawaii to establish a rehabilitative and related services graduate school loan program within its Center on Disability Studies to provide financial support to individuals who complete graduate programs in the fields of physical therapy, occupational therapy, speech language pathology, or school psychology, and to provide educational loan forgiveness based upon employment with the State or another qualifying institution in Hawaii following completion of the graduate program.

UH; Revenue Maximization. (SCR180) Demonstrates the Legislature's support for the University of Hawaii in its efforts to enhance and diversify its sources of revenue and maximize use of its facilities. Urges the Honolulu City Council to amend Resolution 95-278, Condition 14, and other resolutions, as appropriate, to provide the University of Hawaii maximum flexibility in the use of its facilities for whatever purposes it deems appropriate through the removal of the prohibition on the use of the Stan Sheriff Center for activities of a commercial nature.

UH; School of Public Health. (SCR94) Urges the University of Hawaii to begin rebuilding a School of Public Health by 2012. Urges the University of Hawaii to work with the Department of Health, the Centers for Disease Control and Prevention, and other key public health partners to collaborate on the rebuilding of the University of Hawaii School of Public Health,

Education Page 43 with new opportunities for research, education and community service that broaden the public health infrastructure for Hawaii, the Pacific and Asia.

UH; School of Social Work; Myron Thompson. (HCR276, HD1) Recognizes the significant contributions of Myron "Pinky" Thompson to the State of Hawaii and its people by requesting the University of Hawaii Board of Regents to dedicate the University of Hawaii School of Social Work in his honor by renaming the school to the "Myron Thompson School of Social Work." Requests the Board of Regents to consider making an exception to its rule that a University of Hawaii building or school shall only be named or renamed when a minimum $25,000,000 donation is made. Requests that a plaque be placed at the entrance of the School of Social Work that explains Myron "Pinky" Thompson's contributions to the University of Hawaii as well as to the entire State.

III. Miscellaneous

HTSB; Accountability Structure. (SCR83, SD1) Requests the Auditor to conduct a study to determine the appropriate accountability structure for the Hawaii Teacher Standards Board.

Requests that the study include an examination of whether the current organizational placement of the Board as an administratively attached agency of the Department of Education is conducive to timely and efficient service for those applying for licenses; whether the functions and operations of the Board are similar to those in other states or jurisdictions with similar numbers of students, such as Nebraska; whether the functions and operations of the Board are similar to the functions and operations of other Hawaii agencies, such as the Department of Commerce and Consumer Affairs, and whether the Board might find a better fit in another agency; whether the Board's long-range planning has built-in appropriate policy foundations, benchmarks, and accountability mechanisms; whether the Board's appeals process has a defensible, rational basis, and whether that process has yielded any structural changes, improved operations, or more effective screening of applicants over the years of the Board's existence; and whether the web-based system was implemented in 2006 and, if so, whether it is presently capable of processing online applications, including retaining supporting documents and certifications online, as well as providing real time status of the application process.

Requests the Auditor to review the fiscal management of the Board, including a review of the budget process, the process for making and monitoring expenditures, and the resolution of external audit findings. Requests the Auditor to report to the Legislature prior to the Regular Session of 2009.

Page 44 Education ENERGY AND ENVIRONMENT

The Committee on Energy and Environment has jurisdiction over programs relating to energy resources including the development of alternative energy resources; population; and environmental quality control and protection, including litter control, recycling, wastewater treatment, endangered species, and hazardous waste.

Highlights

In 2008, the Committee continued its focus on increasing Hawaii's energy self-sufficiency and renewable energy use, while promoting environmental sustainability through recycling.

Demonstrating a commitment to lessening Hawaii's reliance on fossil fuel, the Legislature passed SB644, SD3, HD3, CD1, which mandates the installation of solar water heater systems, comparable renewable energy systems, or demand gas water heaters in all new residential development projects constructed after January 1, 2010. Intended to benefit the environment by increasing the use of renewable energy, this measure shifts energy policy away from the tax credit-based government investment approach to requiring private sector investment by builders and developers.

Aside from promoting the use of renewable energy, this measure will also enhance Hawaii's local economy by increasing household disposable income levels through prudent, energy saving investment. Based on current rates, the savings resulting from the installation of a solar water heater system is estimated to surpass the cost of the system in eight to ten years. Therefore, especially when considering the rising cost of oil, savings from lower electricity costs are expected to outweigh any financial burden in the initial home purchase price and make long-term homeownership more affordable on a monthly basis.

Additionally, the Legislature, following the recommendations of the Committee on Energy and Environment, also authorized special purpose revenue bonds for the planning, design, and construction of a number of important renewable energy facilities. Projects include a hydrokinetic or ocean wave energy power generation facility off-shore of Maui (SB2034, HD2; Act 103); a solar farm power plant on the Island of Oahu (SB3190, HD1; Act 105); a hydrogen generation appliance research, development, and manufacturing facility, laboratory, and gasoline- or diesel-to-hydrogen automobile conversion garage on the Island of Hawaii (HB2168, HD1; Act 116); and a plasma municipal solid waste processing system to convert solid wastes into electricity (SB1720, SD1, HD2; Act 104).

Recognizing that there is a growing need for efficient management of resources through recycling, the Legislature passed SB2843, SD2, HD3, CD1, which requires manufacturers of electronic devices to submit a plan to the Department of Health (DOH) to establish, conduct, and manage a program for the collection, transportation, and recycling of covered electronic devices sold in the State. To ensure fair and equitable enforcement of the program, the measure also includes a device labeling requirement and a fiscal structure to support implementation. Increased recycling of the many electronic devices that are discarded each year will allow the reuse of valuable resources such as copper, gold, and aluminum that would otherwise be lost. Additionally, the measure is also intended to

Energy and Environment Page 45 conserve space in landfills, while preventing toxic substances, such as lead, from leaching from discarded electronics into the environment.

Realizing a need for further study, the measure does not initially provide for the recycling of televisions. Rather, the Legislature established a working group consisting of television manufacturers and the Director of Health to develop and implement, by no later than January 1, 2010, a plan to establish, conduct, and manage a program for the collection, transportation, and recycling of televisions sold in the State. To ensure timely compliance, if a separate plan is not developed within the mandated period, this measure will automatically amend the current measure's language to include televisions.

To further study the effective use of recycling in our schools, the Legislature also passed SB871, SD2, HD2, CD1, requiring the Department of Education, in partnership with the Department of Health, to establish a three-year food waste recycling pilot project in one or more public schools. The program will enable the Departments to evaluate the efficacy and cost-effectiveness of various methods of food waste recycling and make recommendations to the Legislature.

Bills Passed

I. Energy

Definition of "Renewable Energy Producer". (HB3179, SD1, CD1; Act 90) Amends the definition of "renewable energy producer" to include growers and producers of plant or animal materials used primarily for the production of biofuels or other fuels, making them eligible for leases of public land from the Board of Land and Natural Resources through direct negotiation.

Net Energy Metering Statute; Net Energy Metering Component. (HB2550, HD2, SD2, CD1) Promotes the deployment of renewable energy technologies and net energy metering by requiring the Public Utilities Commission (PUC) to ensure that a percentage of the total rated generated capacity produced by eligible customer-generators be reserved for electricity produced by eligible residential or small commercial customer-generators.

Authorizes the PUC to:

• Define the maximum capacity for eligible residential or small commercial customer- generators; and

• Evaluate, on an island-by-island basis, the applicability of generating capacity requirements and, in its discretion, exempt an island or a utility grid system from the generating capacity requirements.

Renewable Energy Facilitator Position; Energy Security Special Fund. (HB2505, HD2, SD2, CD1) Establishes and appropriates $112,000 for a full-time, temporary Renewable Energy Facilitator position in the Department of Business, Economic Development, and Tourism (DBEDT) to streamline the process for obtaining the necessary permits for renewable energy projects. Establishes the following duties for the Renewable Energy Facilitator:

Page 46 Energy and Environment

• To facilitate the efficient permitting of renewable energy projects;

• To initiate the implementation of key renewable energy projects by permitting various efficiency improvement strategies identified by DBEDT;

• To administer the day-to-day coordination for renewable energy projects on behalf of DBEDT and the day-to-day operations of the renewable energy facility siting process established in H.B. No. 2863, H.D. 2, S.D. 2, C.D. 1, Regular Session of 2008; and

• To submit periodic reports to the Legislature on renewable energy facilitation activities and the progress of the renewable energy facility siting process.

Establishes an Energy Security Special Fund to provide additional resources to DBEDT to support its energy program and to fund the Renewable Energy Facilitator and any other necessary positions. Authorizes the use of monies from the Environmental Response Revolving Fund for deposit to the Energy Security Special Fund, as may be appropriated by the Legislature.

Renewable Energy Facility Siting Process. (HB2863, HD2, SD2, CD1) Establishes a coordinated and concurrent application process administrated by the Energy Resources Coordinator to expedite the review and action necessary for state and county permits required for the siting, development, construction, and operation of a renewable energy facility of at least 200 megawatts of electricity.

Establishes a Renewable Energy Facility Siting Special fund for the operation and administration of the renewable energy facility siting process. Authorizes the Public Utilities Commission to assist the Energy Resources Coordinator by developing reasonable guidelines and timetables for the creation and implementation of power purchase agreements.

Solar Energy Water Heating Requirement; Residential Tax Credit Modification. (SB644, SD3, HD3, CD1) Prohibits the issuance of building permits on or after January 1, 2010, for single- family residences that lack a solar water heater system meeting standards set by the state Public Utilities Commission, provided that the Energy Resources Coordinator may grant a variance if a licensed architect or engineer attests that the installation would be impractical or cost-prohibitive; if a substitute renewable energy technology system is used as the primary energy source for heating water; or if there is installed an UL-approved gas-tankless instantaneous water heater that provides hot water only upon demand (provided that there is at least one other gas appliance installed in the dwelling).

Restricts the solar thermal energy system tax credit available for single-family residential properties to those properties for which building permits were issued prior to January 1, 2010.

Prohibits residential home developers from claiming the renewable energy technologies tax credit for single-family solar thermal, wind energy, and photovoltaic energy systems installed and placed in service in 2009.

Grants the Public Utilities Commission authority to establish standards for solar water heater systems.

Energy and Environment Page 47

II. Environment

Director of Transportation; Regulation of Harbor Noise. (HB2263, SD1; Vetoed 4/29/08) This measure would have allowed the Director of Transportation (DOT) to adopt rules regulating harbor noise to limit, where possible, noise emanating from vessels using commercial harbors, ports, roadsteads, docks, wharves, piers, quays, bulkheads, and landings of the State.

It also would have exempted from scaling any vehicles used in transshipping neighbor island- bound cargo directly between piers in Honolulu Harbor, and any activities limited to crossing a public road, street, or highway within the State at locations approved by the Director of Transportation, in the case of state highways, or the County Engineer, in the case of county roads and streets.

Electronic Waste Recycling Act. (SB2843, SD2, HD3, CD1) Requires manufacturers of electronic devices, including computers, computer printers and monitors, and certain portable computers, to submit a plan to the Department of Health (DOH) by June 1, 2009, to establish, conduct, and manage a program for the collection, transportation, and recycling of covered electronic devices sold in the State. Creates labeling requirements, beginning on October 1, 2009, and registration fees and requirements, beginning on January 1, 2009, for all new covered electronic devices to be offered for sale or delivery in the State. Provides administrative penalties and authorizes the DOH to set, charge, and collect administrative fines and to recover administrative fees and costs. Requires retailers to make available to their customers, beginning January 1, 2010, information on collection services in the State and requires the DOH, beginning January 1, 2010, to maintain a website and a toll-free number with current information on where covered entities can return covered electronic devices for recycling.

Establishes the Electronic Device Recycling Fund and requires the deposit of all fees, payments, and penalties collected by the DOH under the Electronic Waste Recycling Act. Authorizes expenditure of monies from the Electronic Device Recycling Fund for the implementation and enforcement of the Act.

Establishes a working group, which includes television manufacturers, to develop a plan to establish, conduct, and manage a program for the collection, transportation, and recycling of televisions sold in the State, to be implemented no later than January 1, 2010. Provides that if a separate plan for the collection, transportation, and recycling of televisions is not implemented before January 1, 2011, the Act will be automatically amended to include televisions.

Greenhouse Gas Emissions Reduction Task Force Program Manager and Project Assistant/Researcher Positions. (HB2507, HD1, SD2, CD1) Appropriates $140,000 for two temporary full-time positions, a Greenhouse Gas Emissions Reduction Task Force program manager and a Greenhouse Gas Emissions Reduction Task Force project assistant/researcher, to provide professional and technical support for the work of the Greenhouse Gas Emissions Reduction Task Force established by Act 234, Session Laws of Hawaii 2007, and to assist with the implementation of other provisions of that Act. The additional personnel are essential in ensuring that the Task Force fulfills its responsibilities in a timely, effective manner.

Page 48 Energy and Environment

Jurisdiction Over Environmental Assessments. (SB2808, SD2, HD1; Act 110) Clarifies that in situations where two or more agencies have jurisdiction over a proposed action, the Office of Environmental Quality Control shall determine which agency has the responsibility of preparing an environmental assessment, after consultation with and assistance from the affected state or county agencies.

Preventing Bans and Unreasonable Restrictions on Clotheslines. (SB2933, SD2, HD2, CD1) Prohibits contracts and other binding agreements from precluding the installation and use of clotheslines on the premises of any privately-owned single-family residential dwelling or townhouse. Requires that rules facilitating the placement of clotheslines on these properties not be unduly or unreasonably restrictive.

Public School Food Waste Recycling Pilot Project. (SB871, SD2, HD2, CD1) Requires the Department of Education, in a partnership with the Department of Health, to establish a three-year Food Waste Recycling Pilot Project in one or more public schools. Allows the Departments to enter into public and private partnerships to establish and operate the pilot program.

Requires interim reports and a final report to be submitted to the Legislature that include information and recommendations about the efficacy of and the costs associated with the Food Waste Recycling Pilot Project. The final report is also to include a recommendation on whether the Food Waste Recycling Pilot Project should be made permanent.

Appropriates $25,000 to the Department of Education to develop and implement the pilot project.

Repeal of the Energy Resources Public-Private Advisory Committee. (HB647, HD2; Act 25) Repeals section 196-18, Hawaii Revised Statutes, which establishes a Public-Private Advisory Committee (Advisory Committee) that provides input on state energy management. Establishes that the functions of the Advisory Committee, including the discussion and evaluation of issues and concerns, are to be carried out by ad hoc groups of various expertise that the Department of Business, Economic Development, and Tourism is already authorized to convene.

Systematic Approach to Control Coqui Frog Infestations. (HB2977, HD1, SD1, CD1) Requires the appropriate state agencies to:

(1) Collaborate with the counties and communities in developing and implementing a systematic approach to reducing and controlling coqui frog infestations on public lands that are near or adjacent to communities; and

(2) Provide annual reports on the progress made in achieving this objective.

Energy and Environment Page 49 III. Special Purpose Revenue Bonds

H2 Technologies Incorporated; Hydrogen Generation; Automobile Fuel Conversion Garage; Special Purpose Revenue Bonds. (HB2168, HD1; Act 116) Authorizes the issuance of special purpose revenue bonds in a total amount not to exceed $50,000,000 to assist H2 Technologies Incorporated for the construction on the island of Hawaii of a:

• Hydrogen generation appliance research, development, and manufacturing facility and laboratory; and

• Gasoline- or diesel-to-hydrogen automobile conversion garage.

Hui Mana ‘Oma‘o; SPRBs. (HB2661, HD2, SD2, CD1) Authorizes the issuance of special purpose revenue bonds in an amount not to exceed $38,000,000 to assist Hui Mana ‘Oma‘o in establishing facilities to convert potential renewable energy resources into electrical energy for consumption by the general public.

Jacoby Development, Inc. - Geoplasma LLC; Plasma Municipal Solid Waste Processing System; Special Purpose Revenue Bonds. (SB1720, SD1, HD2; Act 104) Authorizes the issuance of special purpose revenue bonds in an amount not to exceed $100,000,000, for the purpose of assisting Jacoby Development, Inc. - Geoplasma LLC, with the planning, designing, constructing, and equipping of, and the acquisition of lands for, a plasma municipal solid waste processing system to convert solid wastes into electricity and chemically and biologically inert slag in the State of Hawaii.

Oceanlinx Hawaii LLC; Ocean Wave Energy; Special Purpose Revenue Bonds. (SB2034, HD2; Act 103) Authorizes the issuance of special purpose revenue bonds in an amount not to exceed $20,000,000 to assist Oceanlinx Hawaii LLC with the planning, design, and construction of a hydrokinetic or ocean wave energy power generation facility off-shore of Maui.

Sopogy, Inc; Solar Farm; Special Purpose Revenue Bonds. (SB3190, HD1; Act 105) Authorizes the issuance of special purpose revenue bonds in an amount not exceeding $35,000,000 to assist Sopogy, Inc. with planning, designing, constructing, equipping, and operating a solar farm power plant on the Island of Oahu to produce electricity from solar power.

IV. Other Issues

Electronic Permitting Fees; Department of Health; Environmental Programs. (HB3151, HD2, SD1; Act 83) Facilitates efficient electronic transactions for specified Department of Health environmental programs charged with the collection of fees by authorizing the Department to deduct processing and credit card fees from permit, license, and other fees that are paid electronically by permit, license, and other applicants.

Energy-Efficiency and Demand-Side Management Programs and Services; Public Benefits Fee. (SB3001, SD2, HD2, CD1; Act 118) Clarifies Hawaii law relating to the administration and use of monies supporting energy-efficiency and demand-side management programs and services, and the status of the Public Benefits Fee Administrator by:

Page 50 Energy and Environment

• Authorizing the Public Utilities Commission (PUC) to require that monies collected by Hawaii's electric utilities from its ratepayers through a demand-side management surcharge be transferred to a third-party administrator contracted by the PUC, and clarifying that the transferred monies are to be known as the Public Benefits Fee;

• Clarifying that the PUC shall "contract" with, rather than "appoint" the Public Benefits Fee Administrator;

• Clarifying that the State may participate in energy-efficiency or demand-side management programs and services on the same basis as any other electric consumer;

• Clarifying that the Public Benefits Fee is not to be construed as state or public monies; and

• Clarifying that the Public Benefits Fee Administrator is not a governmental body; provided that all moneys transferred to the Administrator consist solely of collected Public Benefit Fees.

Establishment of Ratepayer-Funded Photovoltaic Rebate Program. (SB988, SD2, HD3, CD1) Authorizes the Public Utilities Commission (PUC) to establish a ratepayer-funded photovoltaic rebate program upon evaluating the costs and benefits of a rebate program and determining that a rebate program is in the public interest.

Authorizes the PUC to delegate the administration of the photovoltaic rebate program to the Public Benefits Fund Administrator.

Provides that the Act is to be repealed on June 30, 2013.

Natural Energy Laboratory of Hawaii Authority Decision Making Authority; Structure of the Board of Directors. (SB1793, SD1, HD1, CD1) Allows the Natural Energy Laboratory of Hawaii Authority (NELHA) to communicate directly with the Governor and the Legislature and to make employment decisions and purchase supplies, equipment, and furniture without the approval of the Director of Business, Economic Development, and Tourism (DBEDT), except for powers or actions related to the Center of Excellence for Research in Ocean Sciences. Repeals the provision that grants NELHA independent decision making authority without approval from DBEDT on July 1, 2013.

Amends the law relating to the NELHA Board of Directors by:

(1) Increasing the number of members from eleven to thirteen;

(2) Increasing from three to five, the number of public members, and designating that at least two public members shall be selected from tenants of NELHA and three possible members shall be selected from the general public;

(3) Preventing the tenant members from voting on lease rent or water rate issues; and

(4) Requiring a super majority vote of seven members to make decisions on lease rent or water rate issues.

Energy and Environment Page 51

Resolutions Adopted

Global Warming Task Force. (SR65) Requests the Department of Health to establish a Global Warming Task Force to assess the effects of global warming in the State. Requests the Global Warming Task Force to:

• Assess the current and potential impact of climate warming trends and rising ocean levels as a result of climate change on the citizens, natural resources, and the economy of the State;

• Estimate the costs to the State and its citizens of adverse effects of climate warming and rising sea levels; and

• Make recommendations to the Legislature and the Governor on measures that would address or mitigate the effects of climate change.

Supporting Federal Tax Incentives; Encouraging use of Renewable Energy Sources. (HCR235, HD1) Expresses support for the continuation of federal wind and solar energy tax incentives for at least an additional five years. These incentives are set to expire on December 31, 2008.

Voluntary Polystyrene Foam Alternative Products Use Program. (SR78, SD1) Requests the Department of Business, Economic Development, and Tourism (DBEDT) to:

• Create a voluntary compliance program to encourage communities and businesses to convert to alternative products, other than expanded polystyrene foam products, and to submit a report containing the contents, actions, and results of the voluntary compliance program to the Legislature prior to the convening of each regular session;

• Create a list of alternative products to replace polystyrene foam products that includes information on the cost differences, and make the information available to the public; and

• Conduct a comparison study of the recyclability, compostability, and biodegradability of the alternative products, along with the availability of disposal methods for each product, and submit the results of the study to the Legislature prior to the convening of each regular session.

Page 52 Energy and Environment HEALTH

The Committee on Health has jurisdiction over programs relating to general health, maternal and child health, communicable diseases, dental health, medical and hospital services, mental health, developmental disabilities, and hospitals.

Highlights

The 2008 Legislature focused its efforts predominantly on establishing solutions that will ensure affordable access to quality health care for everyone in the State. The lack of affordable health care in conjunction with the financial instability of public health facilities, particularly in the rural areas of the State, is causing a serious public health crisis.

The Legislature passed SB2542, SD2, HD2, CD1, to ensure that the community health center system remains financially viable and stable in the face of the increasing needs of the population of uninsured and underinsured residents. This bill establishes a process that enables community health centers and rural health clinics to receive supplemental Medicaid payments and to seek modifications to their scope of services. It also makes an appropriation in the amount of $1,000,000 in general funds to adequately pay federally qualified community health centers for direct medical care services for the uninsured.

The Legislature addressed the affordability and availability of prescription medications in two separate measures. HB7, HD1, SD1 (Act 59), requires the Governor to enter into a written agreement, no later than January 1, 2009, with the State of Illinois and any other state necessary, authorizing the State of Hawaii to participate in the Illinois I-SaveRx prescription drug program which, provides all program participants, including Hawaii residents, access to safe and affordable prescription drugs from Europe and Canada. Additionally, recognizing that many individuals living in underserved or remote areas need improved access to medications and pharmacy services, SB2459, SD2, HD1, CD1, authorizes the operation of remote dispensing pharmacies to dispense prescription medications and provides regulations for the establishment and implementation of remote dispensing pharmacies.

The Legislature passed SB2041, HD1, CD1, to meet rising health care costs and to ensure that Hawaii's residents have continued access to quality health care. This bill takes advantage of available federal matching funds by making an appropriation in the amount of $5,774,340 from the general revenues of the State of Hawaii for fiscal year 2008-2009 for the State to match the federal Medicaid disproportionate share hospital allowance grant to provide continuing health care in our communities.

The cost of providing care to trauma patients is far higher than the total payments received to cover the costs. The Legislature recognized a desperate need for additional resources for this public health service to ensure that specialized trauma care will be available to all of Hawaii's residents. SB1804, SD2, HD2, CD1, establishes additional funding mechanisms to increase revenues in the Trauma System Special Fund by assessing surcharges for violations of various traffic offenses that have a nexus with trauma care.

During the 2008 Regular Session, Hawaii experienced signs of a weakening national economy with the abrupt closure and bankruptcy filings of several long-standing local businesses that

Health Page 53 employ thousands of the State's residents. To ensure that the children affected by the labor dislocation crisis have health insurance coverage, the Legislature passed SB69, SD2, HD3, CD1, which expands the eligibility for the Hawaii Children's Health Care Program. This bill makes health insurance available until December 31, 2008, for children who are uninsured due to the loss of a parent's or guardian's health insurance, provided that the parent or guardian was employed by a Hawaii corporation that, between February 29, 2008 and September 30, 2008, filed for bankruptcy and ceased doing business in Hawaii or simply ceased doing business in Hawaii.

Bills Passed

I. Health Care Facilities

Cancer Research Special Fund. (HB2164, HD1, SD1; Act 84) Increases the sources of revenue available for the Cancer Research Center of Hawaii by authorizing all other fees, charges, and other monies received in conjunction with programs of the Cancer Research Center of Hawaii and transfers from other accounts or funds to be deposited into the Hawaii Cancer Research Special Fund. Expands the authorization of use of the monies in the special fund to be used for the Cancer Research Center of Hawaii's capital expenditures.

Disproportionate Share Hospital Allowance; Appropriation. (SB2041, HD1, CD1) See Human Services and Public Housing, Part V, for digest.

Emergency Appropriation; Hawaii Health Systems Corporation. (HB3161, SD3; Vetoed Line- Item Appropriation 4/21/08; Act 30 4/22/08) Makes an emergency appropriation in the amount of $14,000,000 for fiscal year 2007-2008 for the Hawaii Health Systems Corporation to pay accounts payable within 45 days from the date of the invoice for the Corporation's facilities, excluding the Maui Memorial Medical Center located in the Maui region of the Hawaii Health Systems Corporation. Vetoed line item would have appropriated $11,000 for Maui Memorial Medical Center for operating expenses. However, Maui Memorial received an operating expense loan, making the appropriation unnecessary.

Maui Memorial Medical Center; Revenue Bonds; Heart, Brain, Vascular Center; Appropriation. (SB2768, SD2, HD1, CD1; Act 115) Authorizes the issuance of $150,000,000 in revenue bonds to assist the Maui region of the Hawaii Health Systems Corporation to finance the construction, improvement, and equipment of its health care facilities, including the construction of a new heart, brain, and vascular center.

Public Health; Federally Qualified Health Centers; Appropriation. (SB2542, SD2, HD2, CD1) Establishes a process that enables community health centers and rural health clinics to receive supplemental Medicaid payments and to seek modifications to their scope of services. Appropriates $1,000,000 in general funds to adequately pay federally qualified community health centers for direct medical care services for the uninsured.

Special Purpose Revenue Bonds; Castle Medical Center. (HB2271, HD1, SD2; Act 75) Authorizes the issuance of $30,000,000 in special purpose revenue bonds to assist in the financing of equipment purchases, the construction and improvement of health care facilities, refinancing debt, and other related projects for Castle Medical Center.

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Trauma System Special Fund; Surcharges. (SB1804, SD2, HD2, CD1) Establishes additional funding mechanisms to enhance the availability of revenues in the trauma system special fund to ensure the availability of care for trauma patients in the State. Provides for deposit into the Trauma System Special Fund of surcharges assessed for violations of various traffic offenses that have a nexus with trauma care.

II. Health Insurance

Group Health Insurers; Small Business. (HB2224, HD1, SD2) Requires all group health issuers to offer small group health plans to self-employed individuals who live, work, or reside in the group health issuer's service areas. Authorizes the Insurance Commissioner to exempt a group health issuer that does not have the capacity to deliver services adequately to enrollees of additional groups due to its obligation to existing employer groups.

Health Care Coverage Assistance; Children's Health Care. (SB69, SD2, HD3, CD1) Expands the eligibility for the Hawaii children's health care program, making health insurance available until December 31, 2008, for children who are uninsured due to the loss of a parent's or guardian's health insurance; provided that the child's parent or guardian was employed by a Hawaii corporation that, between February 29, 2008 and September 30, 2008, filed for bankruptcy and ceased doing business in Hawaii or simply ceased doing business in Hawaii.

Insurance; Unfair Practices; Exception for Small Insurers. (SB2314, SD1, HD2, CD1) Authorizes insurers subject to chapter 432, Hawaii Revised Statutes, relating to benefit societies, with less than five per cent of the health insurance market share, offering contracts for dental, vision, drug, and life insurance as a condition, agreement, or understanding to a health insurance policy pursuant to chapter 432, to be exempt from the anti-tying statutes. Requires the Auditor to perform an analysis of the effects of this exemption and submit a report to the Legislature no later than twenty days prior to the convening of the Regular Session of 2010. Sunsets on June 30, 2011.

Task Force; Health Coverage; Autism Spectrum Disorders. (HB2727, HD2, SD1, CD1) Establishes a temporary Autism Disorders Spectrum Benefits and Coverage Task Force to discuss and seek input on the problems faced by parents of children with autism and what can be done to ensure that proper health benefits and services are provided through public and private resources to address the special needs of children with autism, including providing services involving applied behavioral analysis techniques. In addition, the Task Force shall research health insurance coverage plans that cover autism spectrum disorders in other states and develop a plan of services that health insurers should be mandated to cover. Requires Task Force to submit a report to the Legislature no later than 20 days prior to the convening of the 2009 Regular Session.

III. Health Care Professionals

Acupuncturists; Examination and Licensure. (HB3106; Act 21) Ensures educational equivalency by requiring foreign-educated acupuncture applicants to have their

Health Page 55 educational information evaluated, at the applicant's expense, by a board-approved and designated professional evaluator to determine transcript and curriculum equivalency with the United States accredited acupuncture program.

Dentistry; Interference with Practice. (HB2301, HD1, SD1; Act 44) Prohibits a licensed dentist from allowing an entity or non-dentist to own, direct, control, or interfere with the licensee's practice of dentistry, interfere with the licensee's clinical judgment and competent practice of dentistry, or limit access to the dental office, facilities, and equipment necessary to provide service to the licensee's patients.

Emergency Appropriation for Emergency Medical Services. (SB3074, SD1, HD1; Act 35) Appropriates emergency funds in the amounts of $507,539 from the general fund and $1,300,000 from the Emergency Medical Services Special Fund for fiscal year 2007-2008 for the collective bargaining costs of the City and County of Honolulu's emergency medical service personnel.

Epidemiologists. (SB3076, HD1, CD1; Act 78) Authorizes the Department of Health to create up to ten permanent or temporary exempt epidemiologist positions.

Genetic Counselors; Licensure. (SB1805, SD1; Vetoed 4/17/08) Would have established a licensure program for genetic counselors who, among other things, are board-certified by the American Board of Genetic Counseling.

Hawaii Health Corps Program Working Group. (HB2519, HD2, SD2, CD1) Establishes the Hawaii Health Corps Program Working Group to develop a plan to create the Hawaii Health Corps Program that will address physician and dentist shortages through student loan repayment and stipend programs. Requires the working group to prepare the plan to be fully implemented by January 1, 2010, with a report and proposed implementing Legislation to be submitted to the Legislature prior to the 2009 Regular Session.

Nursing; University of Hawaii; Advisory Board. (SB2146, SD2, HD1, CD1) Allows the Center for Nursing at the University of Hawaii to continue receiving funds by extending the sunset date for the deposit of certain nursing fees into the Center for Nursing Special Fund, from July 1, 2009 to July 1, 2014. Requires two of the three representatives of the Hawaii Nurses' Association who sit on the Advisory Board of the Center to represent the professional component, and one representative to be a non-managerial staff nurse. Requires the Center's Advisory Board to submit an interim report on the progress and findings of the five- year longitudinal study being conducted by the Center regarding the turnover of new graduate registered nurses and best practices in nurse retention and a report on funding alternatives for the Center to the Legislature prior to the 2009 Regular Session.

Osteopathy. (SB3027, SD2; Act 5) Provides uniformity in the practice and regulation of osteopathic physicians and doctors of medicine by including osteopathic physicians under chapter 453, Hawaii Revised Statutes, relating to the regulation of doctors of medicine, and repealing chapter 460, Hawaii Revised Statutes, relating to the regulation of osteopathic physicians.

Registered Nurses; Licensure. (HB2165; Act 23) Authorizes applicants applying for a license to practice as a registered nurse to apply for a license by examination if they have graduated with a bachelor's degree and satisfactorily completed the pre-licensure portion of

Page 56 Health a master's entry program in nursing at an accredited school of nursing in the United States or any territory or possession under the jurisdiction of the United States that is recognized by the Board of Nursing or other state boards of nursing and are qualified as determined by the Board.

Regulation of Licensed Mental Health Counselors; Sunset; Repealed; Reimbursable Practitioners. (SB2159, HD1) Makes permanent the Mental Health Counselor Licensure program and provides for insurance coverage for their services by adding licensed mental health counselors to the list of practitioners who may provide the mental health services required to be included in health insurance policies under chapter 431M, Hawaii Revised Statutes.

IV. Mental Health

Defendant Records; Department of Health; State Hospital; Custody. (SB3069, SD2, HD1, CD1; Act 99) Expedites the records disclosure process of defendants who are committed to a state hospital or to the custody of the Director of Health for clinical evaluation purposes, while protecting a patient's right of privacy, by making the county police departments responsible for providing to the Director of Health certain police records. Requires the county police departments to provide copies of all police reports to the Director of Health and the defendant that has been committed to the custody of the Director.

Emergency Appropriation for the Adult Mental Health Division. (SB3068, SD1, HD1; Act 29) Provides an emergency appropriation in the amount of $10,000,000 in general funds for fiscal year 2007-2008 to cover the ongoing costs of services provided by the adult mental health division, the revenue shortfall, and operational costs at the Hawaii State Hospital.

Mental Health Facilities; Hawaii State Hospital; Forensic Patients. (SB2396, SD1, HD3, CD1; Act 100) Requires the Department of Health to submit an annual report summarizing yearly data on forensic patients regarding admissions, discharges, and lengths of stay at the Hawaii State Hospital. Allows the Director of Health and persons subject to inpatient hospitalization or conditional release to apply to the court to conduct a hearing to assess any further need for inpatient hospitalization. Reduces the minimum length of hospitalization from ninety to sixty days for individuals who are recommitted after conditional release. Makes assault on a person employed at a state-operated or –contracted mental health facility a class C felony.

Mental Health Records; Confidentiality; Exceptions. (SB1802, HD1, CD1; Act 98) Provides for disclosure of a person's treatment summary from a previous five-year period from one health care provider to another when necessary for the purpose of continued care and treatment of the person, or for health care operations. Requires the health care provider seeking disclosure to make reasonable efforts to obtain advance consent from the person. Defines "treatment summary" as a record of information including present history and physical examination, mental status examination, emergency department record, intake evaluation, eligibility determination, current medication list and prescription history, treatment plan, consultant reports, diagnosis and problem lists, recent laboratory and diagnostic testing, clinical or discharge summaries, and discharge instructions, or any combination of such information.

Health Page 57 V. Prescriptive Medications

Controlled Substances. (SB1487, SD2, HD2, CD1) Conforms Hawaii's controlled substance law to federal law by including and clarifying penalties for violations of the controlled substance law and providing injunctive relief to prevent violations. Defines "physician-patient relationship" and requires pharmacists to promptly reduce each oral prescription from a practitioner to writing. Adds Embutramide (Tributame) to the list of schedule III depressants. Prohibits practitioners from predating or pre-signing prescriptions for controlled substances. Requires practitioners to be physically in the State and have a bona fide physician-patient relationship for the issuance of a written or oral prescription for a controlled substance.

I-SaveRx Prescription Drug Program. (HB7, HD1, SD1; Vetoed 5/1/08; Overridden 5/1/08; Act 59) Requires the Governor to enter into a written agreement, no later than January 1, 2009, with the State of Illinois and any other state necessary, authorizing the State of Hawaii to participate in the I-SaveRx prescription drug program that provides all program participants, including Hawaii residents, access to safe and affordable prescription drugs from Europe and Canada through the Illinois I-SaveRx prescription drug program. Sunsets June 30, 2012.

Remote Dispensing Pharmacy; Medication. (SB2459, SD2, HD1, CD1) Improves access to medications and pharmacy services by authorizing the operation of remote dispensing pharmacies to dispense prescription medications. Prohibits the operation of a remote dispensing pharmacy within a five-mile radius of a pharmacy. Provides regulations for the establishment and implementation of remote dispensing pharmacies.

VI. Cancer Research and Awareness

Cancer Surveillance and Research; Data Collection. (SB2040, SD1, HD2; Act 117) Advances efforts to improve cancer control and surveillance of cancer incidence and survival by:

• Allowing all morbidity data for cancer collected by certain cooperating entities to be shared with the Department of Health;

• Adding "biological specimens" to the list of materials that may be provided to the Hawaii Tumor Registry (Registry) to assist in cancer research studies, and allowing materials related to individuals with "pre-cancerous conditions" to be provided to the Registry;

• Allowing researchers to use the names of persons or physicians when requesting additional information for research studies approved by the Cancer Commission of the Hawaii Medical Association (HMA) and the appropriate federally-authorized human subjects protection board; and

• Allowing a cancer patient to be contacted directly for purposes of cancer surveillance, instead of requiring approval from the patient's attending physician.

Cervical and Breast Cancer Screening; Transfer of Funds. (SB3185, SD2, HD1; Act 52) Provides funding for cervical cancer and breast cancer screening, education, and outreach. Expands the Breast and Cervical Cancer Treatment Program by:

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• Changing its name to the Comprehensive Breast and Cervical Cancer Control Program;

• Requiring the Department of Human Services to collaborate with the Department of Health to provide screening, education, and outreach, regardless of a woman's eligibility for Medicaid coverage;

• Requiring the Department of Human Services to transfer $150,000 from its funds to the Department of Health for cervical and breast cancer screening, education, and outreach; and

• Requiring the Department of Health and the Department of Human Services to submit an annual report to the Legislature on the expenditure of funds for the Program.

VII. Organ Donation

Anatomical Gifts. (HB2139, HD2, SD1, CD1) Enacts the Revised Uniform Anatomical Gift Act to conform to the 2006 Uniform Anatomical Gift Act law enacted in other states. Prescribes the process for making anatomical gifts of a deceased person's body or body parts for transplantation, therapy, research, or education. Establishes the Hawaii Organ and Tissue Education Special Fund to be used exclusively for public education programs and activities on organ, tissue, and eye donation. The organ and tissue education fees collected by each county from vehicle registrations shall be deposited into the Hawaii Organ and Tissue Education Special Fund.

Organ Donor Registry. (HB2366, SD1, CD1) Establishes the statewide organ donor registry to serve as a centralized database and automated system to make organ donor information available to family members and physicians seven days a week, twenty-four hours per day. The registry is to be used to compile organ donation information received by the Department of Health, the Department of Transportation, the county motor vehicle agencies, attorneys, organ donation awareness programs, and others. Directs the Director of Health to apply for a federal grant to fund improvements to Hawaii's organ donor registry system and authorizes the Director to contract with a Hawaii organ procurement organization for establishment of the statewide registry.

VIII. Other Issues

Emergency Planning and Community Right-To-Know Act. (HB3150, HD2, SD1; Act 87) Amends the Emergency Planning and Community Right-to-Know Act by clarifying that owners or operators of facilities in the State that store, use, or manufacture any hazardous substance are required to have a material safety data sheet for a hazardous chemical under the Occupational Safety and Health Act of 1970 prepared for all hazardous substances, except for extremely hazardous substances, present at the facility in amounts not less than ten thousand pounds. A material safety data sheet is required for all extremely hazardous substances present at the facility in amounts not less than five hundred pounds, or the threshold planning quantity for that substance, whichever is less.

Health Page 59 Medical Marijuana; Task Force. (HB2675, HD2, SD1) Establishes the Medical Marijuana Task Force to examine current laws in Hawaii and other states regarding marijuana for medical use, the feasibility of developing safe growing facilities in Hawaii, and solutions to challenges faced by qualified patients when traveling inter-island. Requires the Task Force to report to the Legislature no later than 20 days prior to the convening of the 2009 Regular Session.

Resolutions Adopted

I. Health Care Workforce

Center for Nursing; Supply. (HCR277, HD2) Encourages the Hawaii State Center for Nursing to ensure that all relevant stakeholders in the health of the nursing industry, including nurses, the Legislature, the University of Hawaii, Hawaii Government Employees Association and health care facilities in the State, participate and work together for the common goal of increasing Hawaii's supply of well-educated and dedicated nursing professionals.

Requesting the Auditor to Study the Impact of Act 226, Session Laws of Hawaii 2007. (HCR164) Requests the Auditor to conduct a comprehensive study on the results and impact of Act 226, Session Laws of Hawaii 2007, to determine its impact on:

• Nurse aides who work in state-licensed or state-certified health care settings; and

• Any other persons or areas that may be identified by the Auditor.

Requests the Auditor to study the possibility of other sources of funding these costs, including the costs of services rendered to carry out the purposes of Act 226, such as the costs for recertification and competency evaluation. In conducting the study, the Auditor is requested to seek the views of the Department of Human Services, Department of Health, the Department of Commerce and Consumer Affairs, the Healthcare Association of Hawaii, the Hawaii Long Term Care Association, ARCA/Filipino Coalition, and other parties who may be knowledgeable about or impacted by Act 226, Session Laws of Hawaii 2007.

Requests the Auditor to submit a report of its findings and recommendations to the Legislature no later than twenty days prior to the convening of the Regular Session of 2009.

II. Health Care Facilities and Technology

Health; Telemedicine. (HCR138, HD2, SD1) Requests the University of Hawaii John A. Burns School of Medicine's Telehealth Research Institute to form a task force to explore the feasibility of further implementation of the telemedicine system's health care services so that citizens of Hawaii may benefit from it. Requests the Telehealth Research Institute to direct the task force to examine the following issues:

• Current use of telemedicine and equipment;

• Costs for expansion;

Page 60 Health • Timeframe for full implementation of an expansion project;

• Potential difficulties or problems that may arise during or after implementation; and

• Broader issues addressed at the November 15, 2007, Hawaii Telehealth Collaborative Symposium.

Requests Telehealth Research Institute to include in the task force:

• The Director of Health or the Director's designee;

• The Dean of the John A. Burns School of Medicine at the University of Hawaii or the Dean's designee;

• The President and Chief Operating Officer of the Hawaii Health Systems Corporation or the President and Chief Operating Officer's designee;

• One member from a for-profit health care organization;

• One member from a nonprofit hospital or health care organization;

• One member from the Hawaii Medical Service Association;

• The Chairperson of the Hawaii Telehealth Collaborative Symposium steering committee or the Chairperson's designee;

• The Chief Executive Officer of the Hawaii Primary Care Association or the Chief Executive Officer's designee;

• The Chief Executive Officer of Kaiser Permanente or the Chief Executive Officer's designee;

• The President of the Hawaii Psychiatric Medical Association's Psychiatric Rural Health Collaborative or the President's designee;

• The Director of Human Services of the Director's designee;

• The Executive Director of the American Telemedicine Association or the Executive Director's designee;

• The Director of the Telecommunication and Information Policy Group or the Director's designee;

• The Board President of the Hawaii Rural Health Association or the Board President's designee;

• The Executive Director of the Hepatitis Support Network of Hawaii or the Executive Director's designee; and

• Any other person as determined by the Director of the Telehealth Research Institute.

Health Page 61 Requests the Telehealth Research Institute to appoint all members of the task force no later than 30 days after the adjournment sine die of the Regular Session of 2008, and convene the initial meeting of the task force within thirty days after appointment of its members. Requires the Telehealth Research Institute to provide necessary administrative, professional, technical, and clerical support to the task force. Further requests the task force to submit a preliminary report of its findings and recommendations to the Legislature no later than 20 days prior to the convening of the 2009 Regular Session, and a final report of its findings and recommendations, including any necessary proposed legislation, no later than 20 days prior to the convening of the 2010 Regular Session.

Maui Health Initiatives Task Force; Tax Recommendations; Study. (SR15) Requests the Department of Taxation to conduct a study of the tax recommendations of the Maui Health Initiative Task Force. Requests that the study include projected tax revenue loss and details regarding the administrative implementation of each tax credit recommendation. Requests the Department of Taxation to report to the Legislature and the Governor on its findings and recommendations no later than December 1, 2008. Requests that a legislative informational briefing be conducted on the report of the Department of Taxation after it files the report.

Medical Surveillance System; Mandatory Insurance Coverage. (HCR62, HD1, SD1) Requests the Auditor to conduct an impact assessment report of the social and financial impacts of mandating health insurance providers to include medical surveillance services for covered patients receiving in-patient health care services at an acute care hospital in their policies and contracts, hospital and medical service plan contracts, medical service corporation contracts, and health maintenance organization plans and contracts, as provided in S.B. No. 409, S.D. 2, H.D. 1 (2008). Requests the Hawaii Health Systems Corporation to conduct a pilot study to determine the social and financial impact to the system. Requests the Auditor and Hawaii Health Systems Corporation to submit findings and recommendations to the Legislature, including any necessary implementing legislation, no later than twenty days prior to the convening of the Regular Session of 2009.

III. Residential and Long-Term Care

Adult Residential Care Homes; Community Care Foster Family Homes; Department of Health and Department of Human Services Standardized Policy. (HCR21, HD1, SD1) Urges the Department of Health and Department of Human Services to work together to develop a standardized, workable policy to protect the elderly without compromising resident care, and that encourages more people to become Adult Residential Care Home or Community Care Foster Family Home operators.

ARCH Operators; DHS; DOH. (HCR20, HD1) Urges the Department of Health and the Department of Human Services to provide adult residential care home (ARCH) operators with the services necessary to assist them in providing care for adults. The Department of Health and Department of Human Services should have a staff person representing the department on-call 24-hours a day, seven days a week, for the purpose of assisting ARCH operators to receive departmental assistance. Requests the Department of Health and the Department of Human Services to provide all information (which each department has in its possession) that is pertinent to the adults in their care.

Page 62 Health Long-term Care; Waitlisted Patients. (HCR53) Requests the Healthcare Association of Hawaii to continue its work in developing solutions to help the many acute care hospital patients who are wait listed for long-term care, due to insufficient numbers of long-term care beds in nursing facilities. Requests the Healthcare Association of Hawaii to submit a second report of its findings and recommendations to the Legislature no later than 20 days prior to the convening Of the Regular Session of 2009.

IV. Medical Services and Assistance

Auditor; Sunrise Review; Health Insurance; Autism. (SCR196, SD1) Requests the Auditor to conduct an impact assessment report of the social and financial impacts of mandating coverage for the diagnosis and treatment of autism spectrum disorders in all policies and contracts, hospital and medical service plan contracts, medical service corporation contracts, and health maintenance organization plans and contracts issued after December 31, 2008, as provided in S.B. No. 2532, S.D. 1 (2008). Requests the Auditor to submit findings and recommendations to the Legislature, including any necessary implementing legislation, no later than 20 days prior to the convening of the Regular Session of 2009.

Shaken Baby Syndrome; Prevention. (HCR25) Urges all hospitals that provide medical care to newborns to give parents of each newborn written educational information approved by the Department of Health about the dangerous effects of Shaken Baby Syndrome and different methods of preventing Shaken Baby Syndrome. Requests the Department of Health to create, identify, and provide suitable informational literature to hospitals that provide medical care to newborns to be given to the parents of the children.

Study; Cervical Cancer Immunization. (SR14, SD1; HCR51) Requests the working group established in 2007 by the Department of Health's Immunization Branch that is currently working with Department and community stakeholders to review and update school immunization and examination requirements, to assess the advantages and disadvantages of requiring cervical cancer vaccinations for girls before they enter the seventh grade. Requests that the working group submit a report of its findings and recommendations, including any proposed legislation, to the Legislature no later than 20 days before the convening of the Regular Session of 2009.

Tuberculosis (TB) Screening and Treatment; Public Housing. (SR44) Requests the Department of Health and the Hawaii Public Housing Authority to collaborate in:

• Determining whether and to what extent the imposition of TB screening and treatment should be considered as an appropriate and effective public health practice and as a condition before any person enters public housing and emergency transitional shelter housing, as a resident;

• Determining whether and to what extent screening and treatment for TB could be provided within public housing projects and emergency transitional shelter housing, and in conjunction with other services provided to residents of public housing, regardless of whether it is made a requirement for residents; and

• Implementing TB screening and treatment services to the extent the agencies determine it is possible.

Health Page 63

V. Environmental Health

Toxic Consumer Products; Phthalates; Bisphenol-A; Child Safety. (SR68, SD1) Requests the Department of Health to monitor research that is being conducted to investigate the risks involved in the use of phthalates and bisphenol-A in consumer products, including children's toys and childcare products. Requests the Department of Health to submit a report to the Legislature no later than 20 days prior to the convening of the 2009 Regular Session on the research being conducted, information gathered, and any recommendations and proposed legislation.

VI. Other Issues

Designating the Month of September as "Brain Aneurysm Awareness Month" in Hawaii. (HCR240, HD1) Urges the Governor to designate the month of September as "Brain Aneurysm Awareness Month". Urges the Department of Health to develop and implement an awareness campaign for the general public on the effects of brain aneurysms and steps that can be taken to provide for detection and treatment.

Divided We Fail Campaign. (SCR153, SR83) Recognizes the Legislature's joint support with Hawaii's Congressional delegation in support of the "Divided We Fail" campaign, an effort that engages Americans to call on their elected leaders to work together across party lines to provide answers, action, and accountability on issues such as affordable access to health care and long-term financial security. Urges the mayors and county council of each county to support the "Divided We Fail" campaign.

Kalaupapa; Acknowledgment and Apology. (SCR208, SD1) Recognizes, acknowledges, and expresses the Legislature's gratitude to the people of Kalaupapa and their families for their sacrifices, for thinking more of the public than of themselves, for giving up freedoms and opportunities the rest of society takes for granted, for rebuilding their lives with pride and dignity, for overcoming prejudice and discrimination, and for consistently reaching out to others in need. Acknowledges that while the Legislature does not confer any legal cause of action or any legal rights, remedies, relief, restitution, or reparations on any person with the adoption of this measure, it nonetheless apologizes for the past actions against, and treatment of, past and current residents of Kalaupapa.

Further acknowledges that this overdue action be issued with the utmost respect and admiration for those remaining Kalaupapa residents, the descendents of those who have died and family members who all have endured separation from loved ones and the anguish that came with it, with the hope that if any quarantine or isolation is necessary in the future to protect public health and safety, it will be used only with appropriate safeguards to protect every individual's dignity and rights.

Ovarian Cancer; Awareness of Common Symptoms. (HCR33, HD1) Acknowledges the month of September as National Ovarian Cancer Month and Gynecological Cancer Awareness Month. Urges primary health care providers and cancer organizations to develop and implement educational strategies to inform women of the common symptoms of ovarian cancer.

Page 64 Health HUMAN SERVICES AND PUBLIC HOUSING

The Committee on Human Services and Public Housing has jurisdiction over programs relating to public assistance, Medquest, youth services, early childhood education and care programs under the Department of Human Services, and vocational rehabilitation; long term care; programs relating to the promotion of the general well-being of Hawaii's youth, families, and elderly population; homeless and public housing.

Highlights

The 2008 Legislature saw the passage of significant pieces of legislation addressing child endangerment, adult protection, foster care, and health care, some due in large part to the dedicated efforts of certain community advocacy groups who have worked closely with the Legislature for several years to determine the most appropriate ways to address a particular issue.

ADULT PROTECTION

SB2150, SD2, HD2, CD1, expands the types of abuse from which vulnerable adults are protected, and expands the authority to investigate allegations of abuse, neglect, and financial exploitation.

To help ensure the reputable and responsible character of service providers for the health, safety, and welfare of service participants, SB3051, SD2, HD1, CD1, adds the Retired and Senior Volunteer program to the list of Department of Human Services programs for which criminal background record checks are conducted, and expands the list of individuals whose backgrounds may be looked into to include volunteers and other adults regularly present at these programs.

ASSET BUILDING

SB2838, SD2, HD1, CD1, allows income tax refunds to be deposited into up to three checking or savings accounts to encourage individual saving.

SB2840, SD2, HD1, CD1, requires the Department of Business, Economic Development, and Tourism to establish and update a self-sufficiency standard that would more accurately reflect the income needed to afford the basic necessities of life in the State to be a tool for lawmakers, the business and education communities, and the nonprofit sector to improve efforts to help lower-income families reach economic sufficiency.

CAREGIVING

SB2830, SD2, HD2, CD1, is an omnibus measure that extends the term of the Joint Legislative Committee on Family Caregiving (Committee) until June 30, 2010, expands the Committee's mandate to include aging in place issues related to family caregiving, and develops and implements the Committee's 2007 recommendations including the following: requires the

Human Services and Public Housing Page 65 Executive Office on Aging to develop a cash and counseling project for non-Medicaid participants; allows the Kupuna Care program to include overnight, weekend, and emergency respite, and provide grants to caregivers and for home modification; appropriates $500,000 to the Kupuna Care program; establishes a Grandparents Raising Grandchildren Task Force; directs the Executive Office on Aging, in collaboration with the University of Hawaii, to conduct an inventory of respite care in Hawaii and identify the most promising approaches to expanding respite services; increases payments for adult residential care home types I and II, licensed developmental disabilities domiciliary homes, community care foster family homes, and certified adult foster homes, to begin on July 1, 2008; and appropriates $289,000 to the Department of Human Services to implement payment increases.

Recent statistics have found that more than one quarter of Hawaii households contain at least one individual providing informal, unpaid care for an adult aged 60 or older with physical or cognitive disabilities. As this percentage is only expected to increase over time, greater emphasis must be placed on accommodating employees' family needs in a way that encourages and enables them to continue to participate in the workforce. HB2520, HD3, SD2, CD1, establishes a working group to explore the provision of wage replacement benefits to employees who need time off from work to care for a family member with a serious health condition.

CHILDREN

As the children of incarcerated parents are six to seven times more likely to become incarcerated themselves, HB2763, HD1, SD1, CD1, re-establishes the Children of Incarcerated Parents Task Force until June 30, 2012, so that it may continue to develop programs to aid the children of incarcerated parents, strengthen family bonds, and help to break the cycle of crime and violence. Further, SB2345, SD1, HD1, CD1, establishes a set of eleven Guiding Principles to be used by state agencies when dealing with children whose parents are incarcerated.

CHILD PROTECTION

In recognition of the fact that a child left unattended in a car can too often have tragic consequences, either because the child suffers heatstroke, or is injured when the car is inadvertently put in gear, or is stolen, SB2245, SD1, HD2, CD1, makes it a violation of the traffic code to leave a child under the age of nine unattended in a motor vehicle for five minutes or longer. This measure also authorizes law enforcement officers, firefighters, and rescue team personnel to use reasonably necessary means to protect and remove an unattended child from a vehicle if the child is in physical danger or poses a danger to others.

FAMILY COURT

SB2054, SD2, HD2, CD1 (Act 114), establishes 16 factors that the family court shall consider when making a best interest of the child determination concerning child custody and visitation, SB2055, SD2, HD2, CD1, calls upon the Judiciary to define the requirements, standards of practice, ethics, policies, and procedures of child custody evaluators, with the

Page 66 Human Services and Public Housing assistance of a Child Custody Advisory Task Force, and report its findings and recommendations to the Legislature prior to the convening of the 2009 Regular Session.

FOSTER YOUTH

HB1356, HD2, SD2, CD1, increases the time periods during which a former foster youth may apply for and receive higher education board allowance benefits; and HB523, HD2, SD1, CD1, establishes a set of eight Guiding Principles for the Department of Human Services to abide by concerning the care and welfare of foster children.

HOUSING

HB3140, SD2 (Act 43) makes an emergency appropriation to the Hawaii Public Housing Authority to cover costs associated with increased liability insurance and critical shortfalls in federal subsidies.

LONG-TERM CARE

SB3255, SD2, HD2, CD1, establishes long term care policy goals, guiding principles, and a Long Term Care Commission to identify needed reforms of the long term care system, research program changes and resources necessary to meet the State's long term care public policy goals, and explore an array of funding options that may help to support the provision of long term care services.

Bills Passed

I. Adult Protection and Elder Affairs

Adult Protective Services. (SB2150, SD2, HD2, CD1) Expands the types of abuse from which vulnerable adults are protected, and expands the authority to investigate allegations of abuse, neglect, and financial exploitation. Amends definition and usage of term "dependent adult" to read "vulnerable adult" in portions of Hawaii Revised Statutes (HRS) chapter 346 relating to human services and adult protective services. Amends HRS section 346-222 by amending the definition of "abuse", and adding new definitions for "caregiver", "caregiver neglect", "financial exploitation", "physical abuse", "psychological abuse", "self- neglect", "sexual abuse", and "vulnerable adult". Repeals definition of the term "imminent abuse", which means that "there exists reasonable cause to believe that abuse [of the vulnerable adult] will occur or recur within the next ninety days", and replaces it with the phrase "is in danger of abuse if immediate action is not taken". Adds social workers to the list of professionals mandated to report abuse or the threat of abuse of a vulnerable adult. Creates an exception to abuse reporting requirements for clergy members and protected communications. Adds as a required party to an adult protective service hearing a representative of the facility in which the vulnerable adult resides or receives treatment. Adds the retired and senior volunteer program to the list of Department of Human Services

Human Services and Public Housing Page 67 (Department) programs for which criminal background record checks are conducted. Allows the Department to conduct criminal history record checks on contracted and subcontracted service providers and their current and prospective employees that provide home and community-based services under any other applicable section of the Social Security Act in addition to Section 1915(c).

Criminal History Background Checks; Social Services Programs. (SB3051, SD2, HD1, CD1) Permits the Department of Human Services (Department) to designate a third party to conduct certain criminal history record checks for certain individuals who provide services to vulnerable adults and children. Adds the retired and senior volunteer program to the list of Department programs for which criminal background record checks are conducted. Expands the list of individuals whose backgrounds may be looked into to include volunteers and other adults regularly present at the programs identified in Hawaii Revised Statutes (HRS) section 346-97. Allows individuals subject to a Department background check to provide consent to the Department or its designee. Mandates that the Department or its designee shall obtain criminal history record information on specified individuals for two years, and shall conduct criminal history name inquiries annually or biennially thereafter. Clarifies that an applicant for programs set forth in HRS section 346-97 shall be subject to criminal history record checks and adult abuse perpetrator checks, and shall provide consent for such checks to the Department or its designee. Requires the Department or its designee to conduct name inquiries into criminal history records and the adult protective service file for two years, and then annually or biennially thereafter depending on the licensure status of the employing home and community-based case management agency. Allows the Department to conduct criminal history record checks on contracted and subcontracted service providers and their current and prospective employees that provide home and community-based services under any other applicable section of the Social Security Act in addition to Section 1915(c).

Policy Advisory Board for Elder Affairs; Issuance of Policy. (SB2129, SD2, HD1; Vetoed 5/1/08) Would permit the Policy Advisory Board for Elder Affairs to testify before the Legislature on any matter related to its duties and responsibilities.

II. Asset Building

Economic Self-Sufficiency Standard. (SB2840, SD2, HD1, CD1) Requires the Department of Business, Economic Development, and Tourism (Department) to establish and update biennially a self-sufficiency standard, or an alternate cost of living standard that takes into account costs relating to housing, food, child care, transportation, health care, clothing and household expenses, federal and state tax obligations, family size, children's ages, geography, and the number of household wage earners. Requires the Department to report to the Legislature concerning the self-sufficiency standard prior to the convening of the Regular Session of 2009, and every odd-numbered year afterward. Requires the Department's report to address, among other things, the potential use of any federal funding to establish and update the self-sufficiency standard.

Taxation; Refunds; Electronic Deposit. (SB2838, SD2, HD1, CD1) Allows income tax refunds to be deposited electronically in a maximum of three checking or savings accounts for income tax returns that are filed electronically. Authorizes the Department of Taxation to modify and

Page 68 Human Services and Public Housing revise forms and computer systems to implement the new refund procedure. Requires the Director of Taxation to visit low-income communities statewide and on an annual basis to assist in the preparation of tax returns.

III. Care Giving and Long-Term Care

Caregivers; Caregiver Recognition Day. (HB2138, HD1; Act 6) Establishes Caregiver Recognition Day on the first Saturday of November. Defines "caregiver" as any person who has undertaken the care, custody, or physical assistance of an elderly or disabled person, including family members, relatives, or any person who has the desire, or a legal or contractual duty to care for the health, safety, and welfare of an elderly or disabled person, including owners, operators, employees, or staff of long-term care facilities and community home-based institutions. Declares that Caregiver Recognition Day shall not be construed as a state holiday.

Family Caregivers; Paid Family Leave; Working Group. (HB2520, HD3, SD2, CD1) Establishes a working group that reports to the Joint Legislative Committee on Aging in Place, to explore the provision of wage replacement benefits to employees who need time off from work to care for a family member with a serious health condition. Sets forth working group membership. Requires the Joint Legislative Committee on Aging in Place to report working group findings and recommendations to the Legislature. Sets the term of the working group to expire on June 30, 2009.

Joint Legislative Committee on Family Caregiving; Appropriations. (SB2830, SD2, HD2, CD1) Extends the term of the Joint Legislative Committee on Family Caregiving (Committee) from June 30, 2008, until June 30, 2010. Changes the Committee's name to the Joint Legislative Committee on Aging in Place. Requires the Committee to submit an additional report to the Legislature prior to the convening of the 2010 Regular Session. Expands the Committee's authorization to include aging in place issues related to family caregiving. Requires the Hawaii Aging and Disability Resource Center to report to the Committee on the development of its Hawaii county site and its "virtual" site. Requires the Executive Office of Aging to develop a cash and counseling project. Allows the Kupuna Care program to include overnight, weekend, and emergency respite, as well as provide grants to caregivers and for home modification. Appropriates $500,000 to the Kupuna Care program. Establishes a task force to focus on the needs and issues of grandparents raising grandchildren. Sets forth task force membership. Requires the task force to submit an interim and a final report to the Legislature. Sets the expiry date of the task force on June 30, 2009. Requests the Executive Office on Aging to continue its respite inventory project in collaboration with the University of Hawaii. Increases payments for level of care for adult residential care home types I and II, licensed developmental disabilities domiciliary homes, community care foster family homes, and certified adult foster homes, to begin on July 1, 2008. Appropriates $289,000 to the Department of Human Services to implement the payment increases.

Long-Term Care; Medicaid; Transfer of Funds; Federal Approval. (HB2062, HD1, SD2, CD1) Requires the Department of Human Services to apply to the federal Centers for Medicare and Medicaid Services to allow persons eligible to receive Medicaid-funded care in a nursing home facility to remain at home and receive home- and community-based long-

Human Services and Public Housing Page 69 term care; provided that the cost for the home- and community-based services does not exceed that of facility-based care.

Social Services; Long Term Care Commission; Appropriation. (SB3255, SD2, HD2, CD1) Establishes: (1) a set of eight Long Term Care Policy Goals for the State of Hawaii; (2) a set of seven Guiding Principles for the development of a Long Term Care System in Hawaii; and (3) a Long Term Care Commission (Commission) within the University of Hawaii College of Social Sciences Public Policy Center, for administrative purposes. Sets forth that the Commission shall have fifteen members, five members appointed by the Governor and five by each house of the Legislature, and five non-voting, ex-officio members who are the Directors of certain state departments, or their designees. Sets forth the duties of the Commission, which shall include the development of a five-year, comprehensive long term care plan to accomplish long term care policy goals. Permits the Commission to initiate studies, hire staff, and contract with third parties to conduct studies. Requires the Commission to submit: (1) an interim report to the Legislature no later than February 28, 2010, describing the progress made in the development of the five-year plan and preliminary proposed system reforms; and a final report to the Legislature no later than September 30, 2010, which shall include the final five-year plan, and a description and final recommendations regarding the financing of long term care services. States that the term of the Commission shall expire on November 30, 2010. Appropriates $100,000 for the Commission.

IV. Children and Families

Child Protection Act; Placement Preference. (SB2730, SD2, HD2, CD1) Establishes a preference for the placement of children in need of child protective services with an appropriate relative identified by the Department of Human Services (Department). Requires the Department and other authorized agencies to make reasonable efforts to identify all of a child's relatives who may provide foster placement within six months of assuming foster custody of the child. Requires the Department to provide: (1) An application concerning foster placement within fifteen days of an inquiry made by a child's relative; and (2) Specific reasons for denial and an explanation of administrative appeal procedures if a foster placement application is denied. Adds new definitions for "hanai relative" and "relative".

Children; Children of Incarcerated Parents; Guiding Principles. (SB2345, SD1, HD1, CD1) Establishes a set of eleven Guiding Principles to be used by state agencies when dealing with children whose parents are incarcerated.

Endangering Welfare of a Minor; Controlled Substances. (HB2346, HD2, SD2, CD1; Act 81) Expands the crime of endangering the welfare of a minor in the first degree, a class C felony, to include intentionally or knowingly causing or permitting a minor to inject, inhale, or otherwise introducing into the minor's body any Schedule I, II, III, or IV controlled substance that has not been prescribed for the minor by a physician, excluding the lawful use of medical marijuana. Extends the misdemeanor offense of endangering the welfare of a minor in the second degree to include recklessly causing or permitting a minor to inject, inhale, or otherwise introducing into the minor's body any Schedule I, II, III, or IV controlled substance that has not been prescribed for the minor by a physician, excluding the lawful

Page 70 Human Services and Public Housing use of medical marijuana. Creates an exception to the misdemeanor offense for mothers who breastfeed.

Family Court; Custody. (SB2054, SD2, HD2, CD1; Act 114) Establishes sixteen factors that the family court shall consider, but not be limited to, when making a determination under the best interest of the child standard concerning custody and visitation in actions for divorce, separation, annulment, separate maintenance, or any other proceeding where a dispute arises as to the custody of a minor child.

Family Law; Child Custody Evaluators. (SB2055, SD2 HD2, CD1) Defines court-appointed investigators or professional personnel attached to or assisting the family court in its child custody determinations as "child custody evaluators". Requires the Judiciary to:

• Define the requirements, standards of practice, ethics, policies, and procedures of child custody evaluators;

• Submit a report to the Legislature relating its findings, recommendations, and resource requirements to implement certain aspects of child custody evaluator appointment, standards enforcement, monitoring, and administrative appeal process; and

• Convene and obtain assistance from a child custody advisory task force to define the employment requirements and standards of child custody evaluators.

Former Foster Youth; Higher Education Board Allowance. (HB1356, HD2, SD2, CD1) Amends the definition of "former foster youth" to include individuals who were under the placement responsibility of the Department of Human Services when their custody was transferred to a legally responsible caregiver. Sets the application deadline for higher education board allowances at the former foster youth's attaining the age of twenty-one. Extends until June 30, 2009, the time frame during which a former foster youth who is between the ages of twenty-two years and twenty-six years on July 1, 2008, may apply for a higher education student board allowance (to benefit those who "aged-out" under the old law). Increases from twenty-one to twenty-six the age until which a former foster youth may receive higher education student board allowances. Caps the duration that the total higher education board allowance may be received to 60 months and subjects the allowances to the availability of State and federal funds.

Foster Children; Guiding Principles. (HB523, HD2, SD1, CD1) Establishes a set of eight Guiding Principles for the Department of Human Services to abide by concerning the care and welfare of foster children. Authorizes the family court to issue any necessary orders to the Departments of Education, Human Services, or Health to ensure adherence to the Guiding Principles. Requires the Department of Human Services to provide written information to all foster children aged twelve or older and their foster parents about available independent living programs and transitional planning services.

Motor Vehicles; Unattended Children. (SB2245, SD1, HD2, CD1) Makes it a violation of the statewide traffic code to leave a child under the age of nine unattended in a motor vehicle for five minutes or longer. Authorizes law enforcement officers, fire fighters, and rescue team personnel to use reasonably necessary means to protect and remove an unattended child from a motor vehicle upon determining that the child is in physical danger or poses a danger to others, and to report the matter to a police officer who may assume protective custody of

Human Services and Public Housing Page 71 the child if the person who left the child unattended cannot be located within a reasonable amount of time. Defines "unattended" as alone in a motor vehicle, or in a motor vehicle with another minor under the age of twelve. By October 1, 2008, requires the examiner of drivers to test driver's license applicants for knowledge of this offense and requires notice of law in rental cars.

Prisoners; Children; Incarcerated Parents; Task Force. (HB2763, HD1, SD1, CD1) Re-establishes the Children of Incarcerated Parents Task Force until June 30, 2012. Sets forth task force membership. Requires annual task force reports to the Legislature and the public.

V. Health Care

Disproportionate Share Hospital Allowance; Appropriation. (SB2041, HD1, CD1) Appropriates $5,774,340 to the Department of Human Services to match a 2008 federal Medicaid disproportionate share hospital appropriation of $7,500,000. The combined funding shall be used to cover rising health care costs and ensure that Hawaii's most vulnerable residents have continued access to health care.

Post-Partum and Interconception Care; QUEST. (HB2761, HD1, SD1, CD1) Requires the Department of Human Services to apply to the federal Centers for Medicare and Medicaid Services to amend the state Medicaid plan to extend the period of post-partum and interconception care from eight weeks to at least six months for women who participate in Hawaii QUEST, and report to the Legislature upon receiving the Centers' response. Defines "interconception care" as the "full scope of preventive and primary care services for women between pregnancies".

VI. Public Assistance Programs

Bridge to Hope Program; TANF. (HB2770, HD1, SD2; Act 82) Expands the Bridge to Hope program to enable all heads of households receiving financial assistance and participating in the First to Work program to pursue a range of educational activities beyond the federal limit of one year of vocational education.

Hawaii Disability Rights Center; Audit. (HB3352, HD2, SD2, CD1) Requires the Auditor to conduct a financial and management audit of the Hawaii Disability Rights Center (HDRC) and submit a report to the Legislature concerning HDRC's handling of state funds and its approach to resolving the conflict between its need to access patient records and a patient's right to privacy.

Language Access; Definitions; Language Access Advisory Council. (SB2395, SD2; Act 8) Clarifies and adds definitions relating to the language access laws. Expands Language Access Advisory Council membership to include representatives from the counties of Hawaii, Kauai, Maui, and Honolulu, and a representative from the Disability and Communication Access Board as an ex-officio member.

Temporary Assistance for Needy Families. (SB3061, HD1, CD1; Act 88) Changes the name of the Job Opportunities and Basic Skills ("JOBS") program to the First-to-Work program. Repeals

Page 72 Human Services and Public Housing the rules associated with the JOBS program. Requires the Department of Human Services to adopt rules consistent with applicable federal law for the First-to-Work program. Conforms state law to current federal law by deleting references to the Aid to Families with Dependent Children Act and the Job Opportunities and Basic Skills Act in the state First-to-Work program laws, and replacing them with references to the Temporary Assistance for Needy Families and Temporary Assistance for Other Needy Families laws.

VII. Public Housing

Emergency Appropriation; Hawaii Public Housing Authority. (HB3140, SD2; Act 43) Makes an emergency general funds appropriation of $3,067,955 for the Hawaii Public Housing Authority to repay the Department of Budget and Finance for a loan made to cover payroll costs and risk management costs for liability insurance for fiscal year 2006-2007, and to address a critical funding shortfall for the operational costs of its public housing programs for fiscal year 2007-2008.

Housing; Affordability. (HB2238, HD1, SD1) Requires that any public housing project constructed or managed with state or county funds with units either for sale or for rent shall remain "affordable" in perpetuity; "affordable" meaning "available for households with incomes at or below one hundred forty percent of the median family income as determined by the United States Department of Housing and Urban Development".

Public Housing Project; Intoxicating Liquor. (SB2141, HD1; Act 34) Prohibits liquor consumption on any public sidewalk or "common area" of a public housing project. Defines "common area" as including roofs, halls, corridors, lobbies, stairs, stairways, fire escapes, building entrances, basements, yards, gardens, recreational facilities, parking areas, storage spaces, and other parts of a housing project normally in common use or other areas designated by the Hawaii Public Housing Authority.

Rental Assistance; Housing. (HB2511, HD1, SD2, CD1) Permits a person who qualifies for a rent supplement under Hawaii Revised Statutes chapter 356D to take up to ninety days from the date of approval of the person's rent supplement application to secure a qualified rental dwelling.

VIII. Vocational Rehabilitation

Civil Service Law; Qualified Community Rehabilitation Programs. (HB2272, HD2, SD2, CD1) Extends the exemption from the county civil service laws for contracts for personal services to contracts with qualified community rehabilitation programs that provide building, custodial, and grounds maintenance services, provided that the contract term is no longer than one year and the contract involves costs of $850,000 or less. Requires the Department of Human Resources Development to report annually to the Legislature on expenditures of qualified community rehabilitation programs and related activities.

Human Services and Public Housing Page 73 Resolutions Adopted

I. Asset Building

Public Financial Education and Asset Building Task Force. (SCR92, SD1; SR52, SD1) Requests that the Chairs of the Senate Committee on Human Services and Public Housing and the House Committee on Human Services and Housing convene a statewide task force on public financial education and asset-building to develop policy recommendations concerning:

(1) Universal, matched savings accounts for newborns;

(2) Statewide standards for financial and economic education for public- and private- sector employees; and

(3) The elimination of asset limits as a bar to eligibility for public benefit programs.

Requests that the task force submit a report to the Legislature no later than twenty days prior to the convening of the Regular Session of 2010.

II. Children and Families

Shelter Admission; Youth Services; Department of Human Services; Study. (SCR106, SD1) Requests the Office of Youth Services and the Department of Human Services to convene a working group to conduct a study into safe shelter options for runaway and homeless youth. Requests the working group to submit a report to the Legislature concerning its findings and recommendations no later than twenty days prior to the convening of the Regular Session of 2009.

Shifting the Year of the Family Celebration from 2008 to 2009. (SCR8; SR3) Requesting that the Governor designate 2009 as the Year of the Family, reschedule the Year of the Family celebration from 2008 to 2009, and allow the Family Celebration Commission to continue implementing its plans for a Year of the Family celebration in 2009.

Task Force; Protocols; First Response; Child Protective Services. (SR59, SD1) Requires the Department of Human Services to:

(1) Convene a task force to establish protocols and training programs for first responders, including county police departments, sheriffs and other law enforcement agencies, the fire department, and emergency medical personnel, to use when coming into contact with children who may be the victims of or who are at risk of abuse;

(2) Report to the Legislature on the status of the development and the estimated cost of implementation of the protocols and training programs no later than twenty days prior to the convening of the Regular Session of 2009, and each year thereafter for three years.

Page 74 Human Services and Public Housing III. Domestic Violence

Domestic Violence; Purple Ribbon and Purple Arm Band Campaign. (HCR93, HD1, SD1; SR36, SD1) Encourages participation in the statewide Purple Ribbon and Purple Arm Band Campaign against domestic violence that symbolizes a community free of domestic violence, and promotes reflection, discussion, and personal and collective action to stop all forms of domestic violence.

IV. Emergency Preparedness and Special Needs

Condominiums; Emergency Preparedness. (SR47, SD2) Urging associations of apartment and condominium unit owners throughout the State to:

(1) Conduct voluntary surveys of the special needs of their residents;

(2) Develop emergency plans which include evacuation and shelter-in-place plans that address the special needs of senior and medically fragile residents;

(3) Distribute the plans to all residents and post the plans publicly where they may be viewed by residents and visitors; and

(4) Include in their annual statements filed with the Real Estate Commission any developed emergency plans that address the special needs of senior and medically fragile residents.

Natural Disaster Preparedness Training for At-Risk Communities. (SR118, SD1) Requests the University of Hawaii Natural Disaster Preparedness Training Center to include in its work program a component that addresses the needs of Hawaii's at-risk elderly and persons with disabilities that includes contributions from the Joint Legislative Committee on Family Caregiving, the Kupuna Caucus, and other interested organizations and individuals.

State Building Code; Assisted Living Facilities. (SR53, SD2) Urges the State Building Code Council to:

(1) Adopt expeditiously provisions in the International Building Code, 2006 edition, relating to evacuation assistance for assisted living or similar facility residents;

(2) Insert into the International Building Code the recommended amendments stated in the Department of Human Services' report to the Legislature as required by Senate Concurrent Resolution No. 144, S.D. 1 (2006); and

(3) Report to the Legislature no later than twenty days prior to the convening of the Regular Session of 2009.

Human Services and Public Housing Page 75 V. Health Care

Department of Human Services; Medicaid; Audit. (SCR124, SD1, HD1) Requests the Auditor to conduct a financial and management audit of the Department of Human Services' recent Request for Proposals concerning QUEST Expanded Access for the Aged, Blind, and Disabled. Requests the Auditor to submit a report of audit findings and recommendations to the Legislature no later than twenty days prior to the convening of the Regular Session of 2009. Requests the Department of Human Services to cooperate and assist the Auditor with the performance of the audit.

Leahi Hospital; Long-Term Care; Health; Task Force. (SR115, SD1) Requests the Oahu Regional Board of the Hawaii Health Systems Corporation to convene a task force to assist in developing a long-term care master plan for Leahi Hospital and adjacent state lands. Requests the task force to complete the master plan by December 31, 2010, and submit preliminary and final reports to the Legislature no later than twenty days prior to the convening of the Regular Sessions of 2009 and 2010, respectively.

VI. Public Housing

Kukui Gardens; Mayor Wright Homes; Master Plan. (SR82, SD1) Requests the Hawaii Public Housing Authority and the Hawaii Housing Finance and Development Corporation to:

(1) Convene a working group to create a master plan to redevelop Kukui Gardens and Mayor Wright Homes that utilizes the state-owned strip of land located on Liliha Street, and includes mixed use commercial and residential market rate housing as well as low- to moderate-income housing; and

(2) Submit a report of the working group findings and recommendations to the Legislature no later than twenty days prior to the convening of the Regular Session of 2009.

Public Housing Tenants; Transition into Permanent Housing. (HCR111, HD1, SD1) Urges Hawaii's congressional delegation to support legislative incentives for public housing tenants to transition to permanent housing, and to support federal rule changes that would require public housing tenants who exceed housing income limits to find market rental or permanent housing.

VII. Residential Care Homes

William S. Richardson School of Law; Adult Care Homes. (SR116, SD1) Requests the William S. Richardson School of Law to:

(1) Facilitate a discussion among Type II adult residential care home facility providers, advocates, stakeholders, community residents, and the public to provide an opportunity for comment and discussion concerning the impact that Type II adult residential care home facilities have on the neighborhoods in which they are located; and

Page 76 Human Services and Public Housing (2) Submit a report to the Legislature no later than twenty days prior to the convening of the 2009 Regular Session, relating to the impact that Type II adult residential care home facilities have on their respective communities and any potential mitigation measures.

VIII. Vocational Rehabilitation

Financial Audit; Hawaii Centers for Independent Living. (SCR200, SD1) Requests the Auditor to conduct a financial and management audit of the Hawaii Centers for Independent Living and report its findings and recommendations to the Legislature no later than twenty days prior to the convening of the Regular Session of 2009.

LRB Study on State Deaf and Hard of Hearing Facility. (SCR37, SD1) Requests the Legislative Reference Bureau to submit a report to the Legislature prior to the 2009 Regular Session concerning the establishment of a comprehensive center serving deaf and hard of hearing individuals. Requests the Vocational Rehabilitation and Services for the Blind Division of the Department of Human Services to assist in the study.

IX. Other Issues

National Monument for Women. (SR19, SD1) Requests the United States Congress to authorize the establishment of a National Monument for Women in Washington, D.C., to recognize and honor the leadership contributions of America's women.

Human Services and Public Housing Page 77

Page 78 Human Services and Public Housing INTERGOVERNMENTAL AND MILITARY AFFAIRS

The Committee on Intergovernmental and Military Affairs has jurisdiction over programs relating to county and federal relations, matters of concern to the counties; civil defense, disaster readiness, and military and veterans' affairs.

Highlights

Neighborhood Board System. The 2008 Legislature supported the Neighborhood Board System and its objective to provide neighborhoods and Neighborhood Boards the opportunity to increase and assure effective citizen participation in the decisions of government. HB2730, HD1, SD1, CD1, removes unnecessary barriers that prevent Neighborhood Board members from participating in planning for their communities by:

• Authorizing Neighborhood Boards to receive information even if there is no quorum, enabling attending members and public representatives to be apprised of time-sensitive notices and announcements, without delay;

• Authorizing Neighborhood Boards to receive public input on issues not specifically noticed for consideration at a meeting, provided that the Board does not make a decision relating to the matter at that meeting;

• Permitting less than a quorum of a Neighborhood Board to attend informational meetings or presentations on matters relating to official board business, provided that the presentation is not specifically and exclusively organized for the board members;

• Permitting Neighborhood Board members to participate in discussions, as part of an informational meeting or presentation, provided that no commitment is made regarding the vote on the issue; and

• Permitting discussion of an unanticipated event that occurs after the public notice of a Neighborhood Board meeting has been issued, if discussion is necessary for the public health, welfare, and safety.

Civil Defense Disaster Relief Appropriations. SB788, SD2 (Act 94), extends emergency appropriations relating to civil defense disaster relief, including appropriations to cover the costs of recovery and remediation efforts as a result of storms in February and March 2006, stabilize and repair storm-damaged slopes and drainage ways and systems, hire consultants to ensure dam safety, and investigate other issues relating to dam and reservoir failure and safety. While much of the work has been completed, some projects have been delayed due to unforeseen circumstances. The extension is necessary to secure the state/federal funded projects.

Public Land Liability; Public Beach Parks. Many of Hawaii's improved and unimproved public lands pose a risk of injury to users from dangerous natural conditions. Without some protection from liability for injuries occurring on public lands, many recreational areas would have to be closed. SB2170, SD1, HD1, CD1, removes the exclusion of public beach parks

Intergovernmental and Military Affairs Page 79 provided for in Act 190, Session Laws of Hawaii 1996 ("Act 190"), from the definition of "improved public lands" in Act 82, Session Laws of Hawaii 2003 ("Act 82"). Accordingly, this measure clarifies that Act 82 applies to public beach parks, thereby protecting the counties from liability as a result of natural conditions on or near a public beach park.

Educational Benefits for Hawaii Guard Service Members; Eligibility. SR119, SD1, requests the State Department of Defense to provide educational benefits for members of the Hawaii National Guard who are called to active duty by tolling the period of eligibility for such benefits during the period of active duty or providing a fixed extended period of time to utilize the educational benefits. This will enable Hawaii National Guard members to fully utilize the educational benefits they have earned.

Federal Financial Assistance for Persons in the United States Under the Compacts of Free Association. (SR43) In 1986, the United States entered into a Compact of Free Association (COFA) with the Federated States of Micronesia, the Republic of the Marshall Islands, and the Republic of Palau. The terms of COFA established mutually beneficial rights and obligations in economic development and defense, and created the right of COFA citizens to freely travel to work and reside in the United States without a durational limit. Many COFA migrants arrive with serious medical needs, and require financial and housing assistance because of the lack of resources available to them. Despite losing access to federal funds for services to COFA migrants because of the Personal Responsibility Work Opportunities Reconciliation Act, the State has continued to make the services available through equivalent state-funded services to address the social, educational, public safety, and medical needs of the COFA citizens. In 2006, the cost reported to state agencies to provide services for COFA migrants was over $91,000,000, while the federal assistance to the State as Compact Impact Assistance was approximately $10,600,000. SR43 supports the purpose of COFA by urging the President and United States Congress to support legislation that would benefit COFA migrants who are in the United States, regardless of the state or territory in which they reside, and support the stated intent of Congress that the relationship created by COFA should not cause adverse consequences to the states.

Fire Safety; Smoke Detectors in Every Home by 2010. Smoke detectors play a vital role in reducing deaths, injuries, and loss from fire and have contributed to an almost 50 percent decrease in fire deaths since the late 1970s. However, the Legislature recognizes that lower- income families and some senior citizens may not be able to afford home smoke detectors, and to be effective, smoke detectors must be properly installed and maintained.

HCR147, HD1, SD1 seeks to promote fire safety in Hawaii homes by supporting the installation and use of smoke detectors in every home in Hawaii by 2010; requesting the Hawaii Fire Chiefs Association and Hawaii State Fire Council to provide free smoke detectors to low- income families and senior citizens; urging local fire departments to consider providing free smoke detectors to low-income homes in exchange for permission to conduct a fire inspection of the home; urging the designation of April 15th as the day to check smoke detectors to ensure they are working properly; requesting the Hawaii Public Housing Authority to consider installing smoke detectors in all existing public housing projects and making a working smoke detector a requirement of residency; and urging Hawaii's fire departments and senior citizens advocate organizations to designate "Fire Safe Senior Day" during Fire Prevention Week, for the purpose of educating seniors about the need for these life saving devices.

Page 80 Intergovernmental and Military Affairs Bills Passed

I. Intergovernmental Affairs

Jurisdiction of Circuit Courts; Impeachment Proceedings Against County Officers. (HB660, SD1, CD1; Act 107) Expands the jurisdiction of the Circuit Courts to include impeachment proceedings against appointed or elected county officers.

Land Use Commission; District Boundary Declassification; County General Plan; Community and Development Plans. (HB2523; Act 26) Requires the State Land Use Commission to specifically consider the county general plan and all community, development, or community development plans adopted pursuant to the county general plan, in its review of any petition for reclassification of district boundaries.

Neighborhood Board Meetings; Legal Requirements. (HB2730, HD1, SD1, CD1) Establishes the legal requirements for neighborhood board meetings relating to the agenda and public notice of meetings, receiving information or testimony at a meeting without a quorum, participation or attendance of board members at informational meetings or presentations, and discussions, and the discussion of unanticipated events at meetings.

Public Land Liability; Public Beach Parks. (SB2170, SD1, HD1, CD1) Protects the counties from liability as a result of natural conditions on or near a public beach park by including public beach parks in the definition of "improved public lands."

State Fire Code; State Building Code. (HB2467, HD2; Act 18) Clarifies the procedure for county adoption of the State Fire Code and specifies that the State Fire Code shall become part of the State Building Code. Requires the State to conduct fire and safety inspections at state airport facilities on an annual basis.

II. Military Affairs

Civil Defense Disaster Relief. (SB788, SD2; Act 94) Extends from June 30, 2008 to June 30, 2009 the lapsing date of various emergency appropriations relating to civil defense disaster relief, including appropriations to cover the costs of recovery and remediation efforts as a result of storms in February and March 2006; stabilize and repair storm-damaged slopes and drainage ways and systems, hire consultants to ensure dam safety, and investigate other issues relating to dam and reservoir failure and safety.

Intergovernmental and Military Affairs Page 81 Resolutions Adopted

I. Intergovernmental Affairs

Federal Financial Assistance For Persons in the United States Under the Compacts of Free Association. (SR43) Supports federal financial assistance for persons present in the United States under the Compacts of Free Association (COFA) and supports the intent of Congress, which is to not cause any adverse consequences on those jurisdictions servicing the COFA migrants.

Fire Safety; Smoke Detectors in Every Home by 2010. (HCR147, HD1, SD1) Promotes fire safety by:

• Supporting the installation and use of smoke detectors in every home in Hawaii by 2010;

• Requesting the Hawaii Fire Chiefs Association and Hawaii State Fire Council to provide free smoke detectors to low-income families and senior citizens;

• Urging local fire departments to consider providing free smoke detectors to low-income homes in exchange for permission to conduct a fire inspection of the home;

• Urging the designation of April 15th as the day to check smoke detectors to ensure they are working properly;

• Requesting the Hawaii Public Housing Authority to consider installing smoke detectors in all existing public housing projects and making a working smoke detector a requirement of residency; and

• Urging Hawaii's fire departments and senior citizen advocate organizations to designate "Fire Safe Senior Day" during Fire Prevention Week, for the purpose of educating seniors about the need for these life saving devices.

II. Military Affairs

Educational Benefits for Hawaii Guard Service Members; Eligibility. (SR119, SD1) Requests the State Department of Defense to provide educational benefits for members of the Hawaii National Guard who are called to active duty by tolling the period of eligibility during the time the guard service member is called to active duty or providing a fixed extended period of time to utilize the educational benefits.

Invasive Plant Species and Excessive Foliage; Waipahu Coastline; U.S. Navy Clean-up. (HCR194, SD1) Requests the U.S. Navy to clear the shoreline section of lower Waipahu adjacent to West Loch Estates from invasive plant-life and excessive foliage for safety and aesthetic purposes.

State Civil Defense's Lualualei's Emergency Shelter for Civilians. (HCR114, SD1) Requests the Civil Defense Division of the Department of Defense to conduct a study to determine the feasibility of allowing facilities at Lualualei, that are owned by the United States Navy, to be

Page 82 Intergovernmental and Military Affairs used as an emergency shelter for civilians. The feasibility study should examine any necessary agreements between the State and the United States Navy, the sufficiency and capacity of the facilities to provide emergency shelter, logistical challenges to making all or part of the facilities available to civilians for use during an emergency, any costs involved, and any other pertinent issues.

United States Navy; F-14 Tomcat's United States Postal Service First Class Commemorative Stamp. (SCR47, SD1; SR22, SD1) Requests the United States Postal Service to commemorate the honorable service of the United States Navy's freedom fighting F-14 Tomcat by placing its likeness on a first class stamp.

Intergovernmental and Military Affairs Page 83

Page 84 Intergovernmental and Military Affairs JUDICIARY AND LABOR

The Committee on Judiciary and Labor has jurisdiction over programs relating to the courts; crime prevention and control, including juvenile justice matters; criminal code revision; statutory revision; campaign spending and elections; ethics; constitutional matters; the Attorney General, Public Defender and judiciary; government records and information practices; individual rights and civil liberties; public officers and employees, labor, employment opportunities and training, labor-management relations, collective bargaining; the public employees retirement system and the Hawaii public employees health fund.

Highlights

ELECTIONS

Clean elections, or the public financing of political campaigns, are a proven reform to give voters more control over government, make politicians accountable to constituents rather than campaign contributors, save taxpayers money and level the playing field by giving all citizens a fair shot at getting elected. Many voters are eager for this kind of significant change. Seven states and two cities already have voluntary comprehensive public funding of elections in place: Arizona, Connecticut, Maine, New Jersey, New Mexico, North Carolina, Vermont, Albuquerque, New Mexico, and Portland, Oregon. The Hawaii County Council is offering the Hawaii County Council elections as a test case for total public election financing. The Legislature believes that public financing of campaigns has promising potential and should be explored on a pilot basis to determine if it fulfills its promise.

HB661 HD1, SD3, CD1 enacts the Pilot Comprehensive Public Funding for Elections to the Hawaii County Council project. Under the pilot project, each qualifying council candidate in the nine Big Island council districts who wants to participate would be provided enough public funding to run a credible campaign without accepting any significant private contributions. To qualify for public funding, each candidate would have to collect a signature and a $5 donation from 200 registered voters in the council district where that candidate is running. Qualifying candidates could then receive funding from the State amounting to 90 percent of the average amount spent by the winners in the previous two council races in that district.

Candidates not participating would still be free to raise and spend money under the existing campaign spending law, but candidates who accept public financing under the new system would not be able to accept private contributions other than the initial $5 qualifying donations.

The money to finance the Big Island pilot project would come from the Hawai'i Election Campaign Fund, which is financed with voluntary contributions by taxpayers who donate to the fund by checking a box on their state tax returns.

The proposed Big Island test of public financing would last for three election cycles starting in 2010. The cost of the pilot project would be capped at $300,000 in total for all candidates per election cycle.

Judiciary and Labor Page 85

CHARITABLE ORGANIZATIONS REGISTRATION

SB3171, SD2, HD2, CD1, enacts new statutory provisions regulating charitable organizations, including provisions regarding registration, financial reporting, fundraising, and investigations by the Department of Attorney General for violations.

Hawaii has more than 5,000 charities and nonprofit organizations that employ 41,000 individuals who provide needed services to Hawaii residents. Hawaii charities have revenues over $2,000,000,000 and pay over $1,000,000,000 in wages. According to a study conducted in 2002, local residents made $430,000,000 worth of cash and in-kind donations in one year to Hawaii and national charities. However, Hawaii is one of only eleven states that do not require charities to register with a state agency. Nonprofit experts have noted that Hawaii's oversight of charities is one of the weakest in the nation. According to a 2004 survey, Hawaii was ranked last in the number of state positions budgeted for charity oversight and enforcement. New York had fifty-five budgeted positions, Pennsylvania had thirty positions, and Oregon had nearly twenty positions. Hawaii has a single Deputy Attorney General who serves on a part-time basis to oversee charities in the State.

The Legislature believes that a registration system is needed for charities to provide the State with valuable information on which nonprofit groups are raising funds, what programs these groups seek to fund, and how these groups are spending collected funds. Registration can help enforcement officials spot red flags, such as questionable transactions or compensation deals, and answer questions from the public. The review of annual filings may also serve as a deterrent to abuse. Before making a contribution, donors could find out if an organization is a legitimate charity and determine if the group has provided the State with information on its finances.

CRIME

In the world of human trafficking, men, women, and children are bought, sold, and held against their will in slave-like conditions. People are trafficked and forced to work in the commercial sex trade, sweatshops, agricultural settings, domestic service, and other types of servitude, for basic food and shelter. SB2212, SD1, HD2, CD1, makes it an offense of kidnapping for a person to intentionally and knowingly restrain another person with the intent to obtain the labor or services of that person, regardless of whether these actions are related to the collection of a debt. The measure also clarifies offense of prostitution in the first degree to include advancing prostitution by compelling a person by force, threat, or intimidation to engage in prostitution, or to profit from such coercive conduct by another.

The widespread use and acceptance of the Internet and computers as tools for social networking and the anonymity it appears to provide, subject children and teens to a greater risk for victimization by persons who seek out minors for sexual purposes. Perhaps no class of individuals is more vulnerable than our children. Each day there are media reports of countless numbers of online predators utilizing the Internet to target and prey upon innocent and unsuspecting children. Unfortunately, these predators abuse modern day technology to covertly invade what is considered to be the most secure of places, the home. Sadly, there have been numerous real life cases that have ended in unimaginable tragedy. HB3040, HD1, SD1, CD1, creates the misdemeanor offense of indecent electronic display to a child for any

Page 86 Judiciary and Labor person who intentionally masturbates or intentionally exposes the genitals in a lewd or lascivious manner live over a computer online service, internet service, or local bulletin board service and who knows or should know or has reason to believe that the transmission is viewed on a computer or other electronic device by:

(1) A minor known by the person to be under the age of eighteen years;

(2) Another person, in reckless disregard of the risk that the other person is under the age of eighteen years and the other person is under the age of eighteen years; or

(3) Another person who represents that person to be under the age of eighteen years.

HB3040, HD1, SD1, CD1, also provides for a mandatory indefinite term of imprisonment of up to ten years for the class B felony, without the possibility of probation, for the offense of electronic enticement of a child in the first degree.

HB3040, HD1, SD1, CD1, also requires the sex offender registration information to include certain specified additional information to identify and locate the offender; and requires each covered offender to report in person every five years until June 30, 2009, and beginning on July 1, 2009, every year, within the thirty-day period following the offender's date of birth, to the chief of police where the covered offender resides, or to such other department or agency that may be designated by the Attorney General.

Current Hawaii law on prostitution does not specifically target the person who solicits a prostitute. HB3002, HD1, SD1, CD1, creates the misdemeanor offense of habitual solicitation of prostitution if the person is a habitual prostitution offender and pays, agrees to pay, or offers to pay a fee to another person to engage in sexual conduct. This measure, for lack of better terminology, is commonly referred to as a "john law." A person has the status of a "habitual prostitution offender" if the person, at the time of the conduct for which the person is charged, had two or more convictions within ten years of the instant offense for prostitution, street solicitation of prostitution, habitual solicitation of prostitution, an offense of any other jurisdiction that is comparable to one of the foregoing offenses, or any combination of these offenses.

ANIMAL HOARDING

SB3203, SD1, HD1, CD1, creates the misdemeanor offense of animal hoarding if a person intentionally, knowingly, or recklessly: (1) possesses more than 20 dogs, cats, or a combination of dogs and cats; (2) fails to provide necessary sustenance for each dog or cat; and (3) fails to correct the conditions under which the dogs or cats are living, where conditions injurious to the dogs', cats', or owner's health and well-being result from the person's failure to provide necessary sustenance. This measure is in response to recent incidences of the keeping of a large number of animals, typically dogs and cats, without providing them adequate care.

LABOR

Workers' compensation provides insurance to cover medical care and compensation for employees who are injured in the course of employment, in exchange for the mandatory

Judiciary and Labor Page 87 relinquishment of the employee's right to sue his or her employer for the tort of negligence. However, the medical condition of the injured worker is a continuing source of dispute between the worker and the worker's employer or insurer. Although the workers' compensation system is intended to be an administrative resolution process, contention relating to the medical diagnosis, treatment, and compensation of an injured worker resembles an adversarial proceeding much like court litigation. The Legislature took steps to mitigate the contentious elements of workers' compensation law.

Temporary Total Disability Benefits (TTD). Employers and their carriers sometimes engage in the practice of routinely denying benefits "pending investigation". The routine denial of benefits without valid reasons imposes undue financial hardships upon injured employees and in some cases, has forced injured employees to return to work prematurely.

HB2386, SD2, CD1, requires the payment of temporary total disability (TTD) benefits to be terminated only upon order of the Director of Labor and Industrial Relations or if the employee's treating physician determines that the employee is able to resume work and the employer has made a bona fide offer of suitable work within the employee's medical restrictions. The measure sets a 14-day deadline for the employee and employer to submit position papers to the Director on a request to review a benefit termination decision and authorizes the Director to issue a decision, without a hearing, within 30 days, on whether TTD benefits should have been discontinued and, if so, the date on which the discontinuation should have occurred. The employer is allowed to request that a credit be issued for benefits paid by an employer after the discontinuation date. Attorney's fees and costs shall be paid by the non-compliant employer. Where a work injury causes temporary total disability and payment of compensation does not begin within 30 days of the date of injury, the injured employee is entitled to receive a weekly benefit equal to 70 percent of the injured employee's average weekly wages, subject to the limitations on weekly benefit rates, or if the employee's average weekly wages are less than the maximum weekly benefit rate, at the rate of 100 percent of the employee's average weekly wages. The Director is required to convene a working group, consisting of the Director and other members selected by the Director from representatives of employer and employee organizations, including labor unions, to study the foregoing TTD issues and report to the Legislature prior to the convening of the Regular Session of 2009. The measure is effective upon approval, unless the working group reports to the Legislature that it has not reached a consensus in resolving the concerns raised, in which case July 1, 2009 shall be the effective date.

Independent Medical Examinations (IME). The impartiality in the conduct of IMEs and permanent impairment rating examinations needs to be assured. The Legislature believes that mutual selection of a physician is worth an attempt on a trial basis to evaluate whether processing of workers' compensation claims can be expedited and whether expenses can be reduced. HB2929, HD1, SD1, allows the employer, after an injury and after a claim is filed by the injured employee and upon mutual agreement of the parties, to appoint a qualified physician, paid by the employer, to conduct an IME or a permanent impairment rating examination of the injured employee, and report to the employer. The employer, if the parties cannot agree on a physician to perform the IME, or permanent impairment rating examination, may request in writing that the Director of Labor and Industrial Relations appoint a physician who is licensed to practice in Hawaii in a relevant medical specialty and willing to undertake the examination within the time frames set by the measure. The Director is required to keep and maintain a list of qualified physicians including their respective qualifications. The measure also prohibits an IME and a permanent impairment rating

Page 88 Judiciary and Labor examination from being combined into a single medical examination unless the injured employee consents in writing prior to the scheduling of the examinations. The Director, appellate board, or court is prohibited from ordering more than one employer-requested IME and one permanent impairment rating per case, unless valid reasons exist with regard to the medical progress of the employee's treatment. If an employee unreasonably refuses to submit to, or in any way unreasonably obstructs an examination, the employee's right to claim compensation for the work injury shall be suspended until the unreasonable refusal or obstruction ceases and no compensation shall be payable for the period during which the refusal or obstruction continues. The cost of conducting the ordered IME is limited to the complex consultation charges governed by the medical fee schedule. Every physician selected to perform IMEs or permanent impairment rating examinations is required to be currently licensed in Hawaii; provided that for claimants whose residency is not Hawaii, the physicians performing the IME or permanent impairment rating shall be licensed in the state where the claimant has resided during the five years immediately preceding the examination. The employer may, when an injured employee has attained medical stability as determined by the injured employee's attending physician, appoint a physician, paid by the employer and selected by agreement of the parties, who shall conduct a permanent impairment rating examination of the injured employee. The measure defines "medical stability" to mean that the injured employee's medical condition is well stabilized so that no further improvement of the work injury can be expected from further medical treatment and continued medical care will only prevent deterioration of the condition. The measure repeals section 386-79, HRS, relating to medical examination by an employer's physician. The measure is effective on July 1, 2008, and sunsets on July 1, 2011.

Independent Medical Examination (IME) Working Group. The Legislature recognizes the importance of independent medical examinations in the workers' compensation claim process. However, independent medical examinations occur frequently and can become costly. HB2387, HD1, SD2, establishes a working group on funding for workers' compensation independent medical examinations, to be placed under the Department of Labor and Industrial Relations for administrative purposes. The working group is required to study and determine the alternative methods or combination of methods of paying impartial physicians to conduct medical examinations, with a view toward providing equity and fairness in funding the examinations, so that the employer, employer's insurer, special compensation fund, and state general fund are not disproportionately burdened or otherwise disadvantaged in paying for the examinations. The working group is composed of one representative from each of the following entities, to be selected by that entity:

(1) Department of Labor and Industrial Relations;

(2) Department of Human Resources Development;

(3) Hawaii Government Employees Association;

(4) United Public Workers Local 646;

(5) ILWU Local 142;

(6) The Chamber of Commerce of Hawaii;

(7) American Insurance Association;

Judiciary and Labor Page 89

(8) Hawaii Insurers Council;

(9) American Physical Therapy Association;

(10) Hawaii State Chiropractic Association;

(11) Hawaii Medical Association;

(12) Hawaii State Bar Association; and

(13) Hawaiian Electric Company, Incorporated.

The bill requires a report of findings and recommendations, including suggested legislation, to the Legislature prior to the convening of the Regular Session of 2009. The working group sunsets on May 15, 2009.

Medical Treatment. Although proper medical treatment is the best method of returning an employee to gainful employment in a timely and efficient manner, the adversarial nature of the workers' compensation system often makes medical treatment a point of contention between the employee and employer. The Legislature believes that ensuring that medical treatment of an employee is continued until a decision is rendered by the Director of Labor and Industrial Relations on the appropriateness of the treatment, is in the best interest of both the employee and employer. HB2388, HD1, SD2, CD1, provides that, for workers' compensation purposes when there is a dispute between an employee and the employer or the employer's insurer regarding the employee's proposed treatment plan or the continuation of medical services, the employee is required to continue to receive essential medical services prescribed by the treating physician necessary to prevent deterioration or further injury until the Director of Labor and Industrial Relations issues a decision on whether the treatment plan or medical services should be continued. The Director will make a decision within thirty days of the filing of a dispute. The Director, if the Director determines that medical services pursuant to the treatment plan should be or should have been discontinued, will designate the date after which medical services for that treatment plan are denied. The employer or the employer's insurer may recover from the employee's qualified personal health care provider or from any other appropriate occupational or non- occupational insurer, all the sums paid for medical services rendered after the date designated by the Director. The employee is prohibited from being charged for the disallowed services, unless the services were obtained fraudulently. The attending physician, employee, employer, or insurance carrier may request in writing that the Director review the denial of the treatment plan or the continuation of medical services. The bill does not apply to disputes resolved prior to July 1, 2008.

Page 90 Judiciary and Labor Bills Passed

I. Judiciary

CIVIL LAW

Bail Agents; Sureties; Regulation. (SB1961, SD1, HD1, CD1) Establishes grounds for the denial, nonrenewal, suspension, or revocation of a bail agent's insurance producer's license. Establishes fiduciary responsibilities for bail agents. Prohibits an attorney who is a bail agent from representing a person to whom the attorney has furnished bail for compensation. Defines the term "bail agent".

Charitable Trusts and Nonprofit Organizations; Registration; Financial Reports and Disclosure. (SB3171, SD2, HD2, CD1) Requires every public benefit corporation domiciled in Hawaii, except for charitable organization that are specifically exempted, to register with the Department of the Attorney General prior to conducting any solicitation or prior to having any solicitation conducted on its behalf by others. Requires every charitable organization that is required to register to annually file with the Attorney General a report for its most recently completed fiscal year, and to pay a graduated filing fee based upon its income and receipts during the time covered by the report. Requires a charitable organization with gross revenue in excess of $500,000 in the year covered by the report to include with its annual financial report, an audit report prepared by a certified public accountant. Exempts:

(1) Any duly organized religious corporation, institution, or society;

(2) Any parent-teacher association or educational institution, the curricula of which in whole or in part are registered or approved by any state or the United States either directly or by acceptance of accreditation by an accrediting body;

(3) Any nonprofit hospital licensed by the State or any similar provision of the laws of any other state;

(4) Any governmental unit or instrumentality of any state or the United States;

(5) Any person who solicits solely for the benefit of organizations described in (1) to (4); and

(6) Any charitable organization that normally receives less than $25,000 in contributions annually, if the organization does not compensate any person primarily to conduct solicitations.

Allows the Attorney General, on its own motion or on complaint of any person, to conduct an investigation to determine whether any person has violated or is about to violate the registration, disclosure, and reporting requirements for charitable organizations and any prohibited act under existing law pertaining to the solicitation of funds from the public, including the subpoena of documentary material, issue of subpoenas, administration of an oath or affirmation, and holding of hearings on any matter under investigation.

Judiciary and Labor Page 91 Requires a professional solicitor to file with the Attorney General a financial report of gross revenue from Hawaii donors and national gross revenue from a solicitation activity or campaign.

Requires the commercial co-venturer to file a copy of the written consent with the Department of Commerce and Consumer Affairs not less than ten days prior to the commencement of the charitable sales promotion within this State, and requires an authorized representative of the charitable organization and the commercial co-venturer to sign the written consent, and the terms of the written consent shall include specified information.

Defines "gross revenue" as income of any kind from all sources, including all amounts received as the result of any solicitation by a professional solicitor.

Provides that information in any registration statement concerning the residential addresses of any officer or director or that identifies a charitable organization's financial or banking accounts shall be confidential under the public records law.

Prohibits a charitable organization from using the services of an unregistered professional solicitor or professional fundraising counsel.

Authorizes the Attorney General to revoke or suspend the registration of any charitable organization, professional fundraising counsel, or professional solicitor whenever the attorney general finds that a charitable organization, professional fundraising counsel, or professional solicitor, or an agent, servant, or employee thereof has violated or is in violation of the statutory requirements for charitable organizations, or has made a material false statement in one of its filings.

Allows the Attorney General to apply to the Circuit Court for the First Circuit, State of Hawaii, for relief, and authorizes the court to issue a temporary injunction or a permanent injunction to restrain violations, appoint a receiver, order restitution or an accounting, or grant other relief as may be appropriate to ensure the due application of charitable funds.

Requires that registration and renewal registration, surety bonds, and contracts be filed with the Attorney General electronically and may require the use of electronic signatures.

Requires each registration and renewal registration to contain specified information.

Makes an appropriation of $238,725 from the Solicitation of Funds for Charitable Purposes Special Fund for fiscal year 2008-2009 to the Department of the Attorney General to hire personnel for purposes of the Act.

Takes effect January 1, 2009, except that amendments relating to commercial co-venturers, the confidentiality of registration statements, the timely filing of registration statements, annual or financial reports or other statements, the prohibitions against the use of unregistered professional solicitors or fundraising counsel, Attorney General applications to the Circuit Court, and registration and renewal registration shall take effect on July 1, 2008. Requires any charitable organization required to register to file an annual financial report with the Attorney General, no later than eight months following the close of its 2008 taxable year, together with the statutorily-required fees.

Page 92 Judiciary and Labor

Child Support Enforcement Agency; Duties. (SB2977, SD1, HD2, CD1) Requires the Child Support Enforcement Agency to establish and use procedures for notifying a custodial parent of any income tax refund setoff retained by the State, where medical support rights have been assigned to the State and the income tax refund setoff is applied to amounts designated in the child support order for medical purposes.

Specifies the duties of an additional Assistant Administrator to serve as the policy administrator of the Child Support Enforcement Agency to, among other things, develop and implement comprehensive policy and planning documents to guide operations to successful outcomes, including federal performance reporting and interstate activities.

Allows the Child Support Enforcement Agency on its own behalf, to request a hearing after the commencement of an administrative proceeding. Requires the Agency, as an alternative to the hearing officer, to sign proposed orders as the final order in an action, upon the parties failure to timely request a hearing.

Transfers civil service personnel working in the Family Support Division of the County of Kauai to the Department of the Attorney General, and establishes two temporary civil service positions in the Department. Requires the transfer of appropriations, records, equipment, and other items to the Department on October 1, 2008.

Controlled Substances; Pain Patients Bill of Rights. (SB2157, SD1, HD2, CD1) Clarifies the Pain Patients Bill of Rights by providing that the rights shall be guided by the medical principle that physical tolerance and dependence are normal consequences of sustained use of opiate medication, distinguishable from psychological dependency or addiction that bears no relationship to pain experienced by a patient. Characterizes psychological dependency as a patient's compulsion to take a drug notwithstanding the fact that the patient knows the harmful and destructive effect of the drug on the patient.

Distinguishes treatment of pain as opposed to feeding a psychological need. States that a patient who suffers severe acute pain or severe chronic pain secondary to a diagnosis in any form of disease and chronic conditions may be entitled to receive a prescription of opiate medication for the treatment of the pain, if requested by that patient, under certain specified conditions.

Increases the time period from three to seven days in which a schedule II controlled substance prescription is required to be filled.

Evidence; Journalists and Newscasters; Compellable Testimony. (HB2557, HD1, SD1, CD1) Enacts a shield law for journalists, which provide that a journalist or newscaster presently or previously employed by or otherwise professionally associated with any newspaper or magazine or any digital version thereof operated by the same organization, a news agency, press association, wire service, or radio or television transmission station or network, shall not be required by a legislative, executive, or judicial officer or body, or any other authority having the power to compel testimony or the production of evidence, to disclose, by subpoena or otherwise, certain specified information. Extends protections to individuals who claim the privilege if they can demonstrate by clear and convincing evidence certain specified prerequisites. Delineates when the privilege does not apply. Clarifies that no fine

Judiciary and Labor Page 93 or imprisonment shall be imposed against a person claiming the privilege for refusal to disclose information privileged pursuant to this Act. Sunsets June 30, 2011.

Firearm Owner; Liability; State or Counties. (HB2204, HD1, SD1, CD1) Provides that the absolute liability of a firearm owner for the discharge of a firearm, which proximately causes personal injury or property damage to any person, shall not apply to the State or counties for the use of a firearm owned by the State or county and used by a law enforcement officer employed by the State or county, outside of the course and scope of employment as a law enforcement officer. Clarifies that the State or counties are not relieved from any other tort liability that may be applicable to the State or counties.

Intoxicating Liquor. (HB2253, HD2, SD1, CD1) Clarifies, updates, makes technical corrections, and conforming amendments to the intoxicating liquor law to reflect current practices and procedures relating to licensing, hearings, and other regulatory matters.

Police Officers; Representation by Counsel. (HB987; HD1, SD2; Vetoed 3/19/08) Requires a police officer to be represented and defended by the county corporation counsel, the county attorney, or private counsel employed and paid for by the county, for acts done in the performance of the officer's duty, for: (1) any action while in a duty status or while the police officer is on duty; (2) any action performed by an off-duty police officer while effecting an arrest or performing any other police duty; or (3) any action performed by the police officer while on special duty status.

With respect to the determination of whether the act for which the police officer is being prosecuted was committed, in the performance of the police officer's duty, this measure provides that if the county attorney or corporation counsel of the county in which the police officer is serving fails to provide the Police Commission with a recommendation within seven days of the Commission's request, the discretion to make a recommendation shall be deemed waived and the Police Commission may make a determination without considering any recommendation by the county attorney or corporation counsel. Specifies that the determination of the Police Commission is conclusive, but is subject to judicial review.

Public Agency Meetings; On-Site Inspections. (SB3105, SD1; Act 20) Allows a board to hold a limited meeting at a location that shall not be open to the public, if a board determines that it is necessary to conduct an on-site inspection of a location that is related to the board's business at which public attendance is not practicable, and the Director of the Office of Information Practices concurs; provided that at a regular meeting of the board prior to the limited meeting certain specified requirements are satisfied.

Uniform Probate Code; Omnibus. (HB2699, HD1, SD1; Act 39) Makes amendments to the Uniform Probate Code to:

• Exempt payable-on-death accounts established at a financial institution from being payable under Hawaii's anti-lapse statute and clarify that such accounts shall be payable under the nonprobate transfer provisions of the Uniform Probate Code;

• Require the personal representative to furnish copies of a supplemental inventory or appraisement to interested parties who request it or who requested a copy of the original inventory;

Page 94 Judiciary and Labor • Allow the court, for good cause shown, to waive requirement that the kokua kanawai in a guardianship proceeding interview the respondent in person to explain certain proceedings and provide other information;

• Permit the confidential written report of a kokua kanawai to be made available to any nominated guardian and nominated guardian's lawyers, among other statutorily-designated parties;

• Allow the court, for good cause shown, to waive or extend the 14-day time limit for a guardian's delivery to the ward of the order of appointment of the guardian and notice of the right to request termination or modification of the guardian; and

• Allow the court, for good cause shown, to waive or extend the 14-day time limit for a conservator's delivery to the protected person of an order of appointment of the conservator and a statement of the right to seek termination or modification of the conservator.

COURTS

Administrative Director and Deputy Administrative Director of the Courts; Salaries. (SB1526, SD2, HD3, CD1) Effective July 1, 2008, sets the salary of the Administrative Director of the Courts at an annual amount no less than $120,000 and no greater than $150,000, as determined by the Chief Justice. Effective July 1, 2008, sets the salary of the Deputy Administrative Director at an annual amount no less than $115,000 and no greater than $140,000, as determined by the Chief Justice.

Child Support Enforcement; Court Orders; Civil Contempt of Court. (SB1337, HD1, CD1) Provides for civil contempt of court in the family courts for cases involving juveniles or the Uniform Parentage Act. Provides that when a court of competent jurisdiction issues an order compelling a parent to furnish support, including child support, medical support, or other remedial care, for the parent's child, it shall constitute prima facie evidence of a civil contempt of court upon proof the order was made, filed, and served on the parent or proof that the parent was present in court at the time the order was pronounced, and the parent did not comply with the order.

Requires an order of civil contempt of court that is based on prima facie evidence to clearly state that the failure to comply with the order of civil contempt of court may subject the parent to a penalty that may include imprisonment or, if imprisonment is immediately ordered, the conditions that must be met for release from imprisonment. Allows a party to prove civil contempt of court by means other than prima facie evidence.

Claims Against the State; Appropriations. (SB2961, SD2, HD2, CD1; Act 67) Appropriates out of the 2007-2008 fiscal year, general revenues and State Highway Fund monies of the State of Hawaii for the purpose of satisfying claims for legislative relief as to specified persons, firms, corporations, and entities, for claims against the State, or its officers or employees, for the overpayment of taxes, or for refunds, reimbursements, payments of judgments or settlements, or payments for other liabilities.

Judiciary and Labor Page 95 District Court Jurisdiction. (SB2785, SD1, HD1, CD1; Act 69) Increases the monetary limit of district court jurisdiction in all civil actions from $20,000 to $25,000.

Electronic Monitoring; Temporary Restraining Orders Conviction. (SB2218, SD1, HD2, CD1) Provides that when a temporary restraining order is granted, if the court finds that the defendant has knowledge of the location of any protected party's residence, place of employment, or school, in addition to any other penalties statutorily allowed, the court may, as a condition of probation, prohibit contact with the protected party through the establishment of court-defined geographic exclusion zones, including the areas in and around the protected party's residence, place of employment, or school, and order that the defendant wear a global positioning satellite tracking device designed to transmit and record the defendant's location data. Based on the defendant's ability to pay, the court may also order the defendant to pay the monthly costs or portion thereof for monitoring by the global positioning satellite tracking system. Effective July 1, 2008 and sunsets July 1, 2010.

Family Court; Court-Appointed Counsel; Guardians Ad Litem. (HB2698, HD3, SD1) Clarifies the current fees for court-appointed counsel and guardians ad litem in family court to be:

(1) $90 an hour for in-court services provided by an attorney licensed to practice law in the State; and

(2) $60 an hour for:

(A) Out-of-court services provided by an attorney licensed to practice law in the State; and

(B) All services provided by a person who is not an attorney licensed to practice law in the State, whether performed in-court or out-of-court.

Does not preclude the Judiciary from contracting for court-appointed counsel and guardian ad litem services pursuant to chapter 103D and based on contract amounts guided by the rates set forth above.

Intermediate Appellate Court; Subpoenas; Oaths. (HB2697, HD1, SD1, CD1) Confers authority upon the intermediate appellate court to subpoena and compel the attendance of witnesses from any part of the State and to compel the production of books, papers, documents, or tangible things. Provides that any judge of the intermediate appellate court may administer oaths.

Judicial History Center; Board. (HB2696, HD2; Act 27) Requires a vacancy on the Board of the Judicial History Center to be filled for the remainder of the unexpired term or, if expired, for a new term by a person appointed by the Chief Justice. Requires a vacancy in any one of the three positions originally appointed by the Chief Justice from a list submitted by the Friends of the Judiciary History Center to be filled by the Chief Justice from a list of three candidates submitted by the Friends of the Judiciary History Center.

Judiciary Supplemental Appropriations Act of 2008. (HB2700, HD1, SD2, CD1; Act 102) Provides the Judiciary with supplemental appropriations and authorizations for its operations and capital improvements for fiscal year 2008-2009, including appropriations for guardians ad litem and court-appointed counsel services; psychiatric and psychological examination

Page 96 Judiciary and Labor fees; domestic violence service contracts; operations and expansion of the mental health court; a study to determine the feasibility of expanding the services at the Kapolei Judiciary Complex to include circuit court services; and various capital improvement projects for Judiciary facilities statewide.

CRIMES AND CRIMINAL PROCEDURE

Animal Hoarding. (SB3203, SD1, HD1, CD1) Creates the misdemeanor offense of animal hoarding that applies to a person who intentionally, knowingly, or recklessly:

• Possesses more than twenty dogs, cats, or a combination of dogs and cats;

• Fails to provide necessary sustenance for each dog or cat; and

• Fails to correct the conditions under which the dogs or cats are living, where conditions injurious to the dogs', cats', or owner's health and well-being result from the person's failure to provide necessary sustenance.

Confers authority upon a law enforcement officer, after obtaining a search warrant or in any manner authorized by law, to enter the premises if there is probable cause to believe that a pet animal is being treated in violation of the animal hoarding statute, to provide the pet animal with food, water, and emergency medical treatment or to impound the pet animal.

Allows any duly incorporated humane society or duly incorporated society for the prevention of cruelty to animals that is holding the pet animal to file a petition in the criminal action against the pet animal's owner for animal hoarding and to request that the court issue an order for forfeiture of the pet animal. Clarifies that the petitioner shall have the burden of proof in such an action.

Confers authority upon the court, at a hearing, to order immediate forfeiture of the pet animal if probable cause exists under the animal hoarding statute.

Prohibits destruction of the pet animal under the animal hoarding statute, prior to the final disposition of the criminal charge.

Allows the court to order surrender or forfeiture of the animal under the animal hoarding statute upon conviction, guilty plea, or plea of nolo contendere.

Effective upon approval. Sunsets July 1, 2011.

Arrest Powers; United States Marshal or Deputy United States Marshal. (SB2784, SD1, HD1, CD1; Act 95) Confers arrest powers without a warrant on the United States Marshal or Deputy United States Marshal under new specified conditions. Updates the name of the United States Customs Service and the Immigration and Naturalization Service to the "United States Customs and Border Protection Service" and the "Citizenship and Immigration Services", respectively.

Arson; Penalty. (SB2425, SD1, Act 17) Provides that a person convicted of arson involving fire set to brush, grass, or vegetation on land that results in damage to ten thousand square feet

Judiciary and Labor Page 97 or more of property, may be required, in addition to performing community service work, to pay any costs associated with extinguishing the fire, including the cost of:

(1) Personnel salary, benefits, and overtime;

(2) The operation, maintenance, and repair of apparatus, aircraft, and equipment;

(3) Supplies expended, damaged, or lost; and

(4) Rehabilitation supplies used during fire fighting operations.

Controlled Substances; Forfeiture. (HB1153, SD1, CD1) Subjects to criminal forfeiture:

• All conveyances, including aircraft, vehicles, or vessels that are used, or intended for use, to transport or in any manner facilitate the transportation of precursor chemicals for a purpose that would constitute a violation of the prohibition on unlawfully manufacturing a controlled substance; and

• All monies, negotiable instruments, securities, or other things of value furnished or intended to be furnished by any person in exchange for controlled substances that facilitate any violation of the prohibition on unlawfully manufacturing a controlled substance, as well as all monies, negotiable instruments, and securities used or intended to be used to facilitate a violation of the prohibition on unlawfully manufacturing a controlled substance.

Decriminalization of Minor Offenses. (SB2400, SD1, HD1, CD1; Act 101) Decriminalizes the penalty for violation of:

• Certain provisions of the Plant and Non-Domestic Animal Quarantine and Microorganism Import Law that governs the importation of certain articles by means of the airlines or other vessels, as freight, baggage, or otherwise;

• Statutes and rules adopted by the Department of Land and Natural Resources relating to traffic offenses committed in state parks and recreational areas or in ocean and recreational coastal areas, which shall be adjudicable as traffic infractions and fined $100 for the first violation, $200 for the second violation, and $500 for the third and subsequent violation. Adds issuance of summons and citations to violators to the authority of the Department of Labor and Natural Resources; and

• Statutes and rules adopted by the Department of Transportation for the parking of motor vehicles or equipment at the airport, including baggage carts, dollies, and other similar devices, which shall be adjudicated as traffic infractions.

Requires the departments or agencies that do not oppose decriminalization to indicate to the Legislative Reference Bureau (for purposes of the Bureau's continuous report to the Legislature on decriminalization) whether a case alleging violation of a statute or rule, if decriminalized, would thereafter be initiated by issuance of a citation, service of a complaint, or other type of process and what department or agency would initiate the case. Requires the departments or agencies to also indicate whether cases alleging violation of a statute or rule, if decriminalized, would be adjudicated through administrative proceedings

Page 98 Judiciary and Labor conducted by the executive department with jurisdiction or by judicial proceedings, with the State represented by the Attorney General, the prosecuting attorney, or other legal counsel. If the responses of the departments or agencies indicate that initiation and disposition of the cases would require participation by the Judiciary, the Attorney General, the county prosecuting attorneys, or the county police departments, the Bureau shall contact these agencies and request their input as to whether decriminalization will affect the agency's jurisdiction over the case or otherwise affect the agency's ability to participate in the prosecution of those cases.

Hawaii Anti-Trafficking Task Force. (HB2772, HD3, SD1, CD1) Adds members to the Hawaii Anti-Trafficking Task Force, including the State Public Defender, Hawaii contractees for services under the Office of Refugee Resettlement of the United States Department of Health and Human Services, Hawaii contractees for services under the United States Conference of Catholic Bishops, the Immigration Information Office of the County of Hawaii, the Crime Victim Compensation Commission, the Office of the Gender Equity Counselor of the University of Hawaii, and the Hawaii State Coalition Against Domestic Violence. Makes the reimbursement of members of the task force subject to the availability of funds. Requires the task force to report on its activities to the Legislature not less than twenty days prior to the convening of the Regular Session of 2009 and requires a final report not less than twenty days prior to the convening of the Regular Session of 2010, that includes findings and recommendations, and any proposed legislation. Extends the sunset date of the task force from June 30, 2008 to June 30, 2010.

Human Trafficking; Offense; Penalties. (SB2212, SD1, HD2, CD1) Makes it an offense of kidnapping for a person to intentionally or knowingly restrain another person with the intent to unlawfully obtain the labor or services of that person, regardless of whether related to the collection of a debt. Adds the obtaining or exertion of control over the labor of another by threatening by word or conduct as one of the elements of the offense of extortion. Also adds the destruction, concealment, removal, confiscation, or possession of any actual or purported passport, or any other actual or purported government identification document, or other immigration document, of another person, as one of the elements of the offense of extortion.

Clarifies the offense of prostitution in the first degree to include advancing prostitution by compelling a person by force, threat, or intimidation to engage in prostitution, or to profit from such coercive conduct by another. Further clarifies the offense of prostitution in the first degree by including the advancement or profit from prostitution of a person less than eighteen years old. Clarifies the offense of prostitution in the second degree to delete the advancement or profit from prostitution of a person less than eighteen years old and changing references to "prostitutes" to "prostituted persons."

Defines "services" as a relationship between a person and the actor in which the person performs activities under the supervision of or for the benefit of the actor, and clarifies that prostitution-related and obscenity–related activities are forms of "services".

Indecent Electronic Display to a Child; Electronic Enticement of a Child; Sex Offender Registration; Adam Walsh Act Compliance Working Group. (HB3040, HD1, SD1, CD1; Act 80) Creates the misdemeanor offense of indecent electronic display to a child for any person who intentionally masturbates or intentionally exposes the genitals in a lewd or lascivious manner live over a computer online service, internet service, or local bulletin board service

Judiciary and Labor Page 99 and who knows or should know or has reason to believe that the transmission is viewed on a computer or other electronic device by:

(1) A minor known by the person to be under the age of eighteen years;

(2) Another person, in reckless disregard of the risk that the other person is under the age of eighteen years, and the other person is under the age of eighteen years; or

(3) Another person who represents that person to be under the age of eighteen years.

Makes a conviction for the offense of failure to comply with covered offender registration requirements subject a mandatory minimum period of imprisonment without the possibility of parole for varying periods based upon specified number of prior convictions.

Imposes a mandatory term of imprisonment as provided by law for persons convicted of the offense of electronic enticement of a child in the first degree.

Defines "clean record" for purposes of the sex offender registration law to mean no conviction for a felony or covered offense, or if placed on probation or parole, completion of probation or parole without more than one revocation, and, for sex offenders, successful completion of an appropriate sex offender treatment program, if such program was ordered.

Amends definition of "crimes against minors", "registration information", and "sexual offense". Repeals definition of "aggravated sex offender", "aggravated sexual offense", and "sexually violent predator".

Requires a person, to register and be subject to community and public notification, if the person establishes or maintains a residence in this State and has not been designated as a covered offender by a court of this State but who has been designated as a covered offender, sex offender, offender against minors, repeat covered offender, sexually violent predator, or any other sexual offender designation in another state or jurisdiction and was, as a result of such designation, subjected to registration or community or public notification, or both, or would be if the person was a resident of that state or jurisdiction, without regard to whether the person otherwise meets the criteria for registration as a covered offender, and requires that person to be subject to the penalties for failure to comply with registration requirements unless the person successfully petitions the Attorney General for termination of registration requirements by fulfilling certain specified conditions.

Amends the provision on registration information to include certain specified additional information to identify and locate the offender.

Requires each covered offender to report in person every five years until June 30, 2009, and beginning on July 1, 2009, every year, within the thirty-day period following the offender's date of birth, to the chief of police where the covered offender resides, or to such other department or agency that may be designated by the Attorney General in rules adopted pursuant to chapter 91, Hawaii Revised Statutes, and shall review the existing information in the registry that is within the offender's knowledge, correct any information that has changed or is inaccurate, provide any new information that may be required, and allow the police

Page 100 Judiciary and Labor and such other department or agency designated by the Attorney General to take a current photograph of the offender.

Amends the definition of "public information" for purpose of access to registration information.

Prohibits the identity of any victim of a sexual offense from disclosure and requires any documentation containing such information to be redacted to prevent disclosure.

Allows the Attorney General to provide public information in the registry about the offender to any organization, company, or individual who requests such notification pursuant to procedures established by the Attorney General through rules.

Repeals the provision allowing continuation for various periods of public access to public information on the offender, except for existing law that specifies that if 40 years has elapsed after release or sentencing, a covered offender may petition the court to terminate public access. Clarifies that the court may order the termination upon substantial evidence and more than proof by a preponderance of the evidence that certain specified conditions exist.

Establishes three tiers of offenses for purposes of termination of registration requirements.

Requires a repeat covered offender to register for life and prohibits the repeat covered offender from petitioning the court, in a civil proceeding, for termination of registration requirements.

Provides procedures in a civil proceeding for a covered offender, after 40 years has elapsed from the date of the release or sentencing, to petition the court for termination of registration requirements.

Repeals statute on presumptions in civil proceeding. Repeals statute on determination of whether a sex offender is a sexually violent predator.

Establishes the Adam Walsh Act Compliance Working Group, composed of the following:

(1) The Attorney General;

(2) The Director of Public Safety;

(3) The Director of the Office of Youth Services;

(4) The State Public Defender;

(5) The Administrative Director of the Courts;

(6) The Chief of Police of the City and County of Honolulu;

(7) A member of the Hawaii Prosecuting Attorneys Association;

Judiciary and Labor Page 101 (8) A representative of a victim advocacy program who is not employed with an agency or entity otherwise represented on the working group and who shall be selected by the Attorney General;

(9) A representative of the American Civil Liberties Union; and

(10) A representative of the Hawaii Criminal Defense Attorneys Association.

Requires the working group to: (1) determine which Hawaii laws, including the sex offender registration laws, for amendment or repeal to comply with the Adam Walsh Act and the Department of Justice guidelines implementing it; (2) identify what resources are necessary for the State to implement any new or amended laws; (3) identify all sources of funding; (4) consider whether the additional costs outweigh the Edward Byrne Memorial Justice Assistance Grant funds; (5) review the provisions of the sex offender registry; and (6) draft proposed legislation. Requires the working group to report to the Legislature prior to the convening of the 2009 Session. Sunsets the working group after June 30, 2009.

Takes effect upon approval, except that the sex offender registration provisions take effect on January 1, 2009.

Penal Code; Multiple Terms of Imprisonment; Concurrent. (HB3383, SD1, CD1) Clarifies that if multiple terms of imprisonment are imposed on a defendant, whether at the same time or different times, the terms run concurrently unless the court orders or a statute mandates the terms to run consecutively.

Prostitution; Habitual Solicitation of Prostitution. (HB3002, HD1, SD1, CD1) Creates the offense of habitual solicitation of prostitution if the person is a habitual prostitution offender and pays, agrees to pay, or offers to pay a fee to another person to engage in sexual conduct. Provides that a person has the status of a "habitual prostitution offender" if the person, at the time of the conduct for which the person is charged, had two or more convictions within ten years of the instant offense for prostitution, street solicitation of prostitution, habitual solicitation of prostitution, an offense of any other jurisdiction that is comparable to one of the foregoing offenses, or any combination of these offenses. Provides that habitual solicitation of prostitution is a misdemeanor.

Public Order; Urinating or Defecating in Public. (HB1978, HD1, SD1; Act 77) Extends from December 31, 2009 to December 31, 2012, the sunset of Act 84, SLH 2004, which establishes the offense of urinating or defecating in public. A person commits the offense if the person intentionally or knowingly urinates or defecates in a public place or any area where such an act is likely to be observed by any member of the public within the boundaries of the area. Creates an exception for persons with verified medical conditions.

ELECTIONS

Campaign Contributions; Reciprocal Beneficiaries. (HB2656; Act 11) Clarifies definition of "immediate family" to include reciprocal beneficiaries for the purpose of the campaign financing laws, thus enabling them to participate and contribute to the election process as would a candidate's immediate family. Under current law, reciprocal beneficiaries means

Page 102 Judiciary and Labor two adults who are parties to a valid reciprocal beneficiary relationship and meet the requisites for a valid reciprocal beneficiary relationship as provided by statute.

Campaign Spending; Public Funding; Hawaii County Council Elections. (HB661 HD1, SD3, CD1) Enacts the Pilot Comprehensive Public Funding for Elections to the Hawaii County Council, to provide:

(1) That on September 1 of each odd-numbered year before the general election years of 2010, 2012, and 2014, the Campaign Spending Commission shall determine whether there is a minimum of $3,500,000 in the Hawaii Election Campaign Fund to certify participating candidates during the next election and provide funding for comprehensive public funding for elections;

(2) Qualifications for candidates to receive comprehensive public funding;

(3) Limitations on the use of contributions of seed money to expenditures, not to exceed $3,000, necessary to determine whether sufficient support exists for a participating candidate to run for office as a comprehensive publicly funded candidate;

(4) Requirements for a qualifying contribution, defined as a $5 monetary contribution made in the form of a check or a money order payable to the Hawaii Election Campaign Fund, made by a registered voter residing in the county district to which the candidate seeks nomination or election at the time the contribution is given, and collected subsequent to the candidate filing a declaration of intent to seek comprehensive public funding;

(5) Procedural requirements for certification of a candidate to receive comprehensive public funding, including an application for certification that contains at least 200 printed names, addresses, and signatures and qualifying contributions for the County of Hawaii from registered voters in the district for which the candidate seeks office, no later than 30 days prior to the primary election, and signed by the participating candidate and the participating candidate's campaign treasurer under penalty of perjury;

(6) Restrictions on contributions and expenditures by a certified candidate;

(7) Reporting requirements for certified candidates;

(8) For the use of surplus funds;

(9) That, except for seed money contributions and qualifying contributions, a certified candidate who is elected to the office sought shall not accept private contributions from any person until either September 1 of the next odd-numbered year following the general election in which the candidate was last elected, or the date when the Campaign Spending Commission determines there are insufficient funds, whichever occurs earlier;

(10) That the Campaign Spending Commission shall not distribute comprehensive public funding to certified candidates that exceeds the total amount of $300,000 for all

Judiciary and Labor Page 103 candidates receiving public funding in any given election year under the pilot program;

(11) For the distribution of equalizing funds to a certified candidate in a contested election whenever that candidate is outspent by an opposing nonparticipating candidate;

(12) Reporting requirements for nonparticipating candidates, in addition to the usual reporting requirements;

(13) That public funds shall be used only for the purpose of defraying expenses directly related to the certified candidate's campaign during the election campaign period for which the comprehensive public funds are allocated;

(14) That a candidate receiving public funds under the pilot program, or the candidate's campaign treasurer, shall not transfer any portion of the funds provided under this part to any other candidate for another campaign;

(15) That all public funds and seed money received by a certified candidate shall be deposited directly into a depository institution, and accessed through use of debit cards and bank checks;

(16) Requirements for deposit of money into the Hawaii Election Campaign Fund;

(17) Violations and penalties for any candidate who knowingly seeks or receives public funding to fraudulently qualify for or receive public funding;

(18) That the pilot project shall be used for the elections of 2010, 2012, and 2014 for the County of Hawaii County Council elections only; and

(19) That no candidate who is certified for comprehensive public funding in any of the elections of 2010, 2012, and 2014 shall become eligible for partial public funding in the election for which the candidate qualifies for comprehensive public funding.

Requires true and accurate reports to be filed with the Campaign Spending Commission on or before the due date specified by current law, and providing monetary penalties for the failure to file the required reports. Clarifies the definition of "loan" to exclude certain expenditures made on behalf of a committee by a candidate, volunteer, or employee under certain conditions. Deletes the requirement that a correction or explanation for a failure to file a report be submitted in writing to the Campaign Spending Commission. Requires penalties to be deposited into the general fund of the State rather than into the Hawaii Election Campaign Fund. Clarifies that the Campaign Spending Commission is not authorized to issue rules through advisory opinions. Makes clarifying amendments to electronic filing requirements. Clarifies expenditures that do not constitute a "loan" for purposes of campaign contributions. Requires payment of any administrative fine to be made to the general fund of the State rather than into the Hawaii Election Campaign Fund.

Election of President by Popular Vote. (SB2898, SD1; Vetoed 4/22/08; Overridden 5/1/08; Act 62) Enacts the Agreement Among the States to Elect the President by National Popular Vote to provide for the right of the people in member states enacting the Agreement to vote for the President and Vice President by statewide popular election. Requires the chief

Page 104 Judiciary and Labor election official of each member state to treat as conclusive an official statement containing the number of popular votes in a state for each presidential slate made by the day established by federal law for making a state's final determination conclusive as to the counting of electoral votes by Congress.

Elections; Absentee Voting; Permanent Ballot. (SB156, SD2, HD2, CD1) Allows a registered voter, when a registered voter requests an absentee ballot, to include an additional request to receive absentee ballots permanently. Requires the clerk, after receiving a request for permanent absentee voter status, to mail to the voter who requested permanent absentee voter status an absentee ballot for all subsequent elections conducted in that precinct. Requires the Chief Election Officer to inform voters of the option of applying for permanent absentee voter status and to provide any necessary form to request the permanent absentee ballot option to any registered voter requesting an absentee ballot. Makes a permanent absentee voter responsible for informing the clerk of any changes to personal information, including changes to the voter's forwarding address. Requires a voter's permanent absentee voter status to be terminated upon specified circumstances, in which case the voter must again request a permanent absentee ballot status. Makes an appropriation of $35,000 for FY 2008-2009, to qualify for federal matching funds of $575,000, which is also appropriated for implementing and administering the Permanent Absentee Voter Program under the federal Help America Vote Act of 2002.

Governor; Age Qualification for Election; Constitutional Amendment. (SB966) Proposes a constitutional amendment to lower the age qualification for election to Governor and Lieutenant Governor from thirty-five to twenty-five years.

OTHER ISSUES

Deputy Attorney General; Pro Bono. (HB2391, HD1; Vetoed 4/14/08) Would have clarified that a Deputy Attorney General may provide pro bono legal services if the pro bono services do not create a conflict of interest with the duties of the Deputy's office.

Governor's Emergency Powers; Disaster Relief. (SB2828, SD2, HD2; Vetoed 5/1/08) Clarifies the use of the Governor's emergency powers in response to a natural or manmade disaster. Limits the Governor's powers to provide disaster relief or the length of time that the Governor may provide disaster relief in specific circumstances without legislative authorization. States that, in certain cases, emergency powers in force prior to the effective date of this measure shall expire at the end of the 2008 Regular Session unless reauthorized by the Legislature.

Social Security Number; Bureau of Conveyances; Land Court (SB3092, SD1, HD1, CD1; Act 86) Allows use of the last four digits only of a social security number as one of the ways to fulfill the endorsement requirement for a state or federal judgment filed in the Land Court or the Bureau of Conveyances. Does not apply to judgments, orders, or decrees existing and filed or recorded in the Bureau or Land Court as of July 1, 2008.

Statutory Revision. (SB2399; Act 16) Amends or repeals various provisions of the Hawaii Revised Statutes and the Session Laws of Hawaii for the purpose of correcting errors and references, clarifying language, and deleting obsolete or unnecessary provisions.

Judiciary and Labor Page 105 Wireless Enhanced 911 Board; Proxy Voting; Composition. (SB2258, SD1; Act 22) Repeals the authorization for members of the Wireless Enhanced 911 Board to vote by proxy. Repeals requirement that three of the six members constituting a quorum shall be representatives of the wireless providers and three shall be representatives of public safety answering points.

II. Labor

EMPLOYMENT SECURITY

Unemployment Trust Fund; Reed Act Funds; Hawaii and Maui Appropriations; Workforce Development Plans. (SB2876, HD2, CD1) Appropriates from the Unemployment Trust Fund the sum of $2,000,000 for fiscal year 2008-2009 to be allocated to the Hawaii County Workforce Investment Board. Requires the Hawaii Board to collaborate with the County of Hawaii on expenditure of the moneys for specified purposes, and to submit a workforce development plan prior to the release of funds by the Department of Labor and Industrial Relations.

Appropriates from the Unemployment Trust Fund the sum of $1,508,487 for fiscal year 2008-2009 to be allocated to the Maui County Workforce Investment Board. Requires the Maui Board to collaborate with the County of Maui, particularly with regards to the unemployment stemming from the Molokai Ranch closing.

Appropriates from the Unemployment Trust Fund the sum of $2,000,000 for fiscal year 2008-2009 to be allocated to the Workforce Development Division of the Department of Labor and Industrial Relations to assist workers dislocated by company closures and lay-offs, assist employers in finding suitable workers, and improve the delivery of services as allowed under the Wagner-Peyser Act.

Clarifies that funding under the Act shall lapse on June 30, 2010.

PUBLIC EMPLOYMENT

Deferred Compensation Plans; Investment Products. (HB1365, SD2, CD1; Act 92) Clarifies that any type of investment product that is commonly offered in the securities industry or other deferred compensation plans, and is determined by the Board of Trustees of the State Deferred Compensation Plan to be a reasonably prudent investment product, may be selected and offered in the Plan, in addition to the products currently offered, such as annuities, life insurance, savings accounts, and mutual funds. Requires participating employees, including part-time, temporary, and seasonal or casual employees, to invest their deferred compensation in the investment products permitted under the Plan.

Employees' Retirement System; Furnishing of Information by State and Counties; Refunds of Overpayment of Retirement Benefits. (SB3004, SD2, HD2; Act 41) Allows the Employees' Retirement System, in fulfilling its statutory responsibilities, to require any department or agency of the State or counties to furnish information to the System. Allows the System to specify the format in which the information shall be furnished, including in electronic format. Specifies the requirements for furnishing information on payroll and personnel transactions.

Page 106 Judiciary and Labor

Requires any member, former employee, retirant, or beneficiary to whom accumulated contributions or a hypothetical account balance is payable after June 30, 2008, to designate a financial institution account into which the System shall be authorized to deposit the payment; provided that the payment is greater than $250 and the member, former employee, retirant, or beneficiary does not elect to rollover the payment into an eligible retirement plan.

Clarifies the definition of "beneficiary" and "service" for purposes of determining membership and calculating retirement benefits.

Specifies the retirement plans, accounts, and annuities from which the Employees' Retirement System may accept an eligible rollover distribution or a direct transfer of funds for the purchase of noncontributory (class C) service credit to convert it to hybrid (class H) service credit.

Clarifies the benefits payable to all employees who first become members on or after January 1, 1990. Clarifies computation of compensation earned or earnable.

Clarifies that the surviving spouse or reciprocal beneficiary and children under the age of eighteen of a member at the time of the member's death shall be eligible for a death benefit if the member suffers an ordinary death after accumulating ten years of credited service and the member dies while in service or while on authorized leave without pay.

Clarifies the election to become a class H member, and when a class A, B, or C member is required to become a class H member.

Requires a class A member who returns to service after June 30, 2008, with vested benefit status and who does not return to service as a class B member to return to service as a class A member. Requires a class B member who returns to service after June 30, 2008, with vested benefit status and who does not return to service as a class B member to return to service as a class A member.

Employees' Retirement System; Membership of Elective Officer. (SB3005, SD2, HD2; Act 47) Requires an elective officer to be a member of the Employees' Retirement System, unless the elective officer exercises a one-time election to be excluded from membership, within 30 days of taking office. Clarifies that the retirement allowance of a retirant who returns to service as an elective officer shall not be suspended if certain specified conditions are fulfilled by the retirant, including, for example, the condition that the elective officer be retired for at least 12 consecutive months prior to returning to service. Excludes from the foregoing 12-month requirement, any retirant who returns to service as an elective officer prior to January 3, 2009, provided that the retirant did not retire as an elective officer.

Provides that an elective officer who retired under current law that allows a member of the Legislature to retire upon attaining the age of at least 65 while continuing the fill the elective position, shall not be eligible for membership in the Employees' Retirement System while serving as an elective officer.

Clarifies the membership of part-time employees or persons engaged in temporary employment of three months or less.

Judiciary and Labor Page 107

Requires any trustee of the Office of Hawaiian Affairs elected or appointed after July 1, 2002, to become a member or elect to be excluded from membership in the Employees' Retirement System in the same manner as elective officers.

Repeals the provision requiring any member of the Legislature who reenrolls as an active member and who desires to obtain membership service for a period of service as a member of the Legislature during which the member received a retirement allowance to refund the retirement allowance received during the period of legislative service while reenrolled as an active member.

Repeals the provision allowing the membership of an elective officer or judge in the Employee's Retirement System to be terminated upon election of the member to retire whenever the allowance for the member reaches 75 per cent of the member's average final compensation.

Repeals the provision relating to previous membership credit for judges.

Provides that elective officers in office on October 1, 2008, who are not retirants of the Employees' Retirement System, shall be deemed to have exercised the one-time election.

Requires elective officers who are retirants of the Employees' Retirement System of the State of Hawaii to make an election, not later than October 1, 2008, whether or not to have their retirement allowance continue. Provides that if the elective officer makes no election, the elective officer's retirement allowance shall continue, however, the elective officer shall not be eligible for membership in the Employees' Retirement System while in office. Takes effect on October 1, 2008.

Re-Employment of Retirees. (HB2710, HD2, SD2) Allows county and state appointing authorities to employ retired state or county government employees who are receiving retirement benefits under the Employees' Retirement System, to fill labor shortage and difficult-to-fill exempt or civil service positions. Allows retired state or county government employees to be eligible for a position of at least one-half of a full-time equivalent with a state or county government after one calendar year of retirement. Requires retired state or county government employees rehired for civil service positions to be recruited, selected, and employed pursuant to applicable civil service and employment laws. Allows the retired state or county government employee to continue to receive the retirant's retirement benefits and health benefits without penalty. Requires a retired state or county government employee who is hired by the State or county to join the appropriate bargaining unit if hired in a position covered by collective bargaining. Disallows retired state or county government employees who are hired by the State or any of the counties from earning retirement service credit, contributing to the retirement system, or gaining additional retirement system benefits as a result of their subsequent employment with the State or a county; provided that the retired state or county government employee shall not be precluded from returning to work and relinquishing the person's retired status to earn additional service credits and gain additional retirement benefits for a future retirement date as may be allowed by law. Requires the Director of Human Resources of the appropriate state jurisdiction or the human resources management chief executive of each county to submit an annual report to the Legislature on the employment of retirants, including the number and positions of retired employees hired under this section, no later than twenty days prior to the convening of each

Page 108 Judiciary and Labor regular legislative session. Requires, with respect to the rehiring of teachers and administrators that the Department of Education contribute the required percentage of the retired employee's compensation to the Pension Accumulation Fund to amortize the Employees' Retirement Systems' unfunded actuarial accrued liability. Effective on July 1, 2008 and sunsets on June 30, 2013.

Voluntary Employees' Beneficiary Association Trusts; Sunset Extension; Audits. (SB2262, SD1, HD2, CD2) Extends the sunset date of Act 245, SLH 2005, relating to the Voluntary Employees' Beneficiary Association Trust Pilot Program to July 1, 2010. Requires the Board of Trustees of the Hawaii Employer-Union Health Benefits Trust Fund to conduct a certified independent financial audit of the Hawaii Employer-Union Health Benefits Trust Fund to cover the Hawaii State Teachers Association, retirees, employees, and employee-beneficiaries who have remained with the Hawaii Employer-Union Health Benefits Trust Fund whether in a bargaining unit or excluded from one, including the State and counties as the employer. Requires the independent auditor to consult with the state Auditor.

Requires the state Auditor, based upon the independent financial audit, to make findings and recommendations concerning:

(1) The benefit cost for each benefit plan, including medical, drug, dental, and vision coverage; and

(2) Administrative cost for the Hawaii Employer-Union Health Benefits Trust Fund for the plan years July 1, 2006 to June 30, 2007, July 1, 2007 to June 30, 2008, and July 1, 2008 to June 30, 2009.

Requires the state Auditor, based upon the independent financial audit, to make separate findings and recommendations for the Hawaii State Teachers Association Voluntary Employees' Beneficiary Association Trust for the plan years July 1, 2006 to June 30, 2007, July 1, 2007 to June 30, 2008, and July 1, 2008 to June 30, 2009, in the same manner. Requires the state Auditor to report findings and recommendations to the 2010 Legislature.

PUBLIC WORKS

Governor's Emergency Powers; Suspension of Wages and Hours on Public Work Projects During Emergency. (SB2779, HD2; Vetoed 5/1/08; Overridden 5/1/08; Act 61) Allows the Governor, subject to certain statutory provisions relating to disaster relief and civil defense emergencies, by executive order in writing, to suspend the law on wages and hours on public works projects, if a national or state emergency occurs and is so proclaimed, respectively, by the President or Congress, or by the Governor.

WORKERS' COMPENSATION

Workers' Compensation; IME Working Group. (HB2387 HD1, SD2) Establishes a working group on funding for workers' compensation independent medical examinations, to be placed under the Department of Labor and Industrial Relations for administrative purposes. Requires the working group to study and determine the alternative methods or combination of methods of paying impartial physicians to conduct medical examinations, with a view

Judiciary and Labor Page 109 toward providing equity and fairness in funding the examinations, so that the employer, employer's insurer, special compensation fund, and state general fund are not disproportionately burdened or otherwise disadvantaged in paying for the examinations. Requires the working group to be composed of one representative from each of the following entities, to be selected by that entity:

(1) Department of Labor and Industrial Relations;

(2) Department of Human Resources Development;

(3) Hawaii Government Employees Association;

(4) United Public Workers Local 646;

(5) ILWU Local 142;

(6) The Chamber of Commerce of Hawaii;

(7) American Insurance Association;

(8) Hawaii Insurers Council;

(9) American Physical Therapy Association;

(10) Hawaii State Chiropractic Association;

(11) Hawaii Medical Association;

(12) Hawaii State Bar Association; and

(13) Hawaiian Electric Company, Incorporated.

Requires report of findings and recommendations, including suggested legislation, to the Legislature prior to the convening of the Regular Session of 2009. Sunsets the working group on May 15, 2009.

Workers' Compensation; Independent Medical Examinations. (HB2929, HD1, SD1) Allows the employer, after an injury and after a claim is filed by the injured employee and upon mutual agreement of the parties, to appoint a qualified physician, paid by the employer, to conduct an independent medical examination of the injured employee, or a permanent impairment rating examination of the injured employee, and make a report to the employer. Allows the employer, if the parties cannot agree on a physician to perform the independent medical examination, or permanent impairment rating examination, to request in writing that the Director of Labor and Industrial Relations appoint from the Director's list of qualified physicians licensed to practice in Hawaii, a physician who is licensed in a relevant medical specialty and willing to undertake the examination within seven calendar days of the Director's receipt of the request. Requires any physician mutually selected by the employer and employee or selected by the Director to examine the employee within thirty days of selection. Requires the Director to keep and maintain a list of qualified physicians including their respective qualifications. Prohibits an independent medical examination and a

Page 110 Judiciary and Labor permanent impairment rating examination from being combined into a single medical examination unless the injured employee consents in writing prior to the scheduling of the examinations. Prohibits the Director, appellate board, or court from ordering more than one employer-requested independent medical examination and one permanent impairment rating per case, unless valid reasons exist with regard to the medical progress of the employee's treatment. Provides that if an employee unreasonably refuses to submit to, or in any way unreasonably obstructs an examination, the employee's right to claim compensation for the work injury shall be suspended until the unreasonable refusal or obstruction ceases and no compensation shall be payable for the period during which the refusal or obstruction continues. Requires the cost of conducting the ordered independent medical examination to be limited to the complex consultation charges governed by the medical fee schedule. Requires every physician selected to perform independent medical examinations or permanent impairment rating examinations to be currently licensed in Hawaii; provided that for claimants whose residency is not Hawaii, the physicians performing the independent medical examination or permanent impairment rating shall be licensed in the state where the claimant has resided during the five years immediately preceding the examination. Allows the employer, when an injured employee has attained medical stability as determined by the injured employee's attending physician, to appoint a physician, paid by the employer and selected by agreement of the parties, who shall conduct a permanent impairment rating examination of the injured employee. Defines "medical stability" to mean that the injured employee's medical condition is well stabilized so that no further improvement in the injured employee's work injury can be expected from further medical treatment and continued medical care will only prevent deterioration of the condition. Repeals section 386-79, HRS, relating to medical examination by employer's physician. Effective July 1, 2008 and sunsets on July 1, 2011.

Workers' Compensation; Medical Treatment. (HB2388, HD1, SD2, CD1) For workers' compensation purposes, when there is a dispute between an employee and the employer or the employer's insurer regarding the employee's proposed treatment plan or the continuation of medical services, requires the employee to continue to receive essential medical services prescribed by the treating physician necessary to prevent deterioration or further injury until the Director of Labor and Industrial Relations issues a decision on whether the treatment plan or medical services should be continued. Requires the Director to make a decision within thirty days of the filing of a dispute. Requires the Director, if the Director determines that medical services pursuant to the treatment plan should be or should have been discontinued, to designate the date after which medical services for that treatment plan are denied. Allows the employer or the employer's insurer to recover from the employee's qualified personal health care provider or from any other appropriate occupational or non-occupational insurer, all the sums paid for medical services rendered after the date designated by the Director. Prohibits the employee from being charged for the disallowed services, unless the services were obtained fraudulently. Allows the attending physician, employee, employer, or insurance carrier to request in writing that the Director review the denial of the treatment plan or the continuation of medical services. Does not apply to disputes resolved prior to July 1, 2008.

Workers' Compensation; Temporary Total Disability. (HB2386, SD2, CD1) Requires the payment of temporary total disability (TTD) benefits to be terminated only upon order of the Director of Labor and Industrial Relations or if the employee's treating physician determines that the employee is able to resume work and the employer has made a bona fide offer of suitable work within the employee's medical restrictions; requires the order to be issued only

Judiciary and Labor Page 111 after the Director has reviewed the case file and position papers submitted by the employee and the employer. Sets a 14-day deadline for the employee and employer to submit position papers to the Director on a request to review a benefit termination decision, and requires the Director to review the case file and position papers and issue a decision, without a hearing, within 30 days, on whether TTD benefits should have been discontinued and, if so, the date on which the discontinuation should have occurred. Allows the employer to request that a credit be issued for benefits paid by an employer after the discontinuation date. Allows the assessment of attorney's fees and costs to the employer for enforcement on behalf of the employee for payment of permanent total disability and TTD benefits. Where a work injury causes temporary total disability and payment of compensation does not begin within 30 days of the date of injury, entitles the injured employee to receive a weekly benefit equal to 70 percent of the injured employee's average weekly wages, subject to the limitations on weekly benefit rates, or if the employee's average weekly wages are less than the maximum weekly benefit rate, at the rate of one hundred percent of the employee's average weekly wages. Requires the Director to convene a working group to study the foregoing TTD issues, consisting of the Director and other members selected by the Director from representatives of employer and employee organizations, including labor unions. The number of working group members shall be determined by the Director, who shall serve as the working group's chairperson. Requires the working group to report to the Legislature prior to the convening of the Regular Session of 2009. Effective upon approval, unless the working group reports to the Legislature that it has not reached a consensus in resolving the concerns raised, in which case July 1, 2009 shall be the effective date.

OTHER ISSUES

Retired Patient Employees at Hansen's Disease Facilities; Pension Adjustment. (SB3228, HD1; Act 49) Beginning July 1, 2007 to June 30, 2008, adjusts the pension amounts for retired patient employees and patient laborers at every Hansen disease treatment and care facility by specified percentages based on pension amounts currently received. Also provides a percentage increase in pension amounts for retired patient employees for the period from July 1, 2008 to June 30, 2009. Authorizes payment of the pension adjustment to the estate of a pensioner who dies after July 1, 2007, but before payment of the adjustment. Effective upon approval and retroactive to July 1, 2007.

Streamlining Union Certification. (HB2974, HD2; Vetoed 4/14/08) Would have required the Hawaii Labor Relations Board to certify, in lieu of directing an election, an individual or labor organization as the bargaining representative of a group of employees who are in a unit appropriate for collective bargaining, if the Board finds that a majority of the employees have signed valid authorizations designating the individual or labor organization as their bargaining representative and no other individual or labor organization is currently certified or recognized as the exclusive representative of the employees in the unit. Provides procedures to facilitate initial collective bargaining for a labor organization that is newly organized or certified as a representative.

Page 112 Judiciary and Labor Resolutions Adopted

I. Judiciary

Constitutional Convention; LRB Cost Study. (HCR231, HD1) Requests the Legislative Reference Bureau to study the costs of convening a Constitutional Convention and provide an estimate of the projected total cost, as well as to consider other specified logistical issues involved in convening the Convention. Report to the Legislature by September 1, 2008.

II. Labor

Conversion of Exempt Employees to Civil Service. (SCR222) Requests the heads of the Departments of Budget and Finance; Business, Economic Development, and Tourism; Commerce and Consumer Affairs; Hawaiian Home Lands; Health; Human Services; Labor and Industrial Relations; Land and Natural Resources; and Public Safety, respectively, to submit reports to the Legislature no later than twenty days prior to the convening of the 2009 Regular Session on the number of exempt positions that have been converted to civil service in their respective departments. Requests these departments to convert all exempt clerical and paraprofessional positions to civil service by December 31, 2008.

Hawaii Labor History Week. (HCR230, HD1) Recognizes the week of September 1 - September 7 as "Hawaii Labor History Week" in conjunction with the annual Labor Day holiday and activities. Encourages Hawaii's workforce to develop ways to celebrate and honor the work of labor groups and the progress they have brought about for the working people. Encourages teachers across the State to provide labor education learning experiences for students appropriate to their grade level and consistent with state educational history and social science content standards.

Language Access Month; Centralized Language Access Resource Center Feasibility Study. (SCR67, SD1; SR40, SD1) Designates September 2008 as Language Access Month to raise awareness of the language access laws and the provision of equal access to state and state-funded government services. Requests the Office of Language Access under the Department of Labor and Industrial Relations to conduct a feasibility study on establishing a statewide centralized language access resource center and submit a report to the Legislature prior to the 2009 Regular Session.

Judiciary and Labor Page 113

Page 114 Judiciary and Labor PUBLIC SAFETY

The Committee on Public Safety has jurisdiction over programs relating to public safety, corrections, the narcotics division, and the sheriffs division.

Highlights

INCARCERATED PERSONS

Legislators in the 2008 Regular Session focused a great deal on incarcerated persons and plans or programs to reintegrate incarcerated persons into the community. SB2546, SD2, HD1, CD1, was enacted to require the Department of Public Safety, in conjunction with various state agencies and private entities, to develop a comprehensive reentry plan into the community for persons exiting correctional facilities. This measure also examines the impact of a parent's incarceration on the parent's relationship with his or her children. In addition, upon the receipt of adequate funding, this measure requires the Department of Public Safety to develop model programs that reduce rates of recidivism and authorizes the Department to purchase service contracts for various activities that facilitate the transition of incarcerated persons back into the community. This measure also aims to provide Hawaii inmates with less than one year to serve in an out-of-state prison a smoother transition back into the communities of Hawaii by permitting the Department of Public Safety, if there is insufficient correctional facility space in Hawaii, the authority and obligation to transfer Hawaii inmates serving long-term sentences to an out-of-state prison in exchange for Hawaii inmates with less than one year remaining to serve in an out-of-state prison.

Legislators addressed the reintegration concerns for female prisoners who are residents of Hawaii and are incarcerated in a mainland prison. SB2082, SD2, HD1, CD1, requires the Department of Public Safety to create a strategic plan to provide adequate facilities and services for the female prisoners incarcerated in a mainland prison who will be returning to Hawaii. The measure also appropriates $100,000 to develop a strategic plan by January 1, 2009, that ensures successful reentry of the returning female prisoners into the community.

Legislators in the 2008 Regular Session also took steps to require mainland correctional facilities that hold Hawaii inmates to disclose certain information regarding their prison or facility. SB2341, SD1, HD1, CD1, requires privately-owned prisons or other out-of-state detention facilities that hold Hawaii inmates pursuant to a contract with the State of Hawaii to provide access to information and personal records relating to the Hawaii inmates and certain operations of the prison or facility.

Other measures relating to incarcerated persons that were enacted by legislators during the 2008 Regular Session include SB2083, SD2, HD1, CD1, which permits the Judiciary to assess a fee not to exceed $200 on a parolee's or probationer's application for a transfer out of Hawaii. The measure increases the membership of the State Council for Interstate Adult Offender Supervision and requires the Judiciary to appoint a full-time coordinator to supervise adult offenders. SCR125, SD1; SR64, SD1, addresses the need to develop an early parole eligibility program for Hawaii inmates incarcerated in Hawaii and on the mainland. The measure requests the Department of Public Safety to research and study early parole

Public Safety Page 115 eligibility programs established in other states in order to recommend to legislators the appropriate criteria to use for Hawaii.

DANGEROUS PRODUCTS AND SUBSTANCES

During the 2008 Regular Session, legislators aimed to enact measures that would further protect the safety of the residents and visitors of Hawaii. HB2436, HD2, SD2 (Act 38), amended the definition of "display fireworks" to include fireworks designated as UN0334 and restricted the lawful use of fireworks without a permit in certain locations and in a certain manner. This measure also aims to further protect minors from injuries related to using fireworks by prohibiting minors from selling fireworks or articles pyrotechnic and also requires all persons to have a permit in order to purchase and use fireworks for a purpose or at a time that is generally prohibited.

Legislators also enacted measures to protect the public from controlled substances. SB1491, SD1, HD2 (Act 119), authorizes the Department of Public Safety to expend monies to investigate violations of the Uniform Controlled Substances Act and to fund the Narcotics Enforcement Division's Forensic Drug Laboratory facility. The measure also amends the list of controlled substances listed in Schedule II and Schedule V of the Uniform Controlled Substances Act.

Bills Passed

I. Public Safety

Display Fireworks; Permits; Fees; Prohibitions; Minors. (HB2436, HD2, SD2; Act 38) Amends the definition of "display fireworks" to include fireworks contained in the regulations of the United States Department of Transportation and designated as UN0334. Amends the unlawful use of fireworks without a permit to add the use of fireworks in certain locations and in a certain manner without a permit. Requires a fee to be paid for a permit to purchase and use consumer fireworks for a purpose that is generally prohibited or during a period of time other than when the use of consumer fireworks is permissible. Amends the prohibition on minors controlling fireworks or articles pyrotechnic without parent, guardian, or adult supervision to include the prohibition on minors selling fireworks or articles pyrotechnic.

Uniform Controlled Substances Act; Controlled Substance Registration Revolving Fund; Depressants; Stimulants; Immediate Precursors; Sales Restriction. (SB1491, SD1, HD2; Act 119) Authorizes the Director of Public Safety to expend monies in the Controlled Substance Registration Revolving Fund on the costs associated with investigating violations of the Uniform Controlled Substances Act and for funding the Narcotics Enforcement Division's Forensic Drug Laboratory facility. Repeals any quantity of the depressants 1 phenycyclohexylamine and 1 piperidinocyclohexanecarbonitrile as a controlled substance listed in Schedule II. Includes any quantity of the stimulants Phenmetrazine and its salts and Methylphenidate as a controlled substance listed in Schedule II under stimulants. Includes any quantity of the immediate precursors to amphetamine, methamphetamine, or phencyclidine as a controlled substance listed in Schedule II. Repeals any quantity of the stimulant pyrovalerone as a controlled substance listed in Schedule V. Includes any quantity

Page 116 Public Safety of the depressant pregabalin as a controlled substance listed in Schedule V. Repeals the exemption from the sales restriction on controlled substances afforded for any quantity of pseudoephedrine sold in a liquid form or gel capsule when pseudoephedrine is not the only active ingredient.

II. Corrections

Application Fee for Interstate Transfer; Interstate Adult Offender Supervision Council Membership; Compact Administrator Term; Appointment of Coordinator Position. (SB2083, SD2, HD1, CD1) Permits the Judiciary to assess a fee not to exceed $200 on a parolee's or probationer's application for a transfer out of Hawaii. Increases the membership of the State Council for Interstate Adult Offender Supervision to nine members by adding as members, the Prosecuting Attorney of the City and County of Honolulu, the Attorney General, and the State Public Defender, or their designees. Excludes the Compact Administrator from the limitation of a four-year term, but still subjects the Compact Administrator to confirmation proceedings. Requires the Judiciary to appoint a full-time coordinator position for the supervision of adult offenders.

Comprehensive Offender Reentry System Plan; Model Programs; Familial Relationship Research; Offender Training; Out-of-State Prison Transfers; Ex-Offender Reentry Services. (SB2546, SD2, HD1, CD1) Requires the Department of Public Safety to work with the appropriate state agencies and private entities in developing a comprehensive reentry plan for persons exiting correctional facilities. Upon receipt of adequate funding, requires the Department of Public Safety, along with other state agencies, to develop model programs that reduce rates of recidivism and promote successful reentry into the community. Requires the Department of Public Safety to promote and organize research relating to the immediate impact of a parent's incarceration on the well-being of his or her children, as well as the long-term impact of the parent's incarceration on the parent's relationship with his or her children. Requires the Department of Public Safety and Hawaii Paroling Authority to work with the Director of Labor and Industrial Relations to ensure offenders and ex-offenders use the resources and services that are provided to them to improve their life skills and employment opportunities. Requires the Department of Public Safety, if there is insufficient correctional facility space in Hawaii to transfer Hawaii inmates with less than one year remaining to serve from an out-of-state prison to a correctional facility in Hawaii, to transfer inmates with long-term sentences from Hawaii to an out-of-state prison in exchange for Hawaii inmates in out-of-state prisons who have less than one year remaining to serve. Upon receipt of adequate funding, requires the Department of Public Safety, with the assistance of various state agencies and private entities, to authorize the purchase of service contracts for various activities that facilitate the transition of ex-offenders' back into the community, including but not limited to contracts for supervision services, finding permanent housing for the ex-offenders, health services, and employment services.

Contracts with Out-of-State Detention Facilities; Freedom of Information; Disclosure of Personal Records. (SB2341, SD1, HD1, CD1) Requires contracts made between the State of Hawaii and a nongovernmental entity or through an interstate compact for the incarceration or detention of prisoners in a privately-owned prison or other out-of-state detention facility to:

Public Safety Page 117 (1) Provide the same level of access to information and personal records that is required of the Department of Public Safety; and

(2) Include the same remedies for failure to provide access to such information or personal records as is provided against government agencies. Defines "privately-owned prison or other out-of-state detention facility" to mean any privately-owned prison or other out-of-state detention facility that incarcerates or detains prisoners or detainees pursuant to a contract with the State of Hawaii.

Correctional Industries Program; Temporary Exempt Positions. (HB1402, HD2, SD2; Act 65) Increases the maximum number of temporary exempt positions within the Correctional Industries Program from forty-five positions to sixty-five positions.

Correctional Program Revolving Fund. (HB2009, SD1; Act 64) Repeals the establishment of the Correctional Program Revolving Fund, which was created for the purpose of offsetting the cost of inmate programs by collecting fees from the committed or detained persons that participated in the inmate programs. The Revolving Fund was created in 1996 due to inactivity.

Paroling Authority Membership; Initial Appointments; Panel Recommendation. (SB45, SD1; Act 10) For appointment as a member of the Hawaii Paroling Authority, requires that a nominee be recommended by a nomination panel only for the nominee's initial nomination to the Authority.

Return of Female Prisoners; Mainland Prisons; Strategic Plan; Establishment; Appropriation. (SB2082, SD2, HD1, CD1) Requires the Department of Public Safety to create a strategic plan by January 1, 2009, to provide adequate facilities and services for female prisoners incarcerated in a mainland prison who are residents of Hawaii and who will be returning to Hawaii. Appropriates $100,000 for the Department of Public Safety to develop the strategic plan to ensure successful reentry into the community by the returning female prisoners.

III. Sheriffs Division

Civil Service Positions; Deputy Sheriff; Academy Graduate Requirement. (SB2334, SD2, HD1, CD1) Repeals the exemption from civil service classification for the positions of First Deputy Sheriff and Second Deputy Sheriff. Requires any Sheriff and Deputy Director for Law Enforcement that begins employment on or after July 1, 2008, to be a graduate of a law enforcement academy.

Resolutions Adopted

Deputy Sheriffs; Compensation. (SCR102, SD1; SR57, SD1) Requests the Departments of Public Safety and Human Resources Development to negotiate higher salaries and increased benefits for deputy sheriffs with the Hawaii Government Employees Association so that their total compensation package is competitive with that of county police officers. Requires the negotiations to be completed within a sufficient period of time so that the increased costs are included in the supplemental budget.

Page 118 Public Safety

Early Parole Eligibility Programs; Study; Report. (SCR125, SD1; SR64, SD1) Requests the Department of Public Safety to research and study early parole eligibility programs established in other states in order to recommend to the Legislature the appropriate criteria to be used for an early parole eligibility program for Hawaii inmates incarcerated in Hawaii and on the mainland. Requests the Department of Public Safety to report its findings, conclusions, and recommendations to the Legislature no later than 20 days prior to the convening of the 2009 Regular Session.

Sheriff Division; Headquarters Site. (SR56) Requests the Department of Public Safety to identify two possible locations for the Sheriff Division to have a headquarters site. Requests the Department of Public Safety to report its recommendation of the two possible locations to the Legislature no later than twenty days prior to the convening of the 2009 Regular Session so that the Department's recommendation can be considered by the Legislature during the 2009 Regular Session.

Public Safety Page 119

Page 120 Public Safety TOURISM AND GOVERNMENT OPERATIONS

The Committee on Tourism and Government Operations has jurisdiction over programs relating to tourism, including the Hawaii Convention Center, Hawaii Visitors and Convention Bureau, and the Hawaii Tourism Authority; state facilities not specifically identified herein; and state government operations policy, including procurement and government efficiency.

Highlights

PROCUREMENT

The Hawaii Public Procurement Code is intended, among other things, to ensure the fair and equitable treatment of all persons who deal with the procurement system of the State and counties. Because public employment is a public trust, public employees must discharge their duties impartially to assure fair competitive access to governmental procurement by responsible contractors. The policy of the State is to foster broad-based competition. Full and open competition is encouraged. It is the intent of the Legislature to maintain the integrity of the competitive bidding and contracting process, and to promote economy, efficiency, and effectiveness in the procurement of goods and services and the construction of public works for the State and counties.

SB2824, SD2, HD1, CD1, makes the county employee member of the State Procurement Policy Board an ex-officio nonvoting member. This measure also requires the Board to annually audit a minimum of two executive departments, divisions, or agencies to ensure compliance with the Hawaii Public Procurement Code, based upon pattern of noncompliance or circumstances of a particular procurement that may indicate an intention to circumvent the Code, and requires follow-up audits accordingly. Random compliance audits and reports to the Legislature on the results of audits are also required. The measure also directs the Auditor to conduct a compliance, performance, and management audit of the Hawaii Public Procurement Code and the administrative rules adopted pursuant thereto, to be limited to the State Procurement Office and the purchasing agencies of the State, not including the Legislature, Judiciary, Office of Hawaiian Affairs, and the several counties. The parameters of audit are specified by the measure and the Auditor is allowed to contract with a private entity to conduct the audit. An interim report to Legislature is required for the 2009 Regular Session, and final report is required for the 2010 Regular Session.

SB2825, SD1, HD2, CD1, requires the Administrator of the State Procurement Office to determine corrective actions regarding public procurements. Furthermore, if a procurement officer under the jurisdiction of the Administrator or a chief procurement officer of any of the other state entities fails to comply with any determination rendered by the Administrator within thirty days from the date of the issuance of the determination, or longer if permitted by the Administrator upon request by the procurement officer or a chief procurement officer, the procurement officer or chief procurement officer shall be subject to an administrative fine under current law, for every day of noncompliance.

SB2826, SD2, HD1, CD1, requires the State Procurement Office, in cooperation with the Department of Human Resources Development, to develop and maintain a procurement practices training and development program for state and county procurement officers and

Tourism and Government Operations Page 121 to provide initial mandatory training to all of these procurement officers to ensure that an agency's procurement practices are in compliance with the Hawaii Public Procurement Code and that proper decisions are made thereto. Initial attendance is required of state procurement officers within 60 days of being appointed or named to the position. Follow-up sessions are included for those state officers determined by the State Procurement Office to be in need of training based upon the history of compliance of the governmental body to which the procurement officer is attached, or as otherwise selected for attendance for any reason by the State Procurement Office. Attendance is encouraged by other state procurement officers at follow-up sessions and by county procurement officers at all sessions.

SB2827, SD1, HD1, CD1, requires written notification to persons of their non-selection and ranking for contract awards of $5,000 or more for the procurement of professional services. Protests regarding an award or solicitation may be submitted in writing within seven working days after the aggrieved person knows or should have known of the facts giving rise thereto, or no later than seven days after the posting of the award. The purchasing agency is required to notify in writing all offerors that solicited an award of their non-selection not later than the day of the posting of the award. The measure specifies the information to be included in the public posting about the award.

SB2867, SD2, HD2, CD1, specifies that any false information or misrepresentation knowingly placed in the solicitation of an offeror or a subcontractor by an agency shall be a basis for nullification of the solicitation by the Administrator of the State Procurement Office. Any false information or misrepresentation knowingly placed in the bid of the bidder or subcontractor shall be the basis for not awarding the bid to that bidder or the bidder's subcontractor. A three-tier system is established for protesting the non-award first, to the procurement agency; secondly, thereafter to the Procurement Office Administrator; and thirdly, thereafter to the Department of Commerce and Consumer Affairs. The Procurement Office Administrator may impose a one-year mandatory suspension of the bidder or subcontractor from consideration for awards.

SB3087, SD1 HD1, CD1, requires the Director of Labor and Industrial Relations to suspend for a three-year period, a contractor who falsifies records, or delays or interferes with a departmental investigation conducted to determine compliance with the wage and hour law.

TOURISM

Visitors to Hawaii often learn about an area from a guidebook or the Internet, which directs visitors, who are often inexperienced swimmers, to remote beaches, cliffs, and dive spots that may not have lifeguards. These visitors may be unaware of ocean hazards and the basic principles of water safety. It was reported in The Honolulu Advertiser on January 30, 2007, that a key feature of a water safety warning program to protect visitors is information, and for years, lifeguards have been fighting a difficult battle to educate people about ocean hazards, with many of them launching their own initiatives to warn visitors through their individual efforts and often at their own expense. Dissemination of information to tourists of ocean hazards and water safety is vital. Hotels, airlines, the cruise industry, and the Hawaii Superferry are among the entities that should serve as points of information dissemination.

Page 122 Tourism and Government Operations SR91, SD1, requests the Hawaii Tourism Authority, in cooperation and conjunction with the Department of Health, University of Hawaii School of Ocean and Earth Science and Technology, City and County of Honolulu Emergency Services Department, and appropriate water safety organizations to furnish, as part of a multi-lingual information and education program, information on water safety and recreational hazards to visitors to Hawaii. The Resolution requests that the information be disseminated by the best means available to inform incoming visitors to Hawaii, whether by brochure or on-board video or other means such as by website, with the point of dissemination to include incoming airline flights, hotel rooms, and the Hawaii Superferry. The State Department of Transportation is requested to work with the airlines on the dissemination of the information on all incoming flights to Hawaii and the Hawaii Superferry and the cruise industry are requested to provide the information to their passengers. Additionally, the Hawaii Tourism Authority is requested to disseminate the Resolution to every hotel in the State and every cruise ship company operating in Hawaii.

Bills Passed

DEPARTMENTS, BOARDS, AND COMMISSIONS

Attorneys; Department of Taxation; Administrative Rules Officer or Rules Specialist. (HB3386, HD1, SD2, CD1) Requires the Department of Taxation to designate as special tax counsel, any licensed attorney employed by the Department as an administrative rules officer or administrative rules specialist. Authorizes the administrative rules officer or specialist and special tax counsel to provide certain legal advice and representation, and requires public disclosure of such legal advice and communications in accordance with standards provided by federal law and federal court interpretation for public disclosure of Internal Revenue Service Office of Chief Counsel advice and communications. Requires the Department to keep daily records of the time spent by each licensed-attorney administrative rules officer, administrative rules specialist, and special tax counsel on specified categories of work and requires the Department to report such information to the Legislature no later than ten days prior to the convening of each regular session.

Boards and Commissions; Direct Communication with Legislature. (SB868, SD2; Vetoed 4/22/08; Overridden 5/1/08; Act 60) Allows the legislature or a legislative committee, upon its request, to communicate directly with a board or commission that is placed within a department for administrative purposes, notwithstanding statutory provisions that require the head of the department to represent the board or commission in communications with the Governor and the Legislature.

Employment of Attorneys by State Departments; Judiciary and Legislature Exemption; Procedures. (SB3200, SD1, HD1; Act 45) Establishes procedures regarding the retention of an attorney to represent a court or judicial or legislative office of the State when the Attorney General declares a conflict of interest, as follows: if the Attorney General is requested to provide representation to a court or judicial office by the Chief Justice or the Chief Justice's designee, or to a legislative office by the Speaker of the House of Representatives and the President of the Senate jointly, and the Attorney General declines to provide such representation on the grounds of conflict of interest, the Attorney General shall retain an attorney for the court or judicial or legislative office, subject to approval by the court or judicial or legislative office.

Tourism and Government Operations Page 123

PROCUREMENT

Procurement; Corrective Actions; Administrative Fine. (SB2825, SD1, HD2, CD1) Requires the Administrator of the State Procurement Office to determine corrective actions regarding public procurements. Provides that if a procurement officer under the jurisdiction of the Administrator or a chief procurement officer of any of the other state entities fails to comply with any determination rendered by the Administrator within thirty days from the date of the issuance of the determination, or longer if permitted by the Administrator upon request by the procurement officer or a chief procurement officer, the procurement officer or chief procurement officer shall be subject to an administrative fine under current law, for every day of noncompliance.

Procurement; False Information in Bids or Solicitations; Sanctions. (SB2867, SD2, HD2, CD1) Specifies that any false information or misrepresentation knowingly placed in the solicitation of an offeror or a subcontractor by an agency shall be a basis for nullification of the solicitation by the Administrator of the State Procurement Office. Specifies that any false information or misrepresentation knowingly placed in the bid of the bidder or subcontractor shall be the basis for not awarding the bid to that bidder or the bidder's subcontractor, and establishes a three-tier system for protesting the non-award first, to the procurement agency; secondly, thereafter to the Chief Procurement Officer; and thirdly, thereafter to the Department of Commerce and Consumer Affairs. Also authorizes the imposition by the Chief Procurement Officer of a one-year mandatory suspension of the bidder or subcontractor from consideration for awards.

Procurement; Mandatory Procurement Training. (SB2826, SD2, HD1, CD1) Requires the State Procurement Office, in cooperation with the Department of Human Resources Development, to develop and maintain a procurement practices training and development program for state and county procurement officers and to provide initial mandatory training to all of these procurement officers to ensure that an agency's procurement practices are in compliance with the Hawaii Public Procurement Code and that proper decisions are made thereto. Requires initial attendance by state procurement officers within 60 days of being appointed or named to the position. Includes follow-up sessions for those state officers determined by the State Procurement Office to be in need of training based upon the history of compliance of the governmental body to which the procurement officer is attached, or as otherwise selected for attendance for any reason by the State Procurement Office. Encourages attendance of other state procurement officers at follow-up sessions and county procurement officers at all sessions.

Procurement; Notice of Non-Selection and Ranking; Protest. (SB2827, SD1, HD1, CD1) Requires written notification to persons of their non-selection and ranking for contract awards of $5,000 or more for the procurement of professional services. Requires protests regarding an award or solicitation to be submitted in writing within seven working days after the aggrieved person knows or should have known of the facts giving rise thereto, or no later than seven days after the posting of the award. Requires the purchasing agency to notify in writing all offerors that solicited an award of their non-selection not later than the day of the posting of the award, and specifies the information to be included in the public posting about the award.

Page 124 Tourism and Government Operations Procurement; State Procurement Policy Board; Annual Audits. (SB2824, SD2, HD1, CD1) Makes the county employee member of the State Procurement Policy Board an ex-officio nonvoting member. Requires the Board to annually audit a minimum of two executive departments, divisions, or agencies to ensure compliance with the Hawaii Public Procurement Code, based upon pattern of noncompliance or circumstances of a particular procurement that may indicate an intention to circumvent the code, and requires follow-up audits accordingly. Also requires random compliance audits and report to Legislature on results of audits. Requires the Auditor to conduct a compliance, performance, and management audit of the Hawaii Public Procurement Code and the administrative rules adopted pursuant thereto, to be limited to the State Procurement Office and the purchasing agencies of the State, not including the Legislature, judicial branch, Office of Hawaiian Affairs, and the several counties. Specifies parameters of audit and allows the Auditor to contract with a private entity to conduct the audit. Requires interim report to Legislature for 2009 Regular Session, and final report for 2010 Regular Session.

PUBLIC WORKS

Public Works Projects; Contractors; Falsification of Records; Suspension. (SB3087, SD1, HD1, CD1) Requires the Director of Labor and Industrial Relations to suspend for a three-year period a contractor who falsifies records, or delays or interferes with a Departmental investigation conducted to determine compliance with the wage and hour law.

Resolutions Adopted

Aloha Tower Development Corporation; Auditor Study. (HCR245, HD1, SD1) Requests the Auditor to conduct an audit of the Aloha Tower Development Corporation, particularly with regard to the lawsuits filed against the corporation relating to its development contracts, projects, and procurement practices, and the justification for its existence. Requests that the Auditor report to the Legislature prior to the 2009 Regular Session.

Hawaii Tourism Authority; Water Safety and Recreational Hazards; Visitor Information. (SR91, SD1) Requests the Hawaii Tourism Authority, in cooperation and conjunction with the Department of Health, University of Hawaii School of Ocean and Earth Science and Technology, City and County of Honolulu Emergency Services Department, and appropriate water safety organizations to furnish, as part of a multi-lingual information and education program, information on water safety and recreational hazards to visitors to Hawaii. Requests the information to be disseminated by the best means available to inform incoming visitors to Hawaii, whether by brochure or on-board video or other means such as by website, with the point of dissemination to include incoming airline flights, hotel rooms, and the Hawaii Superferry. Requests the State Department of Transportation to work with the airlines on the dissemination of the information on all incoming flights to Hawaii and requests the Hawaii Superferry and the cruise industry to provide the information to their passengers. Requests the Hawaii Tourism Authority to disseminate the Resolution to every hotel in the State and every cruise ship company operating in Hawaii.

Public Procurement; PEG Contracts. (HCR358, HD1) Requests the Department of Commerce and Consumer Affairs to establish a task force to solicit public input and examine methods

Tourism and Government Operations Page 125 other than the Hawaii Public Procurement Code process to oversee public, educational, and governmental access organizations' (PEG) expenditures and ensure proper checks and balances. Specifies that the task force should also examine the selection process for PEG advisory board members. Specifies that the task force should comprise of 12 members:

• One representative each from the boards of Olelo Community Television; Akaku: Maui Community Television; Hoike: Kauai Community Television; and Na Leo O Hawaii;

• One representative from each county, appointed by the respective county's Mayor;

• The Director of Commerce and Consumer Affairs or the Director's designee;

• The Superintendent of Education or the Superintendent's designee;

• The President of the University of Hawaii or the President's designee; and

• The Chairperson of the Cable Access Committee or the Chairperson's designee.

Specifies that recommendations made by the task force should take into account the first amendment rights of PEG. Requires report by task force to the 2009 Legislature.

Page 126 Tourism and Government Operations TRANSPORTATION AND INTERNATIONAL AFFAIRS

The Committee on Transportation and International Affairs has jurisdiction over programs relating to air, water, and surface transportation; and international affairs, international relations, foreign policy issues, and foreign relations.

Highlights

Development and maintenance of efficient transportation was a major focus for the 2008 Legislature. Escalating fuel costs, the demise of two major passenger airlines, and the temporary disruption of interisland cargo shipping, brought home the critical interdependence of Hawaii's water, air, and land transportation systems. More efficient transportation does not come cheap, particularly infrastructure upgrades.

Hawaii's aging commercial harbor system has not kept pace with the State's economic growth, and ports statewide are experiencing competition for berthing rights for cargo, fuel, and tourism related activities, and severe congestion in harbor facilities. The Hawaii Harbors Users Group, a maritime transportation industry group, was formed in 2005 to help the State identify and prioritize Hawaii's harbor improvement needs. SB3227, SD2, HD1, CD1, takes the recommendations of the Users Group and expands the authority of the Aloha Tower Development Corporation to assist the Department of Transportation (DOT) in the development of the statewide harbors modernization plan for seven harbors. The bill also authorizes the DOT to issue revenue bonds to finance the harbor improvements and authorizes $20,000,000 from these harbor revenue bond funds for development of infrastructure, demolition, and expansion of facilities at Hana Harbor, Maui. HB2500, HD1, SD1, CD1, the budget bill, provides an additional $124,375,000 in revenue bond funds for harbors modernization projects statewide.

HB2500, HD1, SD1, CD1, also appropriates $130,236,000 for airport modernization projects throughout the State. SB2365, SD1, HD1, CD1, focuses on the enhancement, renovation, operation, and maintenance of existing rental motor vehicle customer facilities and the development of new facilities and related services at state airports – for the benefit of visitors and residents alike. The bill authorizes the DOT to establish and collect a rental motor vehicle customer facility charge of $1 a day, and appropriates $10,000,000 in fiscal year 2008-2009 from the fees collected. The bill also extends the $3 a day rate of the rental motor vehicle surcharge tax until August 31, 2011, for the benefit of state highway projects.

The federal Airline Deregulation Act of 1978 prohibits states from regulating the routes, rates, or services of airlines operating in interstate commerce. Under this Act, Hawaii is prohibited from regulating its interisland carriers. However, the State of Alaska received an exemption for some portions of its interstate air transportation, and it may be prudent for the State of Hawaii to initiate discussions with Hawaii's congressional delegation regarding an exemption for Hawaii. HB2250, HD1, initiates that discussion by establishing a statutory scheme for the regulation of Hawaii interisland air carriers, if federal legislation is enacted to permit implementation.

HB2500, HD1, SD1, CD1 provides $183,066,000 to state highways for fiscal year 2008-2009. In addition, HB3197, SD1 (Act 42), appropriates $21,253,032 out of the State Highway Fund for

Transportation and International Affairs Page 127 fiscal year 2007-2008. The 2007 Legislature extended the $3 per day rental vehicle surcharge tax and increased the fuel tax on gasoline and diesel oil, bringing in an additional $21,200,000 for fiscal year 2007-2008. While the Legislature increased the revenues, the authority to expend monies was not provided, and this bill authorizes the DOT to spend the monies to supplement current maintenance levels. HB2531, HD1, SD2, CD1, responds to a recurring problem in rural Maui, by appropriating $50,000 to the DOT and creating an informal, temporary West Maui Transportation Access Plan Working Group to develop a plan to address road closures in West Maui. The bill is seen as a model for developing plans in other areas having similar problems, such as West Kauai, Wainee, and the Kealakekua area.

Bills Passed

Transportation

AIRLINES

Hawaii Interisland Airlines Regulation. (HB2250, HD1) Establishes a statutory scheme for the regulation of Hawaii interisland air carriers, provided that federal legislation is enacted to permit implementation:

• Establishes in the Department of Transportation a five-member Air Carrier Commission with investigative powers to assist in the regulation of interisland air carriers;

• Requires the Commission to issue certificates authorizing air transportation and establishes requirements for the transfer, suspension, change, or revocations of certificates;

• Requires the Commission to establish rates, fares and other charges of air carriers, and requires air carriers to file for public inspections tariffs showing the same;

• Establishes requirements for issuance of securities and execution of leases;

• Authorizes the Commission to establish air carrier reporting requirements; and

• Establishes unlawful actions and penalties and procedures for hearings and review and appeals.

DRIVER'S LICENSING

Driver's License; U.S. Armed Forces; Expirations. (SB3240, SD1, HD2; Act 50) Provides that the driver's license of any active member of the U.S. Armed Forces, which expired while the member was on active duty outside of the country, shall remain valid for 90 days after the member's return to the United States. Adjusts the length of time a person's license will remain valid based on age, and authorizes a license for a shorter period if the licensee has a physical condition that may impair driving ability.

Page 128 Transportation and International Affairs DRIVING UNDER THE INFLUENCE

Conditional License Permits; Additional Conditions. (HB2847, SD1, CD1) Expands the conditions that must be met to obtain a conditional license permit to add when a respondent must drive: to school or vocational training; for personal medical or dental care; or to assist in the care of another person who is unable to drive due to age, disability, or medical condition. Allows a respondent who holds a commercial driver's license to obtain a category 3 conditional license permit under certain conditions.

Driving Under the Influence; Ignition Interlock Systems. (HB3377, SD2, CD1) Requires installation of an ignition interlock device on the vehicle of a person arrested for driving under the influence of an intoxicant (DUII) in order to prevent the person from starting or operating a motor vehicle with more than a minimal alcohol concentration while the person's case is pending and the person's license is revoked. Effective July 1, 2010.

• Establishes the Ignition Interlock Special Fund, administered by the Director of Transportation (Director), to fund costs of installing and operating ignition interlock systems in vehicles of indigent persons who are required to install the devices; provides that offender surcharges and vendor fees shall be deposited in the Fund;

• Requires the Director to establish and administer, through administrative rules, a statewide program of certification and monitoring of ignition interlock devices and the vendors who install and maintain them;

• Establishes requirements and restrictions for an ignition interlock permit that allows a respondent to drive for employment;

• Amends various penalties and conditions related to driver's licenses and operating a vehicle under the influence of an intoxicant;

• Allows the courts additional flexibility in sentencing first time DUII offenders to license suspension or license revocation and installation of an ignition interlock device, and exempts persons convicted of a first offense of highly intoxicated driving from the financial responsibility (SR22) requirement;

• Specifies that the ignition interlock device must be installed during the period in which the driver is released on bail, recognizance, or supervised release;

• Requires the cost of the installation and maintenance of an ignition interlock to be borne by the defendant, if not an indigent; and

• Allows the issuance of permits authorizing the use of vehicles without ignition interlock devices if the operation of a vehicle is required for employment, specifying the conditions which must be met prior to the issuance of these permits, and stipulating when permits shall not be issued.

Establishes the Hawaii Ignition Interlock Implementation Task Force (Task Force) to plan for implementation of ignition interlock provisions effective July 1, 2010, and prepare reports and recommendations for the Legislature, including any additional proposed legislation to

Transportation and International Affairs Page 129 implement the program; and appropriates $50,000 out of the Driver Education and Training Special Fund and into the State Highway Fund to support the work of the Task Force.

HARBORS

Harbors Modernization Projects; Hana Harbor Transfer. (SB3227, SD2, HD1, CD1) Authorizes 70-year public lands leases for maritime and maritime-related operations. Expands the authority of the Aloha Tower Development Corporation (ATDC) to assist in the development of the statewide harbors modernization plan for seven harbors statewide by establishing the six-member Harbors Modernization Group. Authorizes the Department of Transportation to issue revenue bonds to finance the harbor improvements and appropriates or authorizes $20,000,000 from the harbor revenue bond funds for development of infrastructure, demolition, and expansion of facilities at Hana Harbor, Maui. Repeals on June 30, 2016, the expanded authority of the ATDC and deposits any monies or funds under the management of the Harbors Modernization Group into the Harbor Special Fund.

Transfers to the Department of Transportation the jurisdiction and administrative authority over Hana Harbor, excluding its small boat ramp facility, which remains under the jurisdiction and administrative authority of the Department of Land and Natural Resources.

Harbors; Permit Portability. (HB2917, HD2, SD1; Act 79) Requires the Department of Transportation to allow, under certain conditions, and with no additional cost or use permit, a vessel with a use permit to moor in Kewalo Basin to moor in Honolulu Harbor. Requires the department with jurisdiction over Kewalo Basin to allow, on a space available basis and with no additional cost or use permit, a vessel with a use permit to moor in Honolulu Harbor to moor in Kewalo Basin. Requires the Director of Transportation to adopt implementation rules.

Intra-County Ferry Service; Fuel Tax Exemption. (SB2816, SD1, HD2) Requires the Department of Land and Natural Resources to assign priority mooring space to any intra-county ferry service regulated by the Public Utilities Commission that serves a county with a population of less than five hundred thousand residents that includes at least three islands inhabited by permanent residents. Exempts this ferry service from taxes on the sale of liquid fuel sold or used by the ferry service.

HIGHWAYS

Roads in Limbo; State and County Jurisdiction. (SB2900, SD1, HD1; Act 56) Authorizes the counties to enforce laws and rules and repair and maintain public streets, roads, or highways whose ownership is in dispute between the State and county, without the counties claiming their ownership. Ensures that the general public retains the right to use these disputed public streets, roads, or highways to access coastal and inland recreational areas, including beaches, shores, parks, and trails.

State Highway System; Emergency Appropriation. (HB3197, SD1; Act 42) Appropriates $21,253,032 out of the State Highway Fund for fiscal year 2007-2008 to be expended by the Department of Transportation for the state highway system.

Page 130 Transportation and International Affairs State Highways; County Subdivision Ordinances; Exemption. (HB2428; Act 12) Clarifies that public highways include real property highway related interests opened, laid out, subdivided, consolidated, and acquired and built by the government. Adds the authority to acquire new or additional real property to the duties of the Director of Transportation. Requires the county councils, by resolution, to grant the Director of Transportation exemptions from county subdivision requirements to expedite spending of public money.

West Maui Transportation Access Plan. (HB2531, HD1, SD2, CD1) Creates an informal, temporary West Maui Transportation Access Plan Working Group within the Department of Transportation to develop a West Maui transportation access plan to address road closures in West Maui. Appropriates $50,000 to the Department of Transportation, and allows hiring a consultant without regard to the Hawaii procurement code, to develop the plan.

PEDESTRIAN SAFETY

Pedestrian Safety. (HB357, HD2, SD1, CD1) Requires the Department of Transportation to work with the counties and nonprofit organizations to identify and implement immediate improvements to high-risk crosswalks and road crossings. Appropriates $1,000,000 to the Department of Transportation to conduct a pilot study to identify state and county intersections where the time to cross the intersection is insufficient for elderly pedestrians, and to develop additional design, funding, and installation plans to make crosswalks and road crossings safer for pedestrians.

VEHICLES

Motor Vehicles; Inter-island Ferry. (HB2953, SD1, CD1; Act 66) Exempts drivers of vehicles traveling on an inter-island ferry from certain documentation requirements when the drivers present identification of the driver, a current certificate of registration for the vehicle, and proof of motor vehicle insurance. Requires the inter-island ferry carrier to keep a record of the vehicle identification number and to retain the information for three years after the date of travel.

Rental Motor Vehicles; Customer Facility Charge; Surcharge Tax. (SB2365, SD1, HD1, CD1) Establishes the Rental Motor Vehicle Customer Facility Charge Special Fund for the enhancement, renovation, operation, and maintenance of existing rental motor vehicle customer facilities and development of new facilities and related services at state airports. Authorizes the Department of Transportation to establish and collect a rental motor vehicle customer facility charge for deposit in the Special Fund. Requires the Department of Transportation, by September 1, 2008, to levy, assess, and collect a rental motor vehicle customer facility charge of $1 per day, or any portion of a day that a rental motor vehicle is rented or leased, by a rental motor vehicle concession where customers pick up and return rental vehicles to a facility at a state airport. Requires monies to be collected only until $25,000,000 is collected and deposited into the Special Fund. Appropriates $10,000,000 out of the Special Fund in FY 2008-2009. Requires annual reports to the Legislature. Extends until August 31, 2011, the $3-a-day rate of the rental motor vehicle surcharge tax and requires the Department of Transportation to provide recommendations to the 2009 Legislature for additional revenue-generating initiatives to replenish the State Highway Fund.

Transportation and International Affairs Page 131 Three-Wheel Mopeds; Requirements and Exemptions. (HB931, HD1, SD1, CD1) Exempts three-wheeled mopeds designed to carry a driver and passenger seated side by side from seating and passenger restrictions on the operation of mopeds. Requires liability and property damage insurance on three-wheeled mopeds. Restricts three-wheeled mopeds to roadways with speed limits of 35 miles per hour or less. Exempts three-wheeled mopeds from provisions related to driving mopeds on bicycle lanes and paths.

Towing Fees; Services. (HB2954, SD1) Authorizes a towing company to charge an overtime fee of $15 when the tow occurs between the hours of six o'clock p.m. and six o'clock a.m., from Monday through Thursday and from six o'clock p.m. Friday to six o'clock a.m. Monday. Prohibits a towing company from charging the owner of a vehicle targeted for towing if the owner of the vehicle appears on the scene while the vehicle is in the process of being hooked up or is hooked up. Requires towing companies operating in a county with a population of 500,000 or more to offer consumer service 24 hours a day to be entitled to charge overtime fees.

OTHER ISSUES

Bikeways; Parking Prohibition. (HB3249, HD1, SD1, CD1) Prohibits parking of any vehicle on bicycle lanes or bicycle paths. Assesses a fine of up to $500 per violation.

Resolutions Adopted

I. Transportation

Traffic; Roundabouts. (SR60) Encourages the Department of Transportation and county transportation agencies to actively seek opportunities to construct more roundabouts instead of signalized, right-angle intersections.

II. Intergovernmental Affairs

Discrimination Against Women; Elimination. (HCR16) Urges the United States Senate to ratify the United Nations Convention on the Elimination of All Forms of Discrimination Against Women, and join the 185 ratifying nations in endorsing the most comprehensive treaty ensuring fundamental human rights and equality for all women.

Free Trade Agreement; Korea-United States. (SR25, SD1) Urges the United States Congress to support the Korea-United States Free Trade Agreement.

Free Trade Agreement; Taiwan. (SCR53, SD1, HD1; SR27, SD1) Urges the President of the United States to enter into a free trade agreement with Taiwan and requests the negotiations to be undertaken in a manner that respects the interests of all countries in the East Asian region.

Visa Waiver; Taiwan. (SCR52, HD2) Requests the United States Citizenship and Immigration Services and the United States Department of Homeland Security to add Taiwan to the list of

Page 132 Transportation and International Affairs visa waivers, with the Department of Business, Economic Development, and Tourism to assist in the effort. Requests the Southern Taiwan visa office to find ways to allow people to receive visas without having to travel to Northern Taiwan.

Visa Waiver; Taiwan; Visitors; Hawaii Exports. (SR26) Requests the Department of Business, Economic Development, and Tourism (DBEDT) and the Hawaii Tourism Authority (HTA) to implement programs to increase the number of visitors from Taiwan. Requests the United States Citizenship and Immigration Services and the United States Department of Homeland Security to add Taiwan to the list of visa waivers, with DBEDT and HTA to assist in the effort. Requests DBEDT to develop a list of Hawaii-made products appropriate for exportation to Taiwan.

Transportation and International Affairs Page 133

Page 134 Transportation and International Affairs WATER AND LAND

The Committee on Water and Land includes those programs relating to state planning, urban renewal, community development, and land and water use; coastal zone management, land reclamation, naturally occurring fisheries, and ocean resources; state parks and beaches, management areas including ocean recreation management areas; and small boat harbors.

Highlights

The Legislature has long recognized the preservation of undeveloped lands for the enjoyment of future generations as an important public purpose. During the 2008 Regular Session several measures were passed to promote the preservation of public lands for this purpose. SB2423, SD2, HD2, CD1, addressed the proposed expansion of the Turtle Bay Hotel and Resort development in Kahuku, on the island of Oahu. The Legislature determined that it is in the best interest of the public to acquire the lands owned by Kuilima Resort Company, Oaktree Capital Management, LLC, and their successors in interest. This measure directs the Governor or the Governor's designee to begin immediate negotiations with Kuilima Resort Company, Oaktree Capital Management, LLC, and their successors in interest, to acquire the properties owned by them between Kawela Bay and Kahuku Point, including the Turtle Bay Hotel and Resort, and the land mauka of Kamehameha Highway. In particular, this measure provides mechanisms for the Governor to effectuate the acquisition of the property which includes:

• Purchasing the property;

• Entering into a cooperative agreement with private or public entities to acquire the property; or

• Exercising the government's power of eminent domain to acquire the property.

The Legislature also passed HB2704, HD2, SD1, CD1, which establishes the Ha‘iku Valley Cultural Preserve for the preservation and practice of customary and traditional practices and resources. This measure also establishes the Ha‘iku Valley Culture Preserve Commission to exercise policy and management oversight over the Preserve and the Ha‘iku Valley Culture Preserve Trust Fund. Finally, this measure authorizes the Office of Planning and the Department of the Attorney General to initiate the acquisition of lands within the Preserve that are not State lands.

The Legislature also created the Land Conservation Incentives Tax Credit by passing SB2198, SD2, HD2, CD2, which provides an income tax credit for taxpayers who donate land in perpetuity to the State or a public or private conservation agency. The tax credit amount is up to 50 per cent of the value of the donated land.

Water and Land Page 135 RECREATIONAL-RESIDENTIAL USE LEASES IN STATE PARKS

The Legislature passed HB2872, SD2, CD2, which requires the Board of Land and Natural Resources to negotiate with existing lessees and permittees of recreation-residence use leases in state parks and forest preserves. This measure calls for a "one-time" renegotiation for a lease to be up to twenty years and based on market rates of the land and improvements. If the renegotiation is unsuccessful, the lease will expire on December 31, 2008, and the lease will be auctioned by the Board in accordance with procedures set forth in the measure.

This measure also establishes the Koke‘e State Park Advisory Council, which will assist in updating the Koke‘e State Park Master Plan and assist in the management of the Koke‘e recreational cabin leases.

FISHING REGULATIONS

The Legislature passed HB3174, HD1, SD1, CD1 (Act 112), which requires the Department of Land and Natural Resources to adopt administrative rules for fisheries in state and federal waters that are equivalent to and consistent with federal fishery regulations for those same waters. The Legislature also passed HB3175, HD1, SD1, CD1 (Act 113), that requires the Department of Land and Natural Resources to adopt rules necessary to effectuate federal requirements for fisheries within the shared jurisdiction of the state and federal governments.

VIOLATIONS ON PUBLIC LANDS

The Legislature passed a trio of measures dealing with penalties for violations committed on public lands. HB3177, HD1, SD2, CD1, increases the maximum penalty for violations of chapter 183C, Hawaii Revised Statutes, which deals with the protection and management of the natural resources of the State in the state land use conservation district. HB3178, SD2, CD1, increases the civil penalties that may be assessed for encroaching on public lands, engaging in prohibited uses on public lands, and conducting prohibited activities on public lands. SB1891, SD1, HD1, CD1, establishes criminal liability for a person who violates chapter 171, Hawaii Revised Statutes, relating to public lands.

Bills Passed

I. Water

FISHING

Commercial Marine Fishing Reports. (HB3175, HD1, SD1, CD1; Act 113) Requires the Department of Land and Natural Resources (Department) to adopt rules necessary to effectuate federal requirements for fisheries where there is shared jurisdiction between the state and federal governments. Provides that information submitted to the Department in compliance with this provision shall be kept confidential.

Page 136 Water and Land Fishing Regulations. (HB3174, HD1, SD1, CD1; Act 112) Requires that under certain specified conditions, the Department of Land and Natural Resources (Department) adopt administrative rules for fisheries in state and federal waters that are equivalent to and consistent with federal fishery regulations for the same waters.

Requires the Board of Land and Natural Resources to annually establish a fishing season, a total fishing quota, or individual fishing quotas, or adopt rules relating to bag, size, and gear limits that are consistent with federal fishing regulations and with similar state rules.

Requires that the Department amend or repeal rules for a fishery if the federal fishery agency declares a fishery to be sustainable and amends or repeals its regulations accordingly.

Excludes the Papahanaumokuakea Marine National Monument from the foregoing provisions.

OTHER ISSUES

Removal of Grounded Vessels. (HB3173, HD1, SD1, CD1; Act 96) Provides that the Department of Land and Natural Resources (Department) may assume control of any vessel that:

• Is grounded on a coral reef or in imminent danger of breaking up; and

• Cannot be removed by the owner within 72 hours in a manner that is determined by the Department to be reasonably safe.

Provides that once the Department assumes control over a vessel, that it may be removed by conventional salvage methods to minimize damage to the natural resources and not become a hazard to navigation.

II. Land

LAND ACQUISITION

Acquisition of Turtle Bay Property. (SB2423, SD2, HD2, CD1) Authorizes the Governor, or the Governor's designee, to negotiate to acquire the lands owned by Kuilima Resort Company, Oaktree Capital Management, LLC, and their successors in interest, between Kahana Bay and Kahuku Point on Oahu. The property to be acquired specifically includes the unimproved lands surrounding the Turtle Bay Hotel and Resort, including lands mauka of Kamehameha Highway.

Authorizes the Governor to effectuate the acquisition of the property through:

• Purchase of the property;

• Entering into a cooperative agreement with private or other public entities to acquire the property; or

Water and Land Page 137

• Exercise of the government's power of eminent domain.

LAND CONSERVATION

Ha‘iku Valley Cultural Preserve Commission. (HB2704, HD2, SD1, CD1) Establishes that the Ha‘iku Valley Cultural Preserve (Preserve) shall be used solely and exclusively for the following purposes:

• Preservation and practice of customary and traditional Hawaiian rights for cultural, spiritual and subsistence purposes;

• Preservation and protection of the area's cultural, archaeological, historical, and environmental resources;

• Rehabilitation, revegetation, habitat restoration, and preservation;

• Education; and

• Other purposes as determined by the Ha‘iku Valley Cultural Preserve Commission.

Establishes the Ha‘iku Valley Cultural Preserve Commission (Commission) to exercise policy and management oversight of the Preserve.

Establishes the Ha‘iku Valley Cultural Preserve Trust Fund (Trust Fund) within the state treasury to be administered by the Department of Land and Natural Resources with the prior approval of the Commission. Requires the Commission to submit an annual report on the status of the Trust Fund to the Legislature.

Authorizes the Office of Planning and the Department of the Attorney General, after consultation with the Commission, to initiate the acquisition of all lands within the Preserve that are not state lands.

Land Conservation Fund. (SB3102, SD2, HD1, CD1) Allows for the depositing of monies into the Land Conservation Fund (Fund) from public and private sources provided that mandates or conditions on the deposits do not conflict with the permitted use of the Fund.

Permits the Board of Land and Natural Resources to require as a condition of receiving funds that state, county, and nonprofit organizations provide a conservation easement, agricultural easement, or deed restriction for the long-term conservation of the land being acquired.

Permits monies from the Fund to be utilized for the operation, maintenance, and management of lands acquired by way of the Fund; provided that the cost of operation, maintenance, and management of lands by way of the Fund does not exceed five per cent of the preceding years annual Fund revenues.

Land Conservation Incentives Tax Credit. (SB2198, SD2, HD2, CD2) Creates the Land Conservation Incentives Tax Credit (tax credit) to encourage the preservation and protection

Page 138 Water and Land of land in the State. The tax credit shall be deductible from the taxpayer's net income tax liability for taxable years after December 31, 2007 for taxpayers who donate land in perpetuity or complete a bargain sale in perpetuity to the State or a public or private conservation agency or voluntarily invest in the management of land to protect or enhance a conservation or preservation purpose under a land protection agreement, conservation management agreement, or other legal instrument that is consistent with a conservation or preservation purpose.

The amount of the tax credit shall be fifty per cent of the fair market value of the land or interest in land donated in perpetuity or of the amount invested in the management of land to protect or enhance a conservation or preservation purpose. The tax credit is capped at an aggregate of $1,000,000 for all tax credits for all taxable years regardless of the value of the land or interest in the land.

LEASES

State Park Recreation-Residence Use Leases. (HB2872, SD2, CD2) Requires the Board of Land and Natural Resources (Board) to negotiate with all existing lessees or permittees of recreation-residence use leases in state parks or forest reserves in counties with a population of less than 100,000. Provides that the renegotiated lease shall be:

• For a period of not less than twenty years;

• Based on market rates for land and buildings; and

• A "one time only" negotiation with no assurance that there will be a renegotiation at the expiration of the renegotiated lease term.

Provides that an existing lessee or permittee may submit a counteroffer based upon a certified appraisal and requires that the Board negotiate in good faith based upon its valuation and the lessee's or permittee's appraisals.

Requires that the Board provide each lessee or permittee with proposed new lease terms within three months of the effective date of the Act, i.e., by October 1, 2008, and negotiate the final terms of each lease within four months of the effective date of the Act, i.e., by November 1, 2008.

Provides that the lessee or permittee shall have thirty days from final notification of the new lease terms to accept and sign the new lease. If the new lease is not accepted, the lease or permit shall expire on December 31, 2008, and the recreation-residence use lease shall be auctioned by the Board.

Provides that any recreation-residence use lease for a cabin that is vacant and owned by the State be auctioned by the Board. In such event, bona-fide full time residents of a county with a population of less than 100,000 shall be given the first opportunity to obtain the lease through auction.

Establishes the Koke‘e State Park Advisory Council whose responsibilities shall include:

Water and Land Page 139 • Reviewing and assisting in the updating of the Koke‘e State Park Master Plan; • Advising and assisting in the management of the Koke‘e recreational cabin leases;

• Enhancing community education and cultural awareness of Koke‘e State Park;

• Protecting and preserving Koke‘e State Park's natural and cultural resources; and

• Advising and assisting in the implementation of the Koke‘e State Park Master Plan.

Requires the Department of Land and Natural Resources to enforce all provisions of recreation-residential use lease agreements and to establish a schedule of penalties and fines for the breach of any provisions of the lease agreements.

PENALTIES

Civil Penalties for Violations on Public Lands. (HB3178, SD2, CD1) Increases the amounts of civil penalty fines that the Board of Land and Natural Resources is authorized to assess for:

• Encroachments upon public lands;

• Engaging in prohibited use of public lands; and

• Conducting any prohibited activity on public lands.

Penalties for Violations Within the Conservation District. (HB3177, HD1, SD2, CD1) Increases the maximum penalty for violations of chapter 183C, Hawaii Revised Statutes, relating to protecting and managing the natural resources of the State in the state land use conservation district, or any rule adopted in accordance therewith to up to no more than $15,000 per violation, and an additional $15,000 per day for a wilful violation after notification of the violation by the Department of Land and Natural Resources. Authorizes the Board of Land and Natural Resources to set, charge, and collect fines based on the value of the natural resource damaged and any other factor deemed appropriate, such as the loss of the natural resource to its natural environment and the cost of restoration or replacement.

Public Lands; Criminal Penalties. (SB1891, SD1, HD1, CD1) Establishes that a person who violates chapter 171, Hawaii Revised Statutes, relating to public lands, shall be guilty of a petty misdemeanor and sets out the schedule of fines and penalties. Provides that the State shall not be precluded from seeking civil penalties against a person subject to a criminal action for any violation under this new law.

Page 140 Water and Land Resolutions Adopted

I. Water

FISHING

Ornamental Reef Fish; Establishment of Rules and Fish Replenishment Areas. (SR11, SD1) Urges the Department of Land and Natural Resources (Department) to consult with stakeholders to develop and adopt administrative rules regarding the collection of ornamental reef fish for aquarium use from Hawaii's reefs.

Urges the Department to recommend to the Board of Land and Natural Resources appropriate and reasonable limits on the collection of ornamental reef fish.

Urges the Department to establish fish replenishment areas for the waters surrounding the islands of Oahu and Maui, to be modeled after the program established by the West Hawaii Fisheries Council.

Ornamental Reef Fish; South Maui and Kaneohe Bay. (HCR347, SD1) Urges the Department of Land and Natural Resources (Department) to proceed expeditiously to adopt rules to regulate the ornamental reef fish industry in South Maui and Kaneohe Bay. Requests that in doing so, the Department confer with geographical area stakeholders and submit a report of its progress to the Legislature prior to the convening of the 2009 Regular Session.

OTHER ISSUES

Voyaging Canoes; Permanent Port and Dock Facilities. (SR31, SD1) Requests that the Department of Land and Natural Resources cooperate with the Department of Transportation to establish a working group of interested stakeholders to conduct a study on the feasibility of providing permanent port and dock facilities for the voyaging canoes Hokule‘a, Makali‘i, Hokualaka‘i, Mo‘okiha, and Nanahoe. Requires the Department of Land and Natural Resources to report to the Legislature prior to the convening of the 2009 Regular Session.

World Ocean Day. (SCR77, SD1; SR42, SD1) Requests that the President of the United States proclaim June 8th of each year as World Ocean Day to promote and help increase awareness of the ocean's fragile ecosystem through cultural exchanges, educational projects, and mindful consideration by all.

II. Land

CONSERVATION

Hanapepe Salt Ponds Resource Management Plan. (HCR117, SD1) Requests that the Land Division of the Department of Land and Natural Resources (Land Division) assemble various state, county, and community agencies, rights holders, and stakeholders to meet and develop a Hanapepe Salt Ponds Resource Management Plan (Management Plan).

Water and Land Page 141 Requests that the Land Division submit to the Legislature a preliminary report on the Management Plan prior to the convening of the 2009 Regular Session and a final report prior to the convening of the 2010 Regular Session.

Kawainui and Hamakua Marsh Complex. (SR79, SD1) Requests that the Department of Land and Natural Resources consult regularly with Ho‘olaulima ia Kawainui and other concerned community entities to coordinate efforts to protect, conserve, and restore the natural, cultural, and scenic resources of the Kawainui and Hamakua Marsh complex.

HAWAII COMMUNITY DEVELOPMENT AUTHORITY

Hawaii Community Development Authority; Kaka‘ako Draft Mauka Area Plan and Mauka Area Rules. (SR108, SD1) Requests that the Hawaii Community Development Authority (Authority) defer decisions on any application for zoning changes regarding central Kaka‘ako until the completion of the supplemental environmental impact statement process and the subsequent adoption of the Draft Mauka Area Plan and the Mauka Area Rules. In the alternative, requests that the Authority report steps taken to provide the fullest extent of public review and scrutiny of its actions and considerations on the General Growth Properties, Inc. Master Plan application prior to the convening of the 2009 Regular Session.

LEASES

Kanoelehua Industrial Park Leases. (HCR112) Urges the Department of Land and Natural Resources and the County of Hawaii to prepare a coordinated, comprehensive plan to address the needs and concerns of lessees facing eviction upon the expiration of their leases at the Kanoelehua Industrial Park in Hilo, Hawaii and to provide lessees and the Legislature with copies of the plan by no later than 20 days prior to the convening of the 2010 Regular Session.

OTHER ISSUES

Approval of a Land Exchange Between Tiana Partners and the Hawaiian Humane Society. (SCR210, HD1) Approves a land exchange between Tiana Partners and the Hawaiian Humane Society regarding lands situated in Niu Valley on the island of Oahu, under which, among other things, the State's springing executory interest in certain lands will be relinquished in exchange for the conveyance to the State of a 100 percent undivided fee simple interest in 263 acres, identified as Tax Map Key: 3-7-04:02.

Authorizing the Issuance of a Non-Exclusive Easement; Submerged Lands at Lahaina, Maui; Lahaina Yacht Club. (SCR4) Authorizes the Board of Land and Natural Resources to issue a term, non-exclusive easement covering a portion of State-owned submerged lands fronting the property identified as Tax Map Key: (2) 4-5-1:5 at Lahaina, Maui, for the purpose of maintenance and repair of existing concrete pillars and improvements.

Hawaii State Geological Survey. (SR55) Requests that the Legislative Reference Bureau consult with interested stakeholders to conduct a study on establishing a Hawaii State

Page 142 Water and Land geological survey and to report its findings and recommendations to the Legislature prior to the convening of the 2009 Regular Session.

Overgrowth of Vegetation on Kahala Beach. (HCR258) Requests that the Office of Planning, community leaders, and district legislators continue to coordinate with the City and County of Honolulu and the Department of Land and Natural Resources to address the problem of encroaching vegetation on Kahala Beach and to adopt a strategy and plan to address the problem. Requests the Office of Planning to report to the Legislature no later than 20 days prior to the convening of the 2009 Regular Session.

Water and Land Page 143

Page 144 Water and Land WAYS AND MEANS

The Committee on Ways and Means has jurisdiction over programs relating to overall state financing policies, including revenue enhancement, other revenues, cash and debt management, and statewide implementation of planning, programming, budgeting and evaluation; and government structure and finance.

Highlights

After several years of strong economic growth, Hawaii's economy slowed sharply in 2006 and 2007. The impacts are still reverberating throughout the State – the shutdown of two major airlines, business closures, increasing mortgage delinquencies, declining home values, and a decrease in total visitor arrivals. At its March 2008 meeting, the Council on Revenues lowered its January forecast of the general fund tax revenues for fiscal year 2007-2008 from 4.9 per cent to 3.9 per cent. With each percentage point representing approximately $50,000,000, this is a significant decline. Given these forecasts, the Legislature projects that revenues will continue to decline – settling around 3.5 per cent – and has adjusted expenditures accordingly. Inflation is also a factor, with the effects seen throughout the executive supplemental budget bill and in several emergency appropriation bills requesting supplemental funds to cover increased costs for energy, food, health care services, repair and maintenance, and other necessary goods and services.

With considerably lower than projected general fund revenues available, the Legislature sought to preserve and ensure essential health and safety funding in this supplemental budget. Doing so required reductions to the Governor's proposed budget through a combination of denying requests, making vacancy adjustments, and reducing the departments' general fund non-fixed cost "discretionary" budget appropriations.

In total (all means of financing), this year's supplemental budget appropriates $10,789,367,663 in fiscal year 2008-2009, with general fund appropriations of $5,318,212,647. This represents a decrease of $44,764,103 in fiscal year 2008-2009 in general fund appropriations.

The budget provides $3,978,910,000 for capital improvement program projects statewide. Education remains a priority, with $310,193,000 to the Department of Education in bond financing, primarily for classroom renovations, repair and maintenance, and cesspool remediation to meet Environmental Protection Agency mandates. At the University of Hawaii System, $161,446,000 will fund renovation of the University of Hawaii at Manoa Campus Center Complex, system wide capital renewal, deferred maintenance, and health and safety measures; and a new science building for the Maui community college campus.

An efficient system of harbors and airports is vital to the flow of people and goods to, from and within Hawaii, and the budget provides $124,375,000 in revenue bond funds for harbor modernization projects, $130,236,000 for airport modernization, and $183,066,000 for state highway projects in fiscal year 2008-2009.

The budget authorizes $25,000,000 in bond funds to finance additional affordable housing, $1,454,000 in bond funds for the Kaloko Housing Program in West Hawaii, and $26,000,000 to

Ways and Means Page 145 finalize the purchase of the Kukui Gardens project. It also authorizes $17,460,000 for energy conservation and efficiency projects throughout the State.

For more detailed highlights on the Executive and Judiciary budgets (HB2500, HD1, SD1, CD1; HB2700, HD1, SD2, CD1; Act 102) please refer to budget summaries provided by the Senate Committee on Ways and Means and included at the end of these Legislative Accomplishments.

Bills Passed

I. Administrative Matters

Armed Services; Tax Exemption. (HB2605, HD2, SD1) Exempts from vehicle weight taxes one noncommercial motor vehicle registered to a member of the National Guard, military reserve, or armed service, including the Coast Guard, who is assigned to a unit in the State. Takes effect on 10/1/2008.

Audit Recommendations; Implementation Requirements. (HB2908, SD1; Act 36) Requires the Auditor to submit an annual report to the Legislature of each audit recommendation the Auditor has made that is more than one year old and that has not been implemented by the audited agency. Requires any agency that has not implemented a recommendation to submit a written report to the Auditor and the Legislature not later than thirty days after the notification, explaining why the audit recommendation was not implemented and the estimated date of implementation. Requires each agency that is the subject of an audit to provide updates on its progress in implementing the recommendations, at intervals prescribed by the Auditor.

II. Fiscal Matters

Emergency Appropriation; Electricity Costs. (HB3038; Act 3) Appropriates $1,000,000 in general funds to pay for increases in electricity payments for state facilities statewide for fiscal year 2007-2008.

State Bonds; Authorization. (HB118, SD1, CD1) Authorizes the issuance of general obligation bonds, not to exceed $805,079,000. Makes findings required by Article VII, Section 13 of the State Constitution to declare that the issuance of authorized bonds will not cause debt limit to be exceeded.

III. Legislative Matters

Legislative Appropriation. (HB2688, HD1; Act 1) Appropriates funds to provide for the expenses of the Legislature, the Auditor, the State Ethics Commission, the Legislative Reference Bureau, and the Ombudsman. Includes appropriation to the Legislative Reference Bureau to contract with the University of Hawaii to conduct a study of the State's environmental review process.

Page 146 Ways and Means Executive Budget Summary

Office of the Governor

Fiscal Year 2009 General Special Federal Private County Trust Inter.Dept. Revolving Other Base Pos. FY09 37.00 ------(1) Amt. FY09 3,894,690 ------Executive ∆ Pos. FY09 ------(2) Amt. FY09 ------500,000 - - Legislature ∆ Pos. FY09 ------(3) Amt. FY09 (182,367) - - 250,000 - - 500,000 - - CD1 Total Pos. FY09 37.00 ------(3+1) Amt. FY09 3,712,323 - - 250,000 - - 500,000 - -

HIGHLIGHTS OF THE OPERATING BUDGET:

The Governor proposed to add $500,000 in interdepartmental transfer funds for activities to celebrate and commemorate the 50th anniversary of Hawaii statehood. The Legislature did not concur and provided $500,000 in interdepartmental transfer funds and $250,000 in private contributions. The $500,000 in interdepartmental transfer funds is contingent upon the collection of the $250,000 in private contributions.

LEGISLATIVE ADJUSTMENTS TO THE OPERATING BUDGET:

1. The Legislature reduced $97,367 in general funds to reflect a 2.5% discretionary reduction.

2. The Legislature reduced $85,000 in general funds to eliminate funding for a vacant position older than July 1, 2007.

Executive Budget Summary Page 147 Lieutenant Governor

Fiscal Year 2009 General Special Federal Private County Trust Inter.Dept. Revolving Other Base Pos. FY09 8.00 ------(1) Amt. FY09 1,261,138 ------Executive ∆ Pos. FY09 ------(2) Amt. FY09 ------Legislature ∆ Pos. FY09 ------(3) Amt. FY09 (31,528) ------CD1 Total Pos. FY09 8.00 ------(3+1) Amt. FY09 1,229,610 ------

HIGHLIGHTS OF THE OPERATING BUDGET:

None.

LEGISLATIVE ADJUSTMENTS TO THE OPERATING BUDGET:

The Legislature reduced $31,528 in general funds to reflect a 2.5% percent discretionary reduction in the Office of the Lieutenant Governor.

Page 148 Executive Budget Summary Agriculture

Fiscal Year 2009 General Special Federal Private County Trust Inter.Dept. Revolving Other Base Pos. FY09 276.00 50.00 1.00 - - - 9.00 17.00 - (1) Amt. FY09 17,294,198 5,091,769 1,892,776 - - 812,962 1,845,674 11,103,701 - Executive ∆ Pos. FY09 - 2.00 ------(2) Amt. FY09 - 728,126 109,500 ------Legislature ∆ Pos. FY09 - 2.00 ------(3) Amt. FY09 (811,924) 725,626 109,500 ------CD1 Total Pos. FY09 276.00 52.00 1.00 - - - 9.00 17.00 - (3+1) Amt. FY09 16,482,274 5,817,395 2,002,276 - - 812,962 1,845,674 11,103,701 -

HIGHLIGHTS OF THE OPERATING BUDGET:

1. The Governor proposed to add $565,464 in special funds to meet state mandates and conduct harbor inspection programs, early detection and rapid response activities against invasive species. The Legislature concurred.

2. The Governor proposed to add 0.5 position and $38,907 in special funds to manage agricultural parks. The Legislature did not concur and provided 0.5 position and $37,657 in special funds to reflect an adjustment to equipment costs.

3. The Governor proposed to add 1.5 positions and $103,755 in special funds to manage non- agricultural parks. The Legislature did not concur and provided 1.5 positions and $102,505 in special funds to reflect adjustment to equipment costs.

4. The Governor proposed to add $20,000 in special funds to establish an expenditure ceiling for promotional and marketing activities for the Seal of Quality Program. The Legislature concurred.

5. The Governor proposed to add $109,500 in federal funds to promote sales of specialty crops in Hawaii. The Legislature concurred.

LEGISLATIVE ADJUSTMENTS TO THE OPERATING BUDGET:

1. The Legislature reduced $691,768 in general funds to reflect a 4% discretionary reduction.

2. The Legislature reduced $120,156 in general funds to eliminate funding for vacant positions older than July 1, 2007.

Executive Budget Summary Page 149 Accounting and General Services

Fiscal Year 2009 General Special Federal Private County Trust Inter.Dept. Revolving Other Base Pos. FY09 687.50 53.50 2.50 - - 5.00 34.00 44.00 - (1) Amt. FY09 72,865,946 21,063,623 8,246,498 - - 4,670,814 10,605,689 32,944,305 - Executive ∆ Pos. FY09 1.00 3.00 ------(2) Amt. FY09 1,173,391 876,761 - - - - 100,000 493,880 - Legislature ∆ Pos. FY09 1.00 3.00 ------(3) Amt. FY09 (2,607,095) 920,861 - - - - - 493,880 - CD1 Total Pos. FY09 688.50 56.50 2.50 - - 5.00 34.00 44.00 - (3+1) Amt. FY09 70,258,851 21,984,484 8,246,498 - - 4,670,814 10,605,689 33,438,185 -

HIGHLIGHTS OF THE OPERATING BUDGET:

1. The Governor proposed to add $90,000 in general funds for actuarial valuation of post- employment health benefits plans for Governmental Accounting Standards Board (GASB) reporting standards. The Legislature concurred.

2. The Governor proposed to add $275,000 in general funds to enhance internet services. The Legislature did not concur.

3. The Governor proposed to add $694,600 in general funds for the increase in cost of electricity. The Legislature concurred.

4. The Governor proposed to add $400,000 in revolving funds to install energy efficient ballasts and bulbs in various state parking lots for the Automotive Management - Parking Control Division. The Legislature concurred.

5. The Governor proposed to add $113,791 in general funds to properly compensate 14.5 civil service positions for the Office of Elections. The Legislature concurred.

6. The Governor proposed to add $100,000 in interdepartmental transfer funds from the Department of Human Services to support the Biennium Grants program of the State Foundation on Culture and Arts. The Legislature did not concur.

7. The Governor proposed to add $117,671 in special funds to cover pay adjustments of part-time intermittent workers for Spectator Events and Shows - Aloha Stadium. The Legislature concurred.

8. The Governor proposed to add $759,000 in special funds for stadium seat replacement and utility cost increases for Aloha Stadium. The Legislature did not concur and provided $803,100 in special funds to reflect updated projections of sewage costs.

LEGISLATIVE ADJUSTMENTS TO THE OPERATING BUDGET:

1. The Legislature reduced $3,263,614 in general funds to reflect a 5% discretionary reduction.

2. The Legislature reduced $241,872 in general funds to eliminate funding for vacant positions older than July 1, 2007.

Page 150 Executive Budget Summary Attorney General

Fiscal Year 2009 General Special Federal Private County Trust Inter.Dept. Revolving Other Base Pos. FY09 347.97 18.00 177.68 - - - 54.85 30.50 - (1) Amt. FY09 29,690,945 1,889,738 25,703,229 - - 6,067,383 8,060,717 5,746,603 - Executive ∆ Pos. FY09 18.46 - 0.32 - - - 1.50 3.00 - (2) Amt. FY09 551,411 - (29,173) - - - 644 133,673 - Legislature ∆ Pos. FY09 14.46 - 0.32 - - - 0.50 3.00 - (3) Amt. FY09 (1,424,222) - 45,481 - - - (84,607) 133,673 - CD1 Total Pos. FY09 362.43 18.00 178.00 - - - 55.35 33.50 - (3+1) Amt. FY09 28,266,723 1,889,738 25,748,710 - - 6,067,383 7,976,110 5,880,276 -

HIGHLIGHTS OF THE OPERATING BUDGET:

1. The Governor proposed to add 2.5 positions and $141,875 in general funds for the continued funding of positions provided in Act 180, SLH 2007, for drug nuisance abatement. The Legislature concurred.

2. The Governor proposed to add 5.28 positions and $259,765 in general funds for the additional enforcement of Sex Offender Registration requirements. The Legislature did not concur and provided 5.28 positions and $193,675 in general funds to reflect an updated request from the Department.

3. The Governor proposed to add $91,015 in federal funds for the Coverdell Grant. The Legislature concurred.

4. The Governor proposed to add 1 position and $26,985 in revolving funds for the Notary program to handle increased workload. The Legislature concurred.

5. The Governor proposed to add $80,000 in revolving funds to digitize old notary records. The Legislature concurred.

6. The Governor proposed to add 2 positions and $112,424 in general funds for increased responsibilities in the Criminal Justice Division. The Legislature did not concur.

7. The Governor proposed to add 2 positions and $64,294 in general funds for increased responsibilities in the Personnel Unit. The Legislature did not concur.

8. The Governor proposed to add 1 position and $42,144 in interdepartmental transfer funds for additional legal services for the Hawaii State Hospital. The Legislature concurred.

9. The Governor proposed to add 2 positions and $123,000 in interdepartmental transfer funds for legal services for the state departments. The Legislature did not concur and provided 1 position and $56,250 in interdepartmental transfer funds.

10. The Governor proposed to add 2 positions and $60,000 in general funds for the Sex Offender Registration Program in the Hawaii Criminal Justice Data Center to handle increased workload due to new requirements of the Adam Walsh Act. The Legislature concurred.

11. The Governor proposed to add $70,000 in general funds for geographic search capabilities for the Sex Offender Registration website in order to meet requirements of the Adam Walsh Act. The Legislature did not concur, as request is not necessary to comply with the Act.

12. The Governor proposed to add 2 positions and $20,931 in general funds and $56,881 in federal funds to process backlog cases in the Child Support and Enforcement Agency. The Legislature concurred.

Executive Budget Summary Page 151

LEGISLATIVE ADJUSTMENTS TO THE OPERATING BUDGET:

1. The Legislature reduced $1,360,906 in general funds to reflect a 4.5% percent discretionary reduction.

2. The Legislature reduced $327,527 in general funds and $18,501 in interdepartmental transfer funds to eliminate funding for vacant positions older than July 1, 2007.

Page 152 Executive Budget Summary Business, Economic Development, and Tourism

Fiscal Year 2009 General Special Federal Private County Trust Inter.Dept. Revolving Other Base Pos. FY09 123.50 22.50 4.00 - - - 4.00 31.00 - (1) Amt. FY09 11,653,903 152,436,322 20,303,525 - - 21,923,698 1,590,030 15,150,981 - Executive ∆ Pos. FY09 2.00 - - - - - 1.00 - - (2) Amt. FY09 725,000 8,012,904 1,978,587 - - 25,000,000 3,651,958 408,567 - Legislature ∆ Pos. FY09 1.00 - - - - - 1.00 - - (3) Amt. FY09 (417,095) 9,090,625 1,978,587 - - 10,000,000 1,585,707 464,817 - CD1 Total Pos. FY09 124.50 22.50 4.00 - - - 5.00 31.00 - (3+1) Amt. FY09 11,236,808 161,526,947 22,282,112 - - 31,923,698 3,175,737 15,615,798 -

HIGHLIGHTS OF THE OPERATING BUDGET:

1. The Governor proposed to add $2,000,000 in special funds to allow for unplanned business opportunities for the Hawaii Convention Center. The Legislature concurred.

2. The Governor proposed to add $1,623,390 in interdepartmental transfer funds from the Environmental Response Revolving Fund to support various Bioenergy related requests. The Legislature did not concur and provided $100,000 in special funds.

3. The Governor proposed to add $235,000 in general funds for operational support for the Office of Aerospace Development. The Legislature did not concur and provided $130,000 in general funds.

4. The Governor proposed to add $2,028,568 in interdepartmental transfer funds from the Temporary Assistance for Needy Families Grant for the Hawaii Excellence through Science and Technology, and robotics competition programs. The Legislature did not concur.

5. The Governor proposed to add $200,000 in general funds to address the budget shortage for state grant matching for Small Business Innovation Research and Small Business Technology Transfer grant awarded companies. The Legislature did not concur and provided $100,000 in general funds.

6. The Governor proposed to add $100,000 in general funds to provide companies with technical assistance in writing proposals for Small Business Innovation Research grants. The Legislature did not concur.

7. The Governor proposed to add $1,978,587 in federal funds to offer financing for developers to remediate and redevelop environmentally impaired properties through the Brownsfields Cleanup Revolving Loan Fund. The Legislature concurred.

8. The Governor proposed to add $5,984,678 in special funds to support the renewable hydrogen program. The Legislature did not concur.

9. The Governor proposed to add $408,567 in revolving funds to address a miscalculation resulting from the relocation of the Hawaii Public Housing Authority to a different office building. The Legislature concurred.

10. The Governor proposed to add $25,000,000 in trust funds to allow for the deposit of general obligation bond funds into the Rental Housing Trust Fund. The Legislature did not concur and provided $10,000,000 in trust funds.

LEGISLATIVE ADJUSTMENTS TO THE OPERATING BUDGET:

1. The Legislature provided 3 exempt positions for the Hawaii Tourism Authority to address increasing workload in the Marketing Office and Product Development Office.

Executive Budget Summary Page 153

2. The Legislature provided $1,000,000 in special funds to be used by the Department of Land and Natural Resources for beach restoration.

3. The Legislature provided $6,090,625 in special funds to provide Kolohala Holdings LLP, with sufficient ceiling to manage.

4. The Legislature provided $1,500,000 in interdepartmental transfer funds for the Aloha Tower Development Corporation to further support the Harbors Modernization Plan.

5. The Legislature reduced $557,051 in general funds to reflect a 4.5% discretionary reduction.

6. The Legislature reduced $77,000 in general funds to eliminate funding for a vacant position older than July 1, 2007.

Page 154 Executive Budget Summary Budget and Finance

Fiscal Year 2009 General Special Federal Private County Trust Inter.Dept. Revolving Other Base Pos. FY09 144.00 51.00 - - - 30.00 - - 83.00 (1) Amt. FY09 696,053,945 9,929,994 - - - 10,322,767 890,549,627 - 10,950,216 Executive ∆ Pos. FY09 1.00 4.00 - - - 1.00 - - 16.00 (2) Amt. FY09 (27,929,980) 500,000 - - - 363,806 86,580,492 - 2,750,000 Legislature ∆ Pos. FY09 1.00 4.00 - - - 1.00 - - 16.00 (3) Amt. FY09 (41,570,642) 500,000 - - - 363,806 82,236,717 - 2,750,000 CD1 Total Pos. FY09 145.00 55.00 - - - 31.00 - - 99.00 (3+1) Amt. FY09 654,483,303 10,429,994 - - - 10,686,573 972,786,344 - 13,700,216

HIGHLIGHTS OF THE OPERATING BUDGET:

1. The Governor proposed to add $500,000 in other funds to provide computer hardware and software maintenance and support for the Employees’ Retirement System Pension Management Information System. The Legislature concurred.

2. The Governor proposed to add $2,000,000 in other funds to assist the conversion efforts of Hybrid Plan members with Noncontributory service to Hybrid service. The Legislature concurred.

3. The Governor proposed to add 16 positions, including Retirement Claims Examiners, Information Technology Specialists, and Clerk Typists, to support the Employees’ Retirement System and Pension Management Information System. The Legislature concurred.

4. The Governor proposed to add $250,000 in other funds for overtime expenses for increased workload requirements of the Pension Management Information System and Employees’ Retirement System. The Legislature concurred.

5. The Governor proposed to add $300,000 in trust funds for investment consultant services for the Employer-Union Health Benefits Trust Fund. The Legislature concurred.

6. The Governor proposed to add 1 position and $75,871 in general funds to establish a Deputy Public Defender III for the Kona Branch of the Office of the Public Defender to handle increased workload due to the upcoming change in assignment of criminal cases in the South Kohala and Kau districts. The Legislature did not concur and provided $57,500 in general funds to reflect a three month delay in hire.

7. The Governor proposed to add $500,000 in special funds for the Public Utilities Commission to contract with Hawaii Natural Energy Institute for studies regarding renewable portfolio standards. The Legislature concurred.

8. The Governor proposed to reduce $3,438,000 in general funds and $4,062,000 in interdepartmental transfer funds to reflect reductions in general obligation bond debt service requirements. The Legislature concurred.

9. On February 25, 2008, the Governor transmitted a message that proposed to reduce $11,492,424 in general funds and $4,343,775 in interdepartmental transfer funds to reflect new premium rates adopted by the Hawaii Employer-Union Health Benefits Trust Fund at their January 2008 board meeting. The Legislature concurred.

LEGISLATIVE ADJUSTMENTS TO THE OPERATING BUDGET:

1. The Legislature reduced $1,594,788 in general funds from the Hawai’i Employer-Union Health Benefits Trust Fund to apply a one-time, non-recurring transfer of funds to the Department of Education Charter Schools program.

Executive Budget Summary Page 155

2. The Legislature reduced $286,332 in general funds to reflect a 4% discretionary reduction.

3. The Legislature reduced $248,747 in general funds to eliminate funding for vacant positions older than July 1, 2007.

Page 156 Executive Budget Summary Commerce and Consumer Affairs

Fiscal Year 2009 General Special Federal Private County Trust Inter.Dept. Revolving Other Base Pos. FY09 - 392.00 - - - 5.00 - - - (1) Amt. FY09 - 42,344,754 - - - 2,288,618 - - - Executive ∆ Pos. FY09 - 6.00 ------(2) Amt. FY09 - 2,398,079 ------Legislature ∆ Pos. FY09 - 4.00 ------(3) Amt. FY09 - 2,033,731 ------CD1 Total Pos. FY09 - 396.00 - - - 5.00 - - - (3+1) Amt. FY09 - 44,378,485 - - - 2,288,618 - - -

HIGHLIGHTS OF THE OPERATING BUDGET:

1. The Governor proposed to add 4 positions and $379,643 in special funds to implement the money transmitter regulation program of the Division of Financial Institutions. The Legislature did not concur and provided 3 positions and $235,559 in special funds and imposed a three month delay- in-hire.

2. The Governor proposed to add $1,115,000 in special funds for actuarial services to conduct examinations of domestic insurers for Insurance Regulatory Services Division. The Legislature concurred.

3. The Governor proposed to add $355,000 in special funds for contracted actuarial services for required statutory examinations of captive insurance companies for Insurance Regulatory Services Division. The Legislature concurred.

4. The Governor proposed to add 1 position and $91,622 in special funds for market conduct examinations for Insurance Regulatory Services Division. The Legislature did not concur and provided 1 position. Funding is provided through Act 227, SLH 2007.

5. The Governor proposed to add 1 position and $64,321 in special funds to help address the needs of callers to landlord/tenant hotline for Office of Consumer Protection. The Legislature did not concur.

6. The Governor proposed to add $65,000 in special funds to continue funding the Economic Cadre program of the Business Registration and Securities Regulation Division. The Legislature concurred.

7. The Governor proposed to add 2 temporary positions and $128,643 in special funds to help reduce caseloads to more manageable levels for the Regulated Industries Complaints Office. The Legislature did not concur and provided 1 temporary position and $64,322 in special funds.

8. The Governor proposed to add $20,000 in special funds to enable the department to comply with the Language Access Law. The Legislature concurred.

9. The Governor proposed to add $178,850 in special funds for repair and maintenance and electricity costs of the King Kalakaua Building and the Leiopapa A Kamehameha (State Office Tower) Building. The Legislature concurred.

LEGISLATIVE ADJUSTMENTS TO THE OPERATING BUDGET:

None.

Executive Budget Summary Page 157 Defense

Fiscal Year 2009 General Special Federal Private County Trust Inter.Dept. Revolving Other Base Pos. FY09 151.80 - 72.70 ------(1) Amt. FY09 12,019,959 - 75,641,996 - 464,458 - 12,000,000 - - Executive ∆ Pos. FY09 2.00 - 4.00 ------(2) Amt. FY09 1,145,182 - 281,855 ------Legislature ∆ Pos. FY09 2.00 - 4.00 ------(3) Amt. FY09 4,232,040 - 281,855 ------CD1 Total Pos. FY09 153.80 - 76.70 ------(3+1) Amt. FY09 16,251,999 - 75,923,851 - 464,458 - 12,000,000 - -

HIGHLIGHTS OF THE OPERATING BUDGET:

1. The Governor proposed to add 11.50 temporary positions and $494,448 in general funds to sustain around-the-clock disaster warning personnel for the Civil Defense Division. The Legislature concurred.

2. The Governor proposed to add $114,000 in general funds to sustain the logistics staff to continue maintaining the emergency supply cache for Civil Defense Division. The Legislature concurred.

3. The Governor proposed to add $100,000 in general funds to provide funding to the State Tuition Assistance Program in support of Hawaii National Guardsmen attending the University of Hawaii and the community colleges. The Legislature did not concur.

4. The Governor proposed to add 10 temporary positions and $239,723 in general funds and $308,537 in federal funds to continue funding for October 2006 Kiholo Bay Disaster Recovery Efforts for the Civil Defense Division. The Legislature concurred.

5. The Governor proposed to add 2 positions to reflect conversion from temporary to permanent to comply with National Guard administrative requirements for the Hawaii Air National Guard. The Legislature concurred.

6. The Governor proposed to add 1 position and $26,682 in general funds and reduce $26,682 in federal funds to reflect conversion in means of financing from 100% federal funds to 50% general and 50% federal funds to allow mitigation officer to work on state disaster mitigation programs for Civil Defense Division. The Legislature concurred.

7. The Governor proposed to add 3 positions to reflect conversion from temporary to permanent to provide the state with continuity in the area of earthquake planning, survivable crisis management and population protection for Civil Defense Division. The Legislature concurred.

8. The Governor proposed to add 8 temporary positions to help operate federally funded projects such as the About Face family of programs, the Healthy Life in our Community programs and the Enforcement of Underage Drinking Law Program for the Departmental Administration. The Legislature concurred.

9. The Governor proposed to add $170,329 in general funds to provide for soil and burial vaults for maintenance of veterans' cemeteries. The Legislature concurred

10. On March 28, 2008, the Governor transmitted a message that proposed to add $1,600,000 in general funds for FY09 to fulfill the non-general fund matching requirement for the Public Safety Interoperability Communications Grant by the Federal Department of Homeland Security. The Legislature concurred.

Page 158 Executive Budget Summary 11. On March 28, 2008, the Governor transmitted a message that proposed to add $2,100,000 in general funds to fulfill the non-general fund matching requirement for additional funds made available to the Hawaii National Guard under the Master Cooperative Agreement with the National Guard Bureau. The Legislature concurred.

LEGISLATIVE ADJUSTMENTS TO THE OPERATING BUDGET:

1. The Legislature provided $19,000 in general funds for the Civil Air Patrol to provide for aircraft maintenance, emergency power supplies and ground training.

2. The Legislature reduced $506,606 in general funds to reflect a 4% discretionary reduction.

3. The Legislature reduced $25,536 in general funds to eliminate funding for vacant positions older than July 1, 2007.

Executive Budget Summary Page 159 Education

Fiscal Year 2009 General Special Federal Private County Trust Inter.Dept. Revolving Other Base Pos. FY09 19,994.65 732.50 5.00 - - - - 4.00 - (1) Amt. FY09 2,124,707,003 36,656,825 263,212,546 - - 6,750,000 13,800,000 19,428,000 - Executive ∆ Pos. FY09 108.00 ------(2) Amt. FY09 71,109,386 - - - - 7,000,000 - 322,625 - Legislature ∆ Pos. FY09 115.00 ------(3) Amt. FY09 65,926,766 - - - - 7,000,000 - 1,022,625 - CD1 Total Pos. FY09 20,109.65 732.50 5.00 - - - - 4.00 - (3+1) Amt. FY09 2,190,633,769 36,656,825 263,212,546 - - 13,750,000 13,800,000 20,450,625 -

HIGHLIGHTS OF THE OPERATING BUDGET:

1. The Governor proposed to transfer $2,631,412 in general funds to Public Charter Schools for the conversion of Kamaile Elementary School to charter school status. The Legislature concurred.

2. The Governor proposed to add $1,833,293 in general funds to support two new start-up charter schools, Kona Pacific on Hawaii and Kawaikini New Century Public Charter School on Kauai. The Legislature concurred.

3. The Governor proposed to add $500,000 in trust funds to reflect an increase in the Alu Like Projects Fund for grants. The Legislature concurred.

4. The Governor proposed to add $500,000 in trust funds to reflect an increase in the Donations and Gifts Fund. The Legislature concurred.

5. The Governor proposed to add $700,000 in trust funds to reflect an increase in the Athletic Trust Fund for sports program expenses. The Legislature concurred.

6. The Governor proposed to add $4,500,000 in trust funds to reflect an increase in the Foundations and Other Grants Fund. The Legislature concurred.

7. The Governor proposed to add $600,000 in trust funds to reflect an increase in the OLELO – Educational Program Public TV Fund for grants received under contract from Olelo to be expended by the Teleschool Branch of the Office of Curriculum, Instruction, and Student Support Services for educational programs for the community. The Legislature concurred.

8. The Governor proposed to add $200,000 in trust funds to reflect an increase in the Office of Hawaiian Affairs (OHA) Fund for grants received from OHA to support tutorial and other educational programs at schools for students of Hawaiian ancestry. The Legislature concurred.

9. The Governor proposed to add 108 positions for services for children with Autism to move away from more expensive contracted services. The Legislature concurred.

10. The Governor proposed to transfer $322,625 in revolving funds from the Teacher Housing Fund (HMS807) in the Housing and Community Development Corporation of Hawaii. The Legislature concurred.

11. The Governor proposed to reduce $2,964,749 in general funds for debt service payments to reflect a decrease in budgeted interest payments due to deferral of a bond issuance. The Legislature concurred.

12. The Governor proposed to add $62,687,846 in general funds for the increase in pension accumulation requirement. The Legislature concurred.

Page 160 Executive Budget Summary 13. The Governor proposed to add $9,552,996 in general funds for the increase in social security payments. The Legislature concurred.

14. On February 25, 2008, the Governor transmitted a message that proposed to add $1,795,453 in general funds to reflect FY 2009 health benefits premium rates and updated enrollment projections. The Legislature concurred.

LEGISLATIVE ADJUSTMENTS TO THE OPERATING BUDGET:

1. The Legislature provided $1,594,788 in general funds for the Weighted Student Formula to increase the weight for transiency/mobility from 0.025 to 0.05.

2. The Legislature provided $1,594,788 in general funds for Hawaii Public Charter Schools to increase the per-pupil amount. This is intended to be a one-time, non-recurring addition.

3. The Legislature provided 2 positions and $400,000 in general funds to support Non-School Hour programs for children and youth in grades K-12.

4. The Legislature provided 2 positions and $600,000 in general funds for Homeless Concerns Resource Teachers to assist in addressing homeless concerns on Hawaii and Maui.

5. The Legislature provided $700,000 in revolving funds for the Teacher Housing Revolving Fund pursuant to Act 204, SLH 2005, which transfers the Teacher Housing Fund from the Department of Human Services to the Department of Education.

6. The Legislature reduced $10,564,415 in general funds to reflect a 4% discretionary reduction.

7. The Legislature reduced $603,234 in general funds to eliminate funding for vacant positions older than July 1, 2007.

Executive Budget Summary Page 161 Hawaiian Home Lands

Fiscal Year 2009 General Special Federal Private County Trust Inter.Dept. Revolving Other Base Pos. FY09 18.00 100.00 - - - 77.00 - - - (1) Amt. FY09 920,520 10,668,908 9,600,545 - - 5,587,512 - - - Executive ∆ Pos. FY09 ------(2) Amt. FY09 - - - - - 472,259 - - - Legislature ∆ Pos. FY09 ------(3) Amt. FY09 (36,821) - - - - 572,259 - - - CD1 Total Pos. FY09 18.00 100.00 - - - 77.00 - - - (3+1) Amt. FY09 883,699 10,668,908 9,600,545 - - 6,159,771 - - -

HIGHLIGHTS OF THE OPERATING BUDGET:

None.

LEGISLATIVE ADJUSTMENTS TO THE OPERATING BUDGET:

1. The Legislature provided $100,000 in trust funds to build a monument in Kalawao County to recognize those sent to Kalaupapa with Hanson’s disease.

2. The Legislature reduced $36,821 in general funds to reflect a 4% discretionary reduction.

Page 162 Executive Budget Summary Health

Fiscal Year 2009 General Special Federal Private County Trust Inter.Dept. Revolving Other Base Pos. FY09 2,396.10 2,957.95 357.35 - - - 5.00 67.40 - (1) Amt. FY09 499,445,083 592,917,556 110,025,792 - - - 74,905,144 167,822,848 - Executive ∆ Pos. FY09 15.44 1.80 1.96 - - - - 0.80 - (2) Amt. FY09 16,914,025 7,693,474 3,706,237 - - - 2,022,156 1,648,662 - Legislature ∆ Pos. FY09 40.94 1.80 1.96 - - - - 0.80 - (3) Amt. FY09 10,229,245 11,743,474 3,706,237 - - - 2,172,156 125,272 - CD1 Total Pos. FY09 2,437.04 2,959.75 359.31 - - - 5.00 68.20 - (3+1) Amt. FY09 509,674,328 604,661,030 113,732,029 - - - 77,077,300 167,948,120 -

HIGHLIGHTS OF THE OPERATING BUDGET:

1. The Governor proposed to add $10,000,000 in general funds for the Adult Mental Health Division’s purchase of service contracts for adults with severe and persistent mental illnesses. The Legislature did not concur and provided $9,000,000 in general funds and $1,000,000 in special funds.

2. The Governor proposed to add $209,873 in general funds to support a 25% increase in the City and County of Honolulu sewer rates for commercial accounts, effective July 1, 2007. The Legislature concurred.

3. The Governor proposed to add $2,750,000 in federal funds to reflect the Hawaii Access to Recovery Grant awarded to the Alcohol and Drug Abuse Division in September 2007. The grant will introduce a web-based system of vouchers for recovery support services directed at Child Welfare Services adult family members on Oahu. The Legislature concurred.

4. The Governor proposed to add $1,224,206 in general funds and $1,659,671 in interdepartmental transfer funds to increase the DD/MR Home and Community-Based Services waiver program to pay for claims that meet the requirement of Code of Federal Regulations (CFR) 42. The Legislature concurred.

5. The Governor proposed to add $170,880 in special funds to increase the ceiling of the Domestic Violence and Sexual Assault Special Fund to expand statewide community based prevention initiatives for domestic and sexual assault. The Legislature concurred.

6. The Governor proposed to add $288,255 in federal funds to reflect an award from the U.S. Department of Agriculture for the Women, Infants & Children grant. The Legislature concurred.

7. The Governor proposed to add $1,600,000 in interdepartmental transfer funds to expend TANF funds for Healthy Start and Enhanced Healthy Start services, pursuant to Act 107, SLH 2007. The Legislature concurred.

8. The Governor proposed to add $126,112 in general funds to upgrade the Heating Ventilating and Air Conditioning Control System for the State Laboratories Facility. The Legislature concurred.

9. The Governor proposed to add 1 temporary position and $483,333 in federal funds to establish a federal fund ceiling for the USDA Food Emergency Response Network Cooperative Agreement. The Legislature concurred.

10. The Governor proposed to add $4,159,533 in general funds for collective bargaining increases for providers of emergency ambulance services on Oahu, Hawaii, Kauai, Maui, Molokai, and Lanai. The Legislature did not concur and provided $2,559,533 in general funds and $1,600,000 in special funds.

Executive Budget Summary Page 163 11. The Governor proposed to add $507,190 in special funds to increase the Emergency Medical Services Special Fund ceiling. The Legislature concurred.

12. The Governor proposed to add 2 temporary positions and $6,882,307 in special funds to increase the Trauma System Special Fund ceiling. The Legislature concurred.

13. The Governor proposed to add $225,000 in federal funds to increase the federal fund ceiling for a new Exchange Network Grant to fund additional technical initiatives related to the U.S. EPA’s Central Data Exchange. The Legislature concurred.

14. The Governor proposed to add $1,623,390 in revolving funds to increase the Environmental Response Revolving Fund (ERRF) ceiling to reflect the Governor’s initiative to fund various bioenergy programs. The Legislature did not concur and provided $100,000 in revolving funds.

15. On March 28, 2008, the Governor transmitted a message that proposed to add $1,114,038 in general funds to establish a 22-bed secure residential treatment facility on the grounds of the Hawaii State Hospital. The Legislature concurred.

LEGISLATIVE ADJUSTMENTS TO THE OPERATING BUDGET:

1. The Legislature provided $100,000 in general funds for HIV/AIDS services.

2. The Legislature reduced $4,547,059 in general funds to reflect a 4% discretionary reduction.

3. The Legislature reduced $751,759 in general funds to eliminate funding for vacant positions older than July 1, 2007.

Page 164 Executive Budget Summary Human Resources Development

Fiscal Year 2009 General Special Federal Private County Trust Inter.Dept. Revolving Other Base Pos. FY09 112.00 ------(1) Amt. FY09 16,844,870 700,000 - - - - 4,886,281 - - Executive ∆ Pos. FY09 ------(2) Amt. FY09 ------Legislature ∆ Pos. FY09 ------(3) Amt. FY09 (305,277) ------CD1 Total Pos. FY09 112.00 ------(3+1) Amt. FY09 16,539,593 700,000 - - - - 4,886,281 - -

HIGHLIGHTS OF THE OPERATING BUDGET:

None.

LEGISLATIVE ADJUSTMENTS TO THE OPERATING BUDGET:

The Legislature reduced $305,277 in general funds to reflect a 4% discretionary reduction.

Executive Budget Summary Page 165 Human Services

Fiscal Year 2009 General Special Federal Private County Trust Inter.Dept. Revolving Other Base Pos. FY09 1,307.03 - 1,151.97 - - - 0.50 37.00 - (1) Amt. FY09 776,011,204 450,000 1,041,955,421 10,000 - - 44,706,209 12,839,531 - Executive ∆ Pos. FY09 51.64 - 45.86 - - - (0.50) - - (2) Amt. FY09 5,065,489 - 6,226,767 - - - (16,308) (322,625) - Legislature ∆ Pos. FY09 34.39 - 30.11 - - - (0.50) - - (3) Amt. FY09 (3,566,798) 160,000 6,000,384 - - - (16,308) (322,625) - CD1 Total Pos. FY09 1,341.42 - 1,182.08 - - - - 37.00 - (3+1) Amt. FY09 772,444,406 610,000 1,047,955,805 10,000 - - 44,689,901 12,516,906 -

HIGHLIGHTS OF THE OPERATING BUDGET:

1. The Governor proposed to add $4,300,000 in general funds for Homeless Services to provide operating funds for five new shelters scheduled to come online in FY09 as well as to cover a shortfall in last year’s appropriation. The Legislature did not concur and provided $3,100,000 in general funds.

2. The Governor proposed to add $7,027,516 in federal funds to increase the federal fringe benefit ceiling across all programs to accommodate an increase in the federal fringe benefit rate. The Legislature concurred.

3. The Governor proposed to add $585,000 in general funds for Healthcare Payments to offset new federal restrictions requiring states to impose a one-year uninsured period before a child can be eligible for coverage for the State Children’s Health Insurance Program. The Legislature concurred.

4. The Governor proposed to reduce $322,625 in revolving funds from Teacher Housing to reflect a transfer to Facilities Services (EDN400). The Legislature concurred.

5. The Governor proposed to add 72 positions to reflect conversion from temporary to permanent for General Support for Health Care Payments. The Legislature did not concur and provided 41 positions.

LEGISLATIVE ADJUSTMENTS TO THE OPERATING BUDGET:

1. The Legislature provided $160,000 in special funds to increase the ceiling of the Spouse and Child Abuse Special Account to expand domestic violence services.

2. The Legislature reduced $3,730,414 in general funds to reflect a 4% discretionary reduction.

3. The Legislature reduced $514,788 in general funds and $256,920 in federal funds to reflect vacancy savings.

Page 166 Executive Budget Summary Labor and Industrial Relations

Fiscal Year 2009 General Special Federal Private County Trust Inter.Dept. Revolving Other Base Pos. FY09 266.14 8.00 434.10 ------(1) Amt. FY09 18,159,145 197,108,379 80,207,814 - - - 3,663,344 50,000 - Executive ∆ Pos. FY09 (0.50) ------(2) Amt. FY09 65,000 - - - - - 642,869 - - Legislature ∆ Pos. FY09 (0.50) ------(3) Amt. FY09 (928,976) - (20,231) - - - 1,146,869 - - CD1 Total Pos. FY09 265.64 8.00 434.10 ------(3+1) Amt. FY09 17,230,169 197,108,379 80,187,583 - - - 4,810,213 50,000 -

HIGHLIGHTS OF THE OPERATING BUDGET:

1. The Governor proposed to add $65,000 in general funds to fully fund a partially funded Hearing Officer position for the Labor and Industrial Relations Appeals Board. The Legislature concurred.

2. The Governor proposed to add $696,000 in interdepartmental transfer funds to provide for employment core services and services to Compacts of Free Association clients. The Legislature did not concur and provided $1,200,000 in interdepartmental transfer funds.

LEGISLATIVE ADJUSTMENTS TO THE OPERATING BUDGET:

1. The Legislature reduced $728,966 in general funds to reflect a 4% percent discretionary reduction.

2. The Legislature reduced $265,010 in general funds and $20,231 in federal funds to eliminate funding for vacant positions older than July 1, 2007.

Executive Budget Summary Page 167 Land and Natural Resources

Fiscal Year 2009 General Special Federal Private County Trust Inter.Dept. Revolving Other Base Pos. FY09 482.25 293.00 15.25 - - - - 1.00 - (1) Amt. FY09 33,008,346 56,651,539 13,927,126 - - - - 788,574 - Executive ∆ Pos. FY09 18.00 3.00 ------(2) Amt. FY09 1,524,415 4,806,779 1,258,700 ------Legislature ∆ Pos. FY09 9.00 3.00 ------(3) Amt. FY09 (265,219) 3,666,038 1,258,700 - - - 1,000,000 - - CD1 Total Pos. FY09 491.25 296.00 15.25 - - - - 1.00 - (3+1) Amt. FY09 32,743,127 60,317,577 15,185,826 - - - 1,000,000 788,574 -

HIGHLIGHTS OF THE OPERATING BUDGET:

1. The Governor proposed to add $500,000 in special funds to reflect an increase in the Bureau of Conveyances Fund to replace and enhance existing software and hardware to automate the paperwork processing system through a secure online system for the filing of documents. The Legislature did not concur.

2. The Governor proposed to add $972,500 in federal funds to reflect an increase in the Aquatic Resources Fund and the Hawaiian Island Coral Reef Fund to support the Hawaii Marine Recreational Survey Project, Co-management of Hawaiian Humpback Whale Sanctuary, Instream Flow Project, Monitoring of Bottomfish Populations, Stream/Estuarine Fisheries Studies, Coral Reef Management, Monitoring and the Northwestern Hawaiian Island Marine National Monument. The Legislature concurred.

3. The Governor proposed to add 15 positions and $1,125,732 in general funds for the Division of Conservation and Resources Enforcement to provide clerical support, Conservation and Resources Enforcement Officers (CREO), and start-up costs for each CREO, including motor vehicles. The Legislature did not concur and provided 8 positions and $204,348 in general and $200,000 in special funds.

4. The Governor proposed to add $2,000,000 in special funds to reflect an increase in the Natural Area Reserves Special Fund ceiling for the Management of Natural Area Reserves, Watershed Partnerships Related Projects, Natural Area Partnerships, Youth Conservation Corps, and increased central services costs. The Legislature concurred.

5. The Governor proposed to add $1,800,000 in special funds to reflect an increase in the Park Development and Operation Fund ceiling to allow for the expenditure of Hawaii Tourism Authority funds that are deposited annually. The Legislature did not concur and provided $900,000 in special funds due to pre-existing $900,000 ceiling in the Park Development and Operation Fund.

6. The Governor proposed to add $300,000 in special funds to reflect an increase in the State Parks Special Fund ceiling to design and implement a system for all park permits to be online by 2010. The Legislature concurred.

7. The Governor proposed to add 3 temporary positions and $251,812 in general funds for the Historic Preservation Division for additional personnel, lease space, and reinternment costs. The Legislature did not concur and provided 1 temporary position and $168,644 in general funds.

8. The Governor proposed to add $206,200 in special funds to reflect an increase in the Recreational Fisheries Fund ceiling to support projects on control/eradication of exotic freshwater organisms and a diversity/abundance survey of marine fish species targeted by fishers. The Legislature concurred.

Page 168 Executive Budget Summary LEGISLATIVE ADJUSTMENTS TO THE OPERATING BUDGET:

1. The Legislature provided $1,000,000 in interdepartmental transfer funds to reflect funds expended from the Hawaii Tourism Authority for beach restoration.

2. The Legislature provided $97,780 in general funds for the Division of Aquatic Resources Sanctuary Program to continue funding positions for the protection of the Monk Seal population.

3. The Legislature provided $400,000 in general funds to support the fight against the Coqui Frog infestation in Hawaii, Maui, and Kauai counties.

4. The Legislature provided $256,932 in general funds for the Super Sucker Project to support the removal of alien algae.

5. The Legislature reduced $1,381,310 in general funds to reflect a 4% discretionary reduction.

Executive Budget Summary Page 169 Public Safety

Fiscal Year 2009 General Special Federal Private County Trust Inter.Dept. Revolving Other Base Pos. FY09 2,566.20 8.00 7.00 - - - 64.00 8.00 - (1) Amt. FY09 219,503,916 2,537,667 1,678,143 - 209,721 75,065 5,277,821 7,974,719 742,980 Executive ∆ Pos. FY09 44.00 - - - - - 12.00 - - (2) Amt. FY09 5,127,828 - - - - - 928,176 - - Legislature ∆ Pos. FY09 44.00 ------(3) Amt. FY09 3,686,018 ------CD1 Total Pos. FY09 2,610.20 8.00 7.00 - - - 64.00 8.00 - (3+1) Amt. FY09 223,189,934 2,537,667 1,678,143 - 209,721 75,065 5,277,821 7,974,719 742,980

HIGHLIGHTS OF THE OPERATING BUDGET:

1. The Governor proposed to add 12 positions and $267,001 in general funds for additional Adult Correctional Officers to mitigate existing security shortfalls at the Hawaii Community Correctional Center. The Legislature concurred.

2. The Governor proposed to add $1,171,962 in general funds to address increased costs for food supplies and repair and maintenance. The Legislature concurred.

3. The Governor proposed to add $247,650 in general funds to establish an intensive outpatient program to service moderate risk offenders. The Legislature concurred.

4. The Governor proposed to add 21 positions and $662,250 in general funds for additional mental health services staff to address mental health service deficiencies based on an audit done on the Oahu Community Correctional Center by the U.S. Department of Justice. The Legislature concurred.

5. The Governor proposed to add 3 positions and $155,690 in general funds for additional nurses for the Women’s Community Correctional Center and the Halawa Correctional Facility. The funds also provide for the differential in salaries to convert 3 Licensed Practical Nurse positions into Registered Nurse positions. The Legislature concurred.

6. The Governor proposed to add $226,499 in general funds to provide salary increases for psychiatrists and physicians for recruitment and retention purposes. The Legislature did not concur and provided $191,499 in general funds.

7. The Governor proposed to add $1,373,836 in general funds to cover increased costs associated with providing inmates with health care services. The Legislature concurred.

8. The Governor proposed to add 12 positions and $727,716 in interdepartmental transfer funds from the Department of Transportation to provide deputy sheriffs for neighbor island airports. The Legislature did not concur.

9. The Governor proposed to add 5 positions and $146,094 in general funds for additional staffing for the Inmate Classification Office. The Legislature did not concur and provided 2 positions and $62,862 in general funds.

10. On March 27, 2008, the Governor transmitted a message that proposed to add 3 positions and $235,614 in general funds for additional mental health services staff. The Legislature concurred.

LEGISLATIVE ADJUSTMENTS TO THE OPERATING BUDGET:

1. The Legislature reduced $454,670 in general funds to reflect a 4% discretionary reduction.

Page 170 Executive Budget Summary 2. The Legislature reduced $1,006,224 in general funds to eliminate funding for vacant positions older than July 1, 2007.

Executive Budget Summary Page 171 Subsidies

Fiscal Year 2009 General Special Federal Private County Trust Inter.Dept. Revolving Other Base Pos. FY09 ------(1) Amt. FY09 580,000 ------Executive ∆ Pos. FY09 ------(2) Amt. FY09 ------Legislature ∆ Pos. FY09 ------(3) Amt. FY09 ------CD1 Total Pos. FY09 ------(3+1) Amt. FY09 580,000 ------

HIGHLIGHTS OF THE OPERATING BUDGET:

None.

LEGISLATIVE ADJUSTMENTS TO THE OPERATING BUDGET:

None.

Page 172 Executive Budget Summary

Taxation

Fiscal Year 2009 General Special Federal Private County Trust Inter.Dept. Revolving Other Base Pos. FY09 404.50 ------(1) Amt. FY09 25,084,470 452,000 ------Executive ∆ Pos. FY09 1.00 ------(2) Amt. FY09 590,000 ------Legislature ∆ Pos. FY09 2.00 1.00 ------(3) Amt. FY09 (1,012,427) 417,000 ------CD1 Total Pos. FY09 406.50 1.00 ------(3+1) Amt. FY09 24,072,043 869,000 ------

HIGHLIGHTS OF THE OPERATING BUDGET:

1. The Governor proposed to add $90,000 in general funds for Supporting Services – Revenue Collection to upgrade their network to ensure adequate backup of the Integrated Tax Information Management Imaging System. The Legislature did not concur and provided $90,000 in special funds.

2. The Governor proposed to add $233,000 in general funds for production support needs in administering the county surcharge. The Legislature did not concur.

3. The Governor proposed to add $267,000 in general funds to make additional tax forms available electronically. The Legislature did not concur and provided $267,000 in special funds.

LEGISLATIVE ADJUSTMENTS TO THE OPERATING BUDGET:

1. The Legislature provided $65,000 in general funds to relocate the Department of Taxation’s servers to the Department of Labor and Industrial Relations to prevent damage.

2. The Legislature transferred 1 Economist VI position and $73,044 in general funds from the Department of Business and Economic Development to the Department of Taxation.

3. The Legislature provided 1 Economist VI position and $60,000 in special funds for Supporting Services – Revenue Collection.

4. The Legislature reduced $1,026,979 in general funds to reflect a 4% discretionary reduction.

5. The Legislature reduced $123,492 in general funds to reflect vacancy savings.

Executive Budget Summary Page 173 Transportation

Fiscal Year 2009 General Special Federal Private County Trust Inter.Dept. Revolving Other Base Pos. FY09 - 2,146.00 9.00 ------(1) Amt. FY09 - 600,198,960 36,565,316 140,969 - - - - - Executive ∆ Pos. FY09 - 19.00 ------(2) Amt. FY09 - 30,987,199 1,245,969 ------Legislature ∆ Pos. FY09 - 15.00 ------(3) Amt. FY09 - 42,291,656 1,245,969 ------CD1 Total Pos. FY09 - 2,161.00 9.00 ------(3+1) Amt. FY09 - 642,490,616 37,811,285 140,969 - - - - -

HIGHLIGHTS OF THE OPERATING BUDGET:

1. The Governor proposed to add 4 positions and $332,547 in special funds for airport administrators to help address the increased growth of the airports system into one with multiple large independent airports requiring more attention to be operated effectively. The Legislature did not concur.

2. The Governor proposed to add $241,860 in special funds and $725,579 in federal funds for port security projects including a Command Information System. The Legislature concurred.

3. The Governor proposed to add $3,940,000 in special funds for debt service payment. The Legislature concurred.

4. The Governor proposed to add 12 positions and $1,308,000 in special funds to reflect incorporation of CIP funded staff into the operating budget. The Legislature concurred.

5. The Governor proposed to add $3,000,000 in special funds for consultant services for developing technological improvements called for by the Harbors Modernization Plan. The Legislature did not concur and provided $1,500,000 in special funds.

6. The Governor proposed to add $500,000 in special funds for consultant services for the implementation of a Geographic Information System as well as 40 workstations to provide access to the system. The Legislature concurred.

7. The Governor proposed to add $500,000 in special funds for engineering and architectural services to inspect and evaluate the safety and structural integrity of harbor facilities. The Legislature concurred.

8. The Governor proposed to add $3,100,000 in special funds for contracting drainage pipeline cleaning services for Oahu highways. The Legislature concurred.

9. The Governor proposed to add $600,000 in special funds for training highways staff in storm water management regulations and procedures. The Legislature concurred.

10. The Governor proposed to add $1,000,000 in special funds for consultant services to inspect drainage systems and culverts for structural failure and erosion of Oahu highways. The Legislature concurred.

11. The Governor proposed to add $780,000 in special funds for repairs and maintenance of guardrails for State highways. $400,000 for Oahu highways, $180,000 for Hawaii highways, and $200,000 for Molokai highways. The Legislature concurred.

12. The Governor proposed to add $650,000 in special funds for maintenance of the H-3, Pali and Wilson tunnel facilities. The Legislature concurred.

Page 174 Executive Budget Summary

13. The Governor proposed to add $270,000 in special funds for contracting services for maintenance of the interstate freeway medians on Oahu highways. The Legislature concurred.

14. The Governor proposed to add $1,100,000 in special funds for repairs and maintenance of fencing along Oahu highways. The Legislature concurred.

15. The Governor proposed to add $6,000,000 in special funds for special repairs and maintenance for Oahu highways. The Legislature concurred.

16. The Governor proposed to add $721,000 in special funds for contracting services for maintenance of landscaping. $270,000 for railroad tracks, bike path, and energy corridor from Waipahu Depot Road to Lualualei, $118,000 for H-3 access roads in Halawa Valley, and $333,000 for State roads within Kalaeloa. The Legislature concurred.

17. The Governor proposed to add $240,000 in special funds for contracting services for replacing pavement markings and stripings on Molokai highways. The Legislature concurred.

18. The Governor proposed to add $250,000 in special funds for contracting services for road maintenance including replacing pavement markings, stripings, signs and guardrails on Kauai highways. The Legislature concurred.

19. The Governor proposed to add $433,000 in special funds for contracting services for contraflow operations on Kauai. The Legislature concurred.

20. The Governor proposed to add $911,345 in special funds for additional surcharge requirements to Central Services due to increases in revenues. The Legislature concurred.

21. The Governor proposed to add $630,000 in special funds for special maintenance to the Aliiaimoku Hale Facility to address leaking problems. The Legislature concurred.

22. The Governor proposed to add $520,390 in federal funds to continue supporting the statewide commuter vanpool program. The Legislature concurred.

23. The Governor proposed to add $254,964 in special funds to cover an increase in risk management costs. The Legislature concurred.

24. On March 28, 2008, the Governor transmitted a message that proposed to add $11,285,000 in special funds for a new financial accounting system for the Highways Division. The Legislature concurred.

LEGISLATIVE ADJUSTMENTS TO THE OPERATING BUDGET:

1. The Legislature provided $100,000 in special funds for consultant services for an aircraft noise and operation monitoring system for Honolulu and Hilo International Airports.

2. The Legislature provided $1,500,000 in special funds to be used by the Aloha Tower Development Corporation to further support the Harbors Modernization Plan.

3. The Legislature provided $287,500 in special funds to provide equipment for the purposes of stream maintenance.

Executive Budget Summary Page 175 University of Hawai`i

Fiscal Year 2009 General Special Federal Private County Trust Inter.Dept. Revolving Other Base Pos. FY09 6,422.59 407.25 97.66 - - - - 140.75 - (1) Amt. FY09 714,532,333 320,251,607 11,005,438 - - - - 97,966,066 - Executive ∆ Pos. FY09 39.00 ------10.00 - (2) Amt. FY09 24,159,756 3,000,000 ------Legislature ∆ Pos. FY09 51.00 46.00 - - - - - 10.00 - (3) Amt. FY09 13,767,355 7,086,449 - - - - - 480,000 - CD1 Total Pos. FY09 6,473.59 453.25 97.66 - - - - 150.75 - (3+1) Amt. FY09 728,299,688 327,338,056 11,005,438 - - - - 98,446,066 -

HIGHLIGHTS OF THE OPERATING BUDGET:

1. The Governor proposed to add 25 positions and $933,632 in general funds for Campus Security for the University of Hawaii Manoa. The Legislature did not concur and provided 25 positions and $580,024 in general funds to reflect a three month delay in hire.

2. The Governor proposed to add 8 positions and $2,500,000 in general funds to maintain and improve library collections and services. The Legislature did not concur and provided 8 positions and $2,399,875 in general funds to reflect a three month delay in hire.

3. The Governor proposed to add 3 positions and $233,185 in general funds for safety and security for the University of Hawaii Hilo. The Legislature did not concur and provided 3 positions and $185,689 in general funds to reflect a three month delay in hire.

4. The Governor proposed to add 3,000,000 in special funds for University of Hawaii Hilo to reflect ceiling increases for Tuition and Fees Special Fund, University Revenue Undertaking Special Fund, and Auxiliary Enterprise Special Fund. The Legislature concurred.

5. The Governor proposed to add $57,780 in general funds for contracted security for the University of Hawaii West Oahu for its Leeward campus and its off-campus Island Pacific Academy. The Legislature did not concur and provided $12,500 in general funds.

6. The Governor proposed to add 1 position and $401,348 in general funds for Campus Security for Honolulu Community College. The Legislature did not concur and provided 1 position and $310,661 in general funds to reflect a three month delay in hire.

7. The Governor proposed to add 2 positions and $226,596 in general funds for Campus Security for Kapiolani Community College. The Legislature did not concur and provided 2 positions and $208,077 in general funds to a reflect three month delay in hire.

8. The Governor proposed to add $336,000 in general funds for Campus Security for Leeward Community College. The Legislature did not concur and provided $116,000 in general funds for equipment.

9. The Governor proposed to add 2 positions and $309,196 in general funds for Campus Security for Windward Community College. The Legislature did not concur and provided 2 positions and $263,147 in general funds to reflect three month delay in hire and adjust equipment cost.

10. The Governor proposed to add 2 positions and $507,528 in general funds for Campus Security for Hawaii Community College. The Legislature did not concur and provided 2 positions and $358,979 in general funds to reflect three month delay in hire and adjust other current expense cost.

Page 176 Executive Budget Summary 11. The Governor proposed to add 2 positions and $501,596 in general funds for Campus Security for Maui Community College. The Legislature did not concur and provided 2 positions and 383,047 in general funds to reflect three month delay in hire and adjust other current expense cost.

12. The Governor proposed to add 2 positions and $610,996 in general funds for Campus Security for Kauai Community College. The Legislature did not concur and provided 2 positions and $262,477 in general funds to reflect three month delay in hire and adjust other current expense cost.

13. The Governor proposed to add 2 positions and $237,500 in general funds for security and health and safety issues for the Community Colleges on a system-wide basis. The Legislature did not concur and provided $245,625 in general funds.

14. The Governor proposed to reduce $1,097,251 in general funds to reflect decrease in payments for debt service. The Legislature concurred.

15. The Governor proposed to add $16,154,285 in general funds to reflect an increase in pension payments. The Legislature concurred.

16. The Governor proposed to add $2,247,365 in general funds to reflect an increase in social security payments. The Legislature concurred.

17. On February 25, 2008 the Governor transmitted a message that proposed to reduce $6,139,228 in general funds to reflect FY09 health benefits premium rates and updated enrollment projections. The Legislature concurred.

LEGISLATIVE ADJUSTMENTS TO THE OPERATING BUDGET:

1. The Legislature provided $30,000 in revolving funds and $40,000 in special funds for improvements in security and surveillance for the University of Hawaii Manoa.

2. The Legislature provided 1 position and $360,000 in special funds for accreditation and assessment initiatives for the University of Hawaii Manoa.

3. The Legislature provided 40 positions and $562,500 in special funds for Teaching Assistants for undergraduate sections at the University of Hawaii Manoa.

4. The Legislature provided $350,000 in revolving funds to upgrade classroom equipment at the University of Hawaii Manoa.

5. The Legislature provided 2 positions and $60,000 in general funds and $60,000 in special funds for additional Clinical Psychologists for the Counseling and Student Development Center at the University of Hawaii Manoa.

6. The Legislature provided $200,000 in special funds, $100,000 in revolving funds, and $200,000 in general funds for additional lighting fixtures at the University of Hawaii Manoa.

7. The Legislature provided $1,142,080 in special funds for Women Scholarships for Title IX compliance for the University of Hawaii Manoa.

8. The Legislature provided 1 position and $32,250 in general funds for the Children's Center at the University of Hawaii Manoa.

9. The Legislature provided 0.5 position and $51,250 in general funds for the University of Hawaii Manoa Center for Smart Building and Community Design to broaden its involvement with

Executive Budget Summary Page 177 researchers in the School of Ocean and Earth Sciences and Technology and across the University to address critical facilities and operational issues.

10. The Legislature provided 1 position and $60,000 in general funds to assist the University of Hawaii Manoa in addressing the need to carry out deferred repairs and maintenance throughout the campus.

11. The Legislature provided $25,000 in general funds and $75,000 in special funds for the University of Hawaii Student Patrol Program to hire additional students to assist with security escorts and patrolling.

12. The Legislature provided 1 position and $33,750 in general funds for the University of Hawaii Law Library.

13. The Legislature provided $650,000 in general funds for the Hyperbaric Treatment Center, John A. Burns School of Medicine.

14. The Legislature provided 1 position and $182,500 in general funds for the University of Hawaii Hilo for the restoration of a necessary library position and 5 Mauna Kea Rangers.

15. The Legislature provided 1 position and $37,500 in general funds and $150,000 in special funds for the University of Hawaii Hilo to increase safety education on campus.

16. The Legislature provided 4 positions and $141,869 in general funds and $141,869 in special funds for physical and mental health services for the University of Hawaii Hilo.

17. The Legislature provided 1 position and $59,550 in general funds for instructional resources for Distance Education programs at the University of Hawaii West Oahu.

18. The Legislature provided $820,000 in general funds and $1,118,000 in special funds for new and replacement equipment for the University of Hawaii Community Colleges.

19. The Legislature provided $85,000 in general funds for the Aquarium to replace a well water sump cover and install an Occupation Safety and Health Act approved service scaffolding and railings.

20. The Legislature provided 3 positions and $237,000 in special funds and $121,250 in general funds for efforts to improve articulation and transfer in the University of Hawaii System.

21. The Legislature provided 0.5 position and $114,500 in general funds for an administrative position to support the Candidate Advisory Council for the Board of Regents.

22. The Legislature reduced $4,546,087 in general funds to reflect a 4% percent discretionary reduction.

23. The Legislature reduced $852,249 in general funds to reflect vacancy savings from vacant positions.

Page 178 Executive Budget Summary Judiciary

Fiscal Year 2009 General Special Federal Private County Trust Inter.Dept. Revolving Other Base Pos. FY09 1,919.50 41.00 ------(1) Amt. FY09 136,507,184 9,140,083 - - - - - 343,261 - Judiciary ∆ Pos. FY09 25.00 ------(2) Amt. FY09 7,707,185 ------Legislature ∆ Pos. FY09 13.00 ------(3) Amt. FY09 6,349,251 53,000 ------CD1 Total Pos. FY09 1,932.50 41.00 ------(3+1) Amt. FY09 142,856,435 9,193,083 - - - - - 343,261 -

HIGHLIGHTS OF THE OPERATING BUDGET:

1. The Judiciary proposed to add $746,954 in general funds across all programs for an incremental salary increase for justices and judges. The Legislature concurred.

2. The Judiciary proposed to add 4 positions and $3,085,390 in general funds across all programs for the payment of higher fees for Guardians Ad Litem (GAL’s) and court-appointed counsel. The Legislature did not concur and provided $29,000 in general funds for Fifth Circuit and provided for contracted GAL services for the First, Second and Third Circuits.

3. The Judiciary proposed to add $28,000 in general funds for the First Judicial Circuit to provide medical care to juveniles housed at the juvenile detention facility. The Legislature concurred.

4. The Judiciary proposed to add $111,479 in general funds for the First Judicial Circuit to replace 8 metal detectors and 2 x-ray machines at Kaahumanu Hale. The Legislature concurred.

5. The Judiciary proposed to add $120,560 in general funds for the First Judicial Circuit to replace air conditioner condenser water pipes at Kauikeaouli Hale. The Legislature concurred.

6. The Judiciary proposed to add $450,400 in general funds for the First Judicial Circuit to replace carpeting in high-traffic areas at Kaahumanu Hale and Kauikeaouli Hale. The Legislature concurred.

7. The Judiciary proposed to add $416,000 in general funds across all programs to facilitate payment of increased psychiatric/psychological fees. The Legislature concurred.

8. The Judiciary proposed to add 4 positions and $486,189 in general funds for the Second Judicial Circuit to expand the Maui/Molokai Drug Court. The Legislature did not concur and provided 4 positions and $443,064 in general funds to reflect a three month delay in hire.

9. The Judiciary proposed to add 4 positions and $278,358 in general funds for the Third Judicial Circuit to provide additional judgeship and staff for the Hamakua and North/South Kohala divisions. The Legislature did not concur and provided 4 positions and $215,637 in general funds to reflect a three month delay in hire.

10. The Judiciary proposed to add $219,385 in general funds for Administration to expand court interpreter services at all judiciary points of contact with the public. The Legislature did not concur and provided $110,000 in general funds.

11. The Judiciary proposed to add $442,472 in general funds for Administration for risk management. The Legislature concurred.

Executive Budget Summary Page 179 LEGISLATIVE ADJUSTMENTS TO THE OPERATING BUDGET:

1. The Legislature provided $1,906,658 in general funds across all programs to reflect use of contracted services for GAL’s and court-appointed counsel.

2. The Legislature provided $65,000 in general funds for First Circuit for a folding machine.

3. The Legislature provided $250,000 in general funds for First Circuit for mental health court.

4. The Legislature reduced $31,000 in general funds for the Third Judicial Circuit to reflect savings from no longer needing a per diem judge to travel to the Hamakua North/South Kohala division to hear cases.

5. The Legislature provided $150,000 in general funds for domestic violence services.

6. The Legislature reduced 1 position and $94,283 in general funds from Administration to reflect a transfer-out to Judicial Selection Commission.

7. The Legislature reduced $1,019,554 in general funds to reflect a discretionary reduction.

8. The Legislature provided $800,000 for the Legal Aid Society of Hawaii grant, $400,000 for the Volunteer Legal Services grant, $75,000 for the Hawaii Family Law Clinic grant, $200,000 for the Children’s Alliance of Hawaii grant and $292,683 for the Na Loio grant.

Page 180 Executive Budget Summary LIST OF MEASURES PASSED by the 2008 Legislature

Agriculture and Hawaiian Affairs

SENATE BILL(S) SB1035, SD1, HD1, CD1 (Act 68) Makahiki Commemoration Day SB2499, HD1, CD2 (Act 71) Making Taro the State Plant SB2584, SD2, HD1 Honey as an Agricultural Commodity SB2646, SD2, HD2, CD1 Important Agricultural Lands SB2849, SD1, HD1, CD1 Agricultural-Energy Facilities SB2850, SD2, HD2, CD1 Department of Agriculture; Biosecurity Program SB2895, SD1, HD1, CD1 (Act 111) Cruelty to Equine Animals SB2915, SD2, HD1, CD1 Taro Security and Purity Task Force SB2956, SD1, HD1 (Act 46) Hawaii-Produced Milk

HOUSE BILL(S) HB2085, HD1, SD2 Agribusiness Development Corporation; Qualifications of Board of Directors and Preparation of Strategic Plan HB2261, HD2, SD1 Agricultural and Aquacultural Loans; Sustainability Projects HB2293, HD1, SD2, CD2 Authority of Agribusiness Development Corporation; Acquisition of Galbraith Estate Lands HB2450, HD1, SD2, CD1 Boundary Amendments for Lands Contiguous or Adjacent to Agricultural Lands HB2502, HD2 (Act 31) Solar Energy Facilities in Agricultural District HB2517, HD1, SD1 (Act 40) Designation of Restricted Plants and Prohibition on Sale of Noxious Weeds HB2739, HD1, SD2, CD1 Agricultural Business Within Enterprise Zones HB2810, HD1, SD1, CD1 Preferential Agricultural Water Rates HB2843, HD2, SD2, CD1 Inspection, Quarantine, and Eradication Service Fee HB2965, HD2, SD2 (Act 97) Agricultural Water Security HB3120, HD2, SD1, CD1 (Act 109) Lease of Animal Quarantine Facilities HB3126, SD2, CD1 Increased Agriculture Loan Ceiling Under the Hawaiian Homes Commission Act

SENATE CONCURRENT RESOLUTION(S) SCR234 Geographically Disadvantaged Farmers; Federal Legislation

List of Measures Passed Page 181 HOUSE CONCURRENT RESOLUTION(S) HCR208 Invasive Species; State Inspection Programs HCR326, HD2 Hawaiian Cacao Task Force HCR345 Office of Hawaiian Affairs; Televised Meetings

SENATE RESOLUTION(S) SR76 Important Agricultural Lands; Galbraith Estate Lands SR120 Queen Liliu‘okalani's Birthday SR121, SD1 Hawaiian Language Signs at the State Capitol SR137 Geographically Disadvantaged Farmers; Federal Legislation

Commerce, Consumer Protection and Affordable Housing

SENATE BILL(S) SB1809 (Act 13) Condominiums; Condominium Associations; Special Meetings SB2169, SD1, HD1 Liquor Licenses; Wineries SB2292 (Act 4) Automated Teller Machines; Transaction Fees SB2293, SD1, HD1, CD1 Affordable Housing; For-Sale Multi-Family Condominium Developments; Exemptions SB2373, SD1, HD2, CD1 Pseudoephedrine Sales; Electronic Sales Log; Narcotics Enforcement; Penalties SB2401, SD1 (Act 28) Condominiums; Housekeeping Amendments SB2402, SD1 (Act 19) Volume 11, Hawaii Revised Statutes; Trade Regulation and Practice; Uniform Commercial Code SB2454, SD1, HD1, CD1 Non-Judicial Mortgage Foreclosures; Access to Information SB2782, SD2, HD2 (Act 53) Scrap Metal; Beer Kegs; Penalties SB2833, SD1, HD1, CD1 Sustainability; Hawaii 2050 Sustainability Plan; University of Hawaii at Manoa's Public Policy Center; Report SB3006, SD1, HD2 (Act 54) Business Registration; Corporate Dissolution; Effect of Expiration SB3008, SD2, HD1, CD1 Code of Financial Institutions; Updates; Housekeeping Amendments SB3009, SD2, HD2, CD1 Money Transmitters; Housekeeping Amendments; Fee Structures SB3019, SD1, HD2 Insurance; Insurance Investment; Investment Pools SB3023, SD2, HD2, CD1 Insurance; Special Purpose Financial Captive Insurance Companies; Sponsored Captive Insurance Companies

Page 182 List of Measures Passed SB3030, SD2, HD2, CD1 Mixed Martial Arts; Fee Structure SB3174, SD2, HD2, CD1 Affordable Housing; Hula Mae Multifamily Revenue Bond Authorization

HOUSE BILL(S) HB94, HD1, SD2, CD1 Life Settlements Model Act; Stranger-Originated Life Insurance; National Conference of Insurance Legislators HB2169, HD1 (Act 9) Hawaii Medical Board; Name Change HB2254, HD2, SD1 (Act 51) Financial Institutions; Name or Trademark Fraud HB2255, HD2, SD2, CD1 Life Insurance; National Association of Insurance Commissioners; Employee Group Life Insurance Policies HB2326, HD2, SD1 Mortgage Foreclosures; Mortgage Rescue Fraud Prevention Act; Consumer Protections; Distressed Property Consultant HB2347, HD1 (Act 32) Scrap Dealers; Prohibitions and Penalties HB2372, HD2, SD2, CD1 Time Share Plans; Limited Permit; Offer or Sale of Time Share Interests HB2438, HD2, SD2, CD1 Reduced Ignition Propensity Cigarettes; Cigarette Sales; State Fire Council HB2460, SD1 (Act 76) Condominiums; Certificate of Deposit Account Registry Service Network; Condominium Association Funds HB2492, HD1, SD1, CD1 Planned Community Associations; Board of Directors Meeting Minutes; Disclosure Statements HB2559, HD2, SD1 (Act 55) Uniform Unclaimed Property Act; Updates and Amendments HB2589, HD2, SD2 (Act 91) Scrap Dealers and Recyclers; Copper Purchases; Payment by Check; Penalties HB2894, SD1 (Act 70) Planned Communities; Restatement of Planned Community Association Documents; Amendments to Planned Community Association Documents HB2920, SD1, CD1 Notary Public; Notarized Documents; Fraud Prevention HB3080, HD1 (Act 7) Public Utilities; Property Transfers; Public Utilities Commission; Approval Exemption HB3085, HD2, SD1 (Act 108) Business Registration; Trade Names; Registration; Enforcement HB3109, SD1 (Act 63) Dispensing Opticians; Licensure; Non-Corrective Contact Lenses HB3325, HD2 (Act 14) Uniform Land Sales Practices Act; Time Shares; Exemption HB3331, HD2, SD2, CD2 Condominiums; Mediation; Arbitration; Administrative Hearing

SENATE CONCURRENT RESOLUTION(S) SCR41, SD1 Industrial Hygiene, Safety, and Health Physics Professions; Sunrise Review; Auditor; Report

List of Measures Passed Page 183 HOUSE CONCURRENT RESOLUTION(S) HCR125, HD1 Affordable Housing; Leasehold Conversion; Auditor; Study

Economic Development and Taxation

SENATE BILL(S) SB2153, SD1, HD1 (Act 58) Income Taxation; Mandatory Income Tax Credit SB2196, SD2, HD2, CD1 Commercial Activities on Ocean Waters SB2433, SD2, HD1 Iolani Palace; Receipt of Funds SB2434, HD1, CD1 Aloha Stadium; Authority Members SB2456, SD2, HD1, CD1 Harassment by Impersonation SB2464, HD1, CD1 (Act 72) Hawaiian Monk Seal; State Mammal SB2569, HD1 (Act 48) Museum of Hawaiian Music and Dance; Committee Extension SB2644, SD1, HD1, CD1 State Historic Preservation Officer; Qualifications SB2803, SD1, HD1, CD1 Personal Information; Identity Theft Protection SB3166, HD1, CD1 Hawaii Community Development Authority; Kakaako Small Business Representatives

HOUSE BILL(S) HB1412, HD1, SD1, CD1 Integrated Tax Services and Management Special Fund; Established; Uses of and Expenses for the Integrated Tax Services and Management Special Fund; Appropriation; Performance-based Contracts; Annual Reporting Requirement; General Fund Repayment; Electronic Filing Requirement HB1755, HD1, SD1 (Act 89) General Excise Tax; Service-to-Service Wholesale Transactions; Warranty Obligations HB2486, SD1, CD1 Historic Preservation; Historic Buildings; Photographs HB2781, HD2, SD2, CD1 Small Business; Rights; Administrative Rules Impact HB2955, HD1, SD1 Archaeological Data Survey HB3037 (Act 2) Aloha Stadium; Emergency Appropriation HB3191, HD1, SD2 (Act 93) Conforming Hawaii Income Tax Law to the Internal Revenue Code HB3343, HD1 (Act 15) Filipino-American History Month; Designated

SENATE CONCURRENT RESOLUTION(S) SCR5, SD1 International Interfaith Conference; All Believers Network SCR70 University of Hawaii; Degree Programs for Sports and Entertainment Management

Page 184 List of Measures Passed SCR96, SD1 Auditor; Natural Energy Laboratory of Hawaii; Audit SCR212, SD2 Auditor; Department of Business, Economic Development, and Tourism; Audit SCR225, SD1 State Foundation on Culture and the Arts

HOUSE CONCURRENT RESOLUTION(S) HCR81, HD1 Tartan Day in Hawaii; Designation

SENATE RESOLUTION(S) SR88, SD1 Taxation; Tax Credits and Exemptions SR89, SD1 General Excise Tax; Commissions on Imported Tangible Personal Property SR132, SD1 State Foundation on Culture and the Arts

Education

SENATE BILL(S) SB2004, SD2, HD2, CD1 DOE; SPED; Due Process; Hearings SB2080, SD2, HD2, CD1 HTSB; Teacher Licensure; Sexual Offenses SB2163, SD1, HD1, CD1 DOE; Emergency Hires; Teacher Licensure Requirements SB2263, SD2, HD1 UH; Board of Regents; Disclosure SB2449, SD2, HD2, CD1 DOE Employees; Probationary Period SB2482, SD2 UH; Institute of Marine Biology; Appropriation SB2652, SD2, HD2, CD1 BOE; Substitute Teachers; Wage Adjustments SB2663, SD2, HD2, CD1 HTSB; Membership; Powers and Duties SB2668, SD2, HD1, CD1 UH; Board of Regents; Candidate Advisory Council SB2878, SD2, HD2, CD1 DOE; DHS; Early Childhood Education SB2879, SD2, HD1, CD1 DOE; SPED; Power of Attorney SB3252, SD2, HD2, CD1 Teacher Recruitment and Retention; Appropriation

HOUSE BILL(S) HB2045, SD1 (Vetoed 4/29/08) UH; Global Youth Center HB2163, HD2, SD1 (Act 37) UH; Preaudit of Payments HB2245, HD1, SD2, CD1 (Act 106) UH; Commercial Enterprises Revolving Fund HB2369 (Act 33) DOE; After-School Plus Program Revolving Fund HB2441 (Act 24) DOE; UH; Students; Workers' Compensation HB2547, SD1 (Act 74) Maui Preparatory Academy HB2614, SD1 (Act 73) Island Pacific Academy; SPRBs HB2971, HD1, SD2 DOE; Online Learning Task Force

List of Measures Passed Page 185 HB2972, HD1, SD2, CD1 DOE; School Facilities; Facilities Alignment Commission HB2978, HD1, SD2, CD1 UH; Budgeting

SENATE CONCURRENT RESOLUTION(S) SCR57 DOE; Pahoa High and Intermediate School; Helene H. Hale SCR72, SD1 DOE; Extended School Year or School Hours; Study SCR74, SD1 DOE; Truancy Rate Reduction; Working Group SCR83, SD1 HTSB; Accountability Structure SCR84, SD1 DOE; Vegetarian/Vegan School Lunches SCR88, SD1 DOE; Shaded Play Areas SCR94 UH; School of Public Health SCR111 DOE; Highly Qualified Teachers; Curricular Materials SCR114, SD1 DOE; Office of Human Resources; Advisory Group SCR115, SD1, HD1 DOE; Model Pilot Complex SCR118, SD1, HD1 UH; College of Social Sciences; Funding Utilization/Student Achievement; Working Group SCR120 UH; Philippine Language Courses SCR134, SD2, HD1 DOE; DOH; Procurement SCR158, SD1 DOE; Kihei High School; Financing Agreement SCR180 UH; Revenue Maximization SCR220 DOE; Project Graduation

HOUSE CONCURRENT RESOLUTION(S) HCR71, HD2 BOE; DOE; School Buses; Seat Belts HCR116, SD1 UH; Hawaii Agriculture Diagnostic Center; Survey HCR126, HD1, SD1 DOE; DOH; Anger Management Program; Study HCR226, SD1 UH; JABSOM; Physician Shortage; Study HCR260, HD1 UH Hilo; CAFNRM; Kulani Correctional Facility Programs; Study HCR265 DOE; Kapaa Library; Relocation HCR276, HD1 UH; School of Social Work; Myron Thompson HCR294 UH; Cancer Research Center of Hawaii HCR312, SD1 UH; High Technology Development Center HCR314 UH; Rehabilitative and Related Services; Graduate Loan Program HCR357, HD1 UH; CTAHR; Multipurpose, Multi-user Processing Facility; Study

Page 186 List of Measures Passed SENATE RESOLUTION(S) SR138, SD1 UH; Applied Archaeology; DLNR; Archaeology Working Group

Energy and Environment

SENATE BILL(S) SB644, SD3, HD3, CD1 Solar Energy Water Heating Requirement; Residential Tax Credit Modification SB871, SD2, HD2, CD1 Public School Food Waste Recycling Pilot Project SB988, SD2, HD3, CD1 Establishment of Ratepayer-Funded Photovoltaic Rebate Program SB1720, SD1, HD2 (Act 104) Jacoby Development, Inc. - Geoplasma LLC; Plasma Municipal Solid Waste Processing System; Special Purpose Revenue Bonds SB1793, SD1, HD1, CD1 Natural Energy Laboratory of Hawaii Authority Decision Making Authority; Structure of the Board of Directors SB2034, HD2 (Act 103) Oceanlinx Hawaii LLC; Ocean Wave Energy; Special Purpose Revenue Bonds SB2808, SD2, HD1 (Act 110) Jurisdiction Over Environmental Assessments SB2843, SD2, HD3, CD1 Electronic Waste Recycling Act SB2933, SD2, HD2, CD1 Preventing Bans and Unreasonable Restrictions on Clotheslines SB3001, SD2, HD2, CD1 (Act 118) Energy-Efficiency and Demand-Side Management Programs and Services; Public Benefits Fee SB3190, HD1 (Act 105) Sopogy, Inc; Solar Farm; Special Purpose Revenue Bonds

HOUSE BILL(S) HB647, HD2 (Act 25) Repeal of the Energy Resources Public-Private Advisory Committee HB2168, HD1 (Act 116) H2 Technologies Incorporated; Hydrogen Generation; Automobile Fuel Conversion Garage; Special Purpose Revenue Bonds HB2263, SD1 (Vetoed 4/29/08) Director of Transportation; Regulation of Harbor Noise HB2505, HD2, SD2, CD1 Renewable Energy Facilitator Position; Energy Security Special Fund HB2507, HD1, SD2, CD1 Greenhouse Gas Emissions Reduction Task Force Program Manager and Project Assistant/Researcher Positions HB2550, HD2, SD2, CD1 Net Energy Metering Statute; Net Energy Metering Component HB2661, HD2, SD2, CD1 Hui Mana ‘Oma‘o; SPRBs

List of Measures Passed Page 187 HB2863, HD2, SD2, CD1 Renewable Energy Facility Siting Process HB2977, HD1, SD1, CD1 Systematic Approach to Control Coqui Frog Infestations HB3151, HD2, SD1 (Act 83) Electronic Permitting Fees; Department of Health; Environmental Programs HB3179, SD1, CD1 (Act 90) Definition of "Renewable Energy Producer"

HOUSE CONCURRENT RESOLUTION(S) HCR235, HD1 Supporting Federal Tax Incentives; Encouraging Use of Renewable Energy Sources

SENATE RESOLUTION(S) SR65 Global Warming Task Force SR78, SD1 Voluntary Polystyrene Foam Alternative Products Use Program

Health

SENATE BILL(S) SB69, SD2, HD3, CD1 Health Care Coverage Assistance; Children's Health Care SB1487, SD2, HD2, CD1 Controlled Substances SB1802, HD1, CD1 (Act 98) Mental Health Records; Confidentiality; Exceptions SB1804, SD2, HD2, CD1 Trauma System Special Fund; Surcharges SB1805, SD1 (Vetoed 4/17/08) Genetic Counselors; Licensure SB2040, SD1, HD2 (Act 117) Cancer Surveillance and Research; Data Collection SB2146, SD2, HD1, CD1 Nursing; University of Hawaii; Advisory Board SB2159, HD1 Regulation of Licensed Mental Health Counselors; Sunset; Repealed; Reimbursable Practitioners SB2314, SD1, HD2, CD1 Insurance; Unfair Practices; Exception for Small Insurers SB2396, SD1, HD3, CD1 (Act 100) Mental Health Facilities; Hawaii State Hospital; Forensic Patients SB2459, SD2, HD1, CD1 Remote Dispensing Pharmacy; Medication SB2542, SD2, HD2, CD1 Public Health; Federally Qualified Health Centers; Appropriation SB2768, SD2, HD1, CD1 (Act 115) Maui Memorial Medical Center; Revenue Bonds; Heart, Brain, Vascular Center; Appropriation SB3027, SD2 (Act 5) Osteopathy SB3068, SD1, HD1 (Act 29) Emergency Appropriation for the Adult Mental Health Division SB3069 SD2, HD1, CD1 (Act 99) Defendant Records; Department of Health; State Hospital; Custody

Page 188 List of Measures Passed SB3074, SD1, HD1 (Act 35) Emergency Appropriation for Emergency Medical Services SB3076, HD1, CD1 (Act 78) Epidemiologists SB3185, SD2, HD1 (Act 52) Cervical and Breast Cancer Screening; Transfer of Funds

HOUSE BILL(S) HB7, HD1, SD1 (Vetoed 5/1/08; I-SaveRx Prescription Drug Program Overridden 5/1/08) HB2139, HD2, SD1, CD1 Anatomical Gifts HB2164, HD1, SD1 (Act 84) Cancer Research Special Fund HB2165 (Act 23) Registered Nurses; Licensure HB2224, HD1, SD2 Group Health Insurers; Small Business HB2271, HD1, SD2 (Act 75) Special Purpose Revenue Bonds; Castle Medical Center HB2301, HD1, SD1 (Act 44) Dentistry; Interference with Practice HB2366, SD1, CD1 Organ Donor Registry HB2519, HD2, SD2, CD1 Hawaii Health Corps Program Working Group HB2675, HD2, SD1 Medical Marijuana; Task Force HB2727, HD2, SD1, CD1 Task Force; Health Coverage; Autism Spectrum Disorders HB3106 (Act 21) Acupuncturists; Examination and Licensure HB3150, HD2, SD1 (Act 87) Emergency Planning and Community Right-To-Know Act HB3161, SD3 (Vetoed line item Emergency Appropriation; Hawaii Health Systems appropriation; Act 30) Corporation

SENATE CONCURRENT RESOLUTION(S) SCR153 Divided We Fail Campaign SCR196, SD1 Auditor; Sunrise Review; Health Insurance; Autism SCR208, SD1 Kalaupapa; Acknowledgment and Apology

HOUSE CONCURRENT RESOLUTION(S) HCR20, HD1 ARCH Operators; DHS; DOH HCR21, HD1, SD1 Adult Residential Care Homes; Community Care Foster Family Homes; Department of Health and Department of Human Services Standardized Policy HCR25 Shaken Baby Syndrome; Prevention HCR33, HD1 Ovarian Cancer; Awareness of Common Symptoms HCR51 Study; Cervical Cancer Immunization HCR53 Long-term Care; Waitlisted Patients HCR62, HD1, SD1 Medical Surveillance System; Mandatory Insurance Coverage HCR138, HD2, SD1 Health; Telemedicine

List of Measures Passed Page 189 HCR164 Requesting the Auditor to Study the Impact of Act 226, Session Laws of Hawaii 2007 HCR240, HD1 Designating the Month of September as "Brain Aneurysm Awareness Month" in Hawaii HCR277, HD2 Center for Nursing; Supply

SENATE RESOLUTION(S) SR14, SD1 Study; Cervical Cancer Immunization SR15 Maui Health Initiatives Task Force; Tax Recommendations; Study SR44 Tuberculosis (TB) Screening and Treatment; Public Housing SR68, SD1 Toxic Consumer Products; Phthalates; Bisphenol-A; Child Safety SR83 Divided We Fail Campaign

Human Services and Public Housing

SENATE BILL(S) SB2041, HD1, CD1 Disproportionate Share Hospital Allowance; Appropriation SB2054, SD2, HD2, CD1 (Act 114) Family Court; Custody SB2055, SD2, HD2, CD1 Family Law; Child Custody Evaluators SB2129, SD2, HD1 (Vetoed 5/1/08) Policy Advisory Board for Elder Affairs; Issuance of Policy SB2141, HD1 (Act 34) Public Housing Project; Intoxicating Liquor SB2150, SD2, HD2, CD1 Adult Protective Services SB2245, SD1, HD2, CD1 Motor Vehicles; Unattended Children SB2345, SD1, HD1, CD1 Children; Children of Incarcerated Parents; Guiding Principles SB2395, SD2 (Act 8) Language Access; Definitions; Language Access Advisory Council SB2730, SD2, HD2, CD1 Child Protection Act; Placement Preference SB2830, SD2, HD2, CD1 Joint Legislative Committee on Family Caregiving; Appropriations SB2838, SD2, HD1, CD1 Taxation; Refunds; Electronic Deposit SB2840, SD2, HD1, CD1 Economic Self-Sufficiency Standard SB3051, SD2, HD1, CD1 Criminal History Background Checks; Social Services Programs SB3061, HD1, CD1 (Act 88) Temporary Assistance for Needy Families SB3255, SD2, HD2, CD1 Social Services; Long Term Care Commission; Appropriation

Page 190 List of Measures Passed HOUSE BILL(S) HB523, HD2, SD1, CD1 Foster Children; Guiding Principles HB1356, HD2, SD2, CD1 Former Foster Youth; Higher Education Board Allowance HB2062, HD1, SD2, CD1 Long-Term Care; Medicaid; Transfer of Funds; Federal Approval HB2138, HD1 (Act 6) Caregivers; Caregiver Recognition Day HB2238, HD1, SD1 Housing; Affordability HB2272, HD2, SD2, CD1 Civil Service Law; Qualified Community Rehabilitation Programs HB2346, HD2, SD2, CD1 (Act 81) Endangering Welfare of a Minor; Controlled Substances HB2511, HD1, SD2, CD1 Rental Assistance; Housing HB2520, HD3, SD2, CD1 Family Caregivers; Paid Family Leave; Working Group HB2761, HD1, SD1, CD1 Post-Partum and Interconception Care; QUEST HB2763, HD1, SD1, CD1 Prisoners; Children; Incarcerated Parents; Task Force HB2770, HD1, SD2 (Act 82) Bridge to Hope Program; TANF HB3140, SD2 (Act 43) Emergency Appropriation; Hawaii Public Housing Authority HB3352, HD2, SD2, CD1 Hawaii Disability Rights Center; Audit

SENATE CONCURRENT RESOLUTION(S) SCR8 Shifting the Year of the Family Celebration from 2008 to 2009 SCR37, SD1 LRB Study on State Deaf and Hard of Hearing Facility SCR92, SD1 Public Financial Education and Asset Building Task Force SCR106, SD1 Shelter Admission; Youth Services; Department of Human Services; Study SCR124, SD1, HD1 Department of Human Services; Medicaid; Audit SCR200, SD1 Financial Audit; Hawaii Centers for Independent Living

HOUSE CONCURRENT RESOLUTION(S) HCR93, HD1, SD1 Domestic Violence; Purple Ribbon and Purple Arm Band Campaign HCR111, HD1, SD1 Public Housing Tenants; Transition into Permanent Housing

SENATE RESOLUTION(S) SR3 Shifting the Year of the Family Celebration from 2008 to 2009 SR19, SD1 National Monument for Women SR36, SD1 Domestic Violence; Purple Ribbon and Purple Arm Band Campaign

List of Measures Passed Page 191 SR47, SD2 Condominiums; Emergency Preparedness SR52, SD1 Public Financial Education and Asset Building Task Force SR53, SD2 State Building Code; Assisted Living Facilities SR59, SD1 Task Force; Protocols; First Response; Child Protective Services SR82, SD1 Kukui Gardens; Mayor Wright Homes; Master Plan SR115, SD1 Leahi Hospital; Long-Term Care; Health; Task Force SR116, SD1 William S. Richardson School of Law; Adult Care Homes SR118, SD1 Natural Disaster Preparedness Training for At-Risk Communities

Intergovernmental and Military Affairs

SENATE BILL(S) SB788, SD2 (Act 94) Civil Defense Disaster Relief SB2170, SD1, HD1, CD1 Public Land Liability; Public Beach Parks

HOUSE BILL(S) HB660, SD1, CD1 (Act 107) Jurisdiction of Circuit Courts; Impeachment Proceedings Against County Officers HB2467, HD2 (Act 18) State Fire Code; State Building Code HB2523 (Act 26) Land Use Commission; District Boundary Declassification; County General Plan; Community and Development Plans HB2730, HD1, SD1, CD1 Neighborhood Board Meetings; Legal Requirements

SENATE CONCURRENT RESOLUTION(S) SCR47, SD1 United States Navy; F-14 Tomcat's United States Postal Service First Class Commemorative Stamp

HOUSE CONCURRENT RESOLUTION(S) HCR114, SD1 State Civil Defense's Lualualei's Emergency Shelter for Civilians HCR147, HD1, SD1 Fire Safety; Smoke Detectors in Every Home by 2010 HCR194, SD1 Invasive Plant Species and Excessive Foliage; Waipahu Coastline; U.S. Navy Clean-up

SENATE RESOLUTION(S) SR22, SD1 United States Navy; F-14 Tomcat's United States Postal Service First Class Commemorative Stamp SR43 Federal Financial Assistance For Persons in the United States Under the Compacts of Free Association

Page 192 List of Measures Passed SR119, SD1 Educational Benefits for Hawaii Guard Service Members; Eligibility

Judiciary and Labor

SENATE BILL(S) SB156, SD2, HD2, CD1 Elections; Absentee Voting; Permanent Ballot SB966 Governor; Age Qualification for Election; Constitutional Amendment SB1337, HD1, CD1 Child Support Enforcement; Court Orders; Civil Contempt of Court SB1526, SD2, HD3, CD1 Administrative Director and Deputy Administrative Director of the Courts; Salaries SB1961, SD1, HD1, CD1 Bail Agents; Sureties; Regulation SB2157, SD1, HD2, CD1 Controlled Substances; Pain Patients Bill of Rights SB2212, SD1, HD2, CD1 Human Trafficking; Offense; Penalties SB2218, SD1, HD2, CD1 Electronic Monitoring; Temporary Restraining Orders Conviction SB2258, SD1 (Act 22) Wireless Enhanced 911 Board; Proxy Voting; Composition SB2262, SD1, HD2, CD2 Voluntary Employees' Beneficiary Association Trusts; Sunset Extension; Audits SB2399 (Act 16) Statutory Revision SB2400, SD1, HD1, CD1 (Act 101) Decriminalization of Minor Offenses SB2425, SD1 (Act 17) Arson; Penalty SB2779, HD1 (Vetoed 5/1/08; Governor's Emergency Powers; Suspension of Wages and Overridden 5/1/08; Act 61) Hours on Public Work Projects During Emergency SB2784, SD1, HD1, CD1 (Act 95) Arrest Powers; United States Marshal or Deputy United States Marshal SB2785, SD1, HD1, CD1 (Act 69) District Court Jurisdiction SB2828, SD2, HD2 (Vetoed 5/1/08) Governor's Emergency Powers; Disaster Relief SB2876, HD2, CD1 Unemployment Trust Fund; Reed Act Funds; Hawaii and Maui Appropriations; Workforce Development Plans SB2898, SD1 (Vetoed 4/22/08; Election of President by Popular Vote Overridden 5/1/08; Act 62) SB2961, SD2, HD2, CD1 (Act 67) Claims Against the State; Appropriations SB2977, SD1, HD2, CD1 Child Support Enforcement Agency; Duties SB3004, SD2, HD2 (Act 41) Employees' Retirement System; Furnishing of Information by State and Counties; Refunds of Overpayment of Retirement Benefits SB3005, SD2, HD2 (Act 47) Employees' Retirement System; Membership of Elective Officer

List of Measures Passed Page 193 SB3092, SD1, HD1, CD1 (Act 86) Social Security Number; Bureau of Conveyances; Land Court SB3105, SD1 (Act 20) Public Agency Meetings; On-Site Inspections SB3171, SD2, HD2, CD1 Charitable Trusts and Nonprofit Organizations; Registration; Financial Reports and Disclosure SB3203, SD1, HD1, CD1 Animal Hoarding SB3228, HD1 (Act 49) Retired Patient Employees at Hansen's Disease Facilities; Pension Adjustment

HOUSE BILL(S) HB661, HD1, SD3, CD1 Campaign Spending; Public Funding; Hawaii County Council Elections HB987, HD1, SD2 (Vetoed 3/19/08) Police Officers; Representation by Counsel HB1153, SD1, CD1 Controlled Substances; Forfeiture HB1365, SD2, CD1 (Act 92) Deferred Compensation Plans; Investment Products HB1978, HD1, SD1 (Act 77) Public Order; Urinating or Defecating in Public HB2204, HD1, SD1, CD1 Firearm Owner; Liability; State or Counties HB2253, HD2, SD1, CD1 Intoxicating Liquor HB2386, SD2, CD1 Workers' Compensation; Temporary Total Disability HB2387, HD1, SD2 Workers' Compensation; IME Working Group HB2388, HD1, SD2, CD1 Workers' Compensation; Medical Treatment HB2391, HD1 (Vetoed 4/14/08) Deputy Attorney General; Pro Bono HB2557, HD1, SD1, CD1 Evidence; Journalists and Newscasters; Compellable Testimony HB2656 (Act 11) Campaign Contributions; Reciprocal Beneficiaries HB2696, HD2 (Act 27) Judicial History Center; Board HB2697, HD1, SD1, CD1 Intermediate Appellate Court; Subpoenas; Oaths HB2698, HD3, SD1 Family Court; Court-Appointed Counsel; Guardians Ad Litem HB2699, HD1, SD1 (Act 39) Uniform Probate Code; Omnibus HB2700, HD1, SD2, CD1 (Act 102) Judiciary Supplemental Appropriations Act of 2008 HB2710, HD2, SD2 Re-Employment of Retirees HB2772, HD3, SD1, CD1 Hawaii Anti-Trafficking Task Force HB2929, HD1, SD1 Workers' Compensation; Independent Medical Examinations HB2974, HD2 (Vetoed 4/14/08) Streamlining Union Certification HB3002, HD1, SD1, CD1 Prostitution; Habitual Solicitation of Prostitution HB3040, HD1, SD1, CD1 (Act 80) Indecent Electronic Display to a Child; Electronic Enticement of a Child; Sex Offender Registration; Adam Walsh Act Compliance Working Group

Page 194 List of Measures Passed HB3383, SD1, CD1 Penal Code; Multiple Terms of Imprisonment; Concurrent

SENATE CONCURRENT RESOLUTION(S) SCR67, SD1 Language Access Month; Centralized Language Access Resource Center Feasibility Study SCR222 Conversion of Exempt Employees to Civil Service

HOUSE CONCURRENT RESOLUTION(S) HCR230, HD1 Hawaii Labor History Week HCR231, HD1 Constitutional Convention; LRB Cost Study

SENATE RESOLUTION(S) SR40, SD1 Language Access Month; Centralized Language Access Resource Center Feasibility Study

Public Safety

SENATE BILL(S) SB45, SD1 (Act 10) Paroling Authority Membership; Initial Appointments; Panel Recommendation SB1491, SD1, HD2 (Act 119) Uniform Controlled Substances Act; Controlled Substance Registration Revolving Fund; Depressants; Stimulants; Immediate Precursors; Sales Restriction SB2082, SD2, HD1, CD1 Return of Female Prisoners; Mainland Prisons; Strategic Plan; Establishment; Appropriation SB2083, SD2, HD1, CD1 Application Fee for Interstate Transfer; Interstate Adult Offender Supervision Council Membership; Compact Administrator Term; Appointment of Coordinator Position SB2334, SD2, HD1, CD1 Civil Service Positions; Deputy Sheriff; Academy Graduate Requirement SB2341, SD1, HD1, CD1 Contracts with Out-of-State Detention Facilities; Freedom of Information; Disclosure of Personal Records SB2546, SD2, HD1, CD1 Comprehensive Offender Reentry System Plan; Model Programs; Familial Relationship Research; Offender Training; Out-of-State Prison Transfers; Ex-Offender Reentry Services

HOUSE BILL(S) HB1402, HD2, SD2 (Act 65) Correctional Industries Program; Temporary Exempt Positions HB2009, SD1 (Act 64) Correctional Program Revolving Fund HB2436, HD2, SD2 (Act 38) Display Fireworks; Permits; Fees; Prohibitions; Minors

List of Measures Passed Page 195 SENATE CONCURRENT RESOLUTION(S) SCR102, SD1 Deputy Sheriffs; Compensation SCR125, SD1 Early Parole Eligibility Programs; Study; Report

SENATE RESOLUTION(S) SR56 Sheriff Division; Headquarters Site SR57, SD1 Deputy Sheriffs; Compensation SR64, SD1 Early Parole Eligibility Programs; Study; Report

Tourism and Government Operations

SENATE BILL(S) SB868, SD2 (Vetoed 4/22/08; Overridden Boards and Commissions; Direct Communication with 5/1/08; Act 60) Legislature SB2824, SD2, HD1, CD1 Procurement; State Procurement Policy Board; Annual Audits SB2825, SD1, HD2, CD1 Procurement; Corrective Actions; Administrative Fine SB2826, SD2, HD1, CD1 Procurement; Mandatory Procurement Training SB2827, SD1, HD1, CD1 Procurement; Notice of Non-Selection and Ranking; Protest SB2867, SD2, HD2, CD1 Procurement; False Information in Bids or Solicitations; Sanctions SB3087, SD1, HD1, CD1 Public Works Projects; Contractors; Falsification of Records; Suspension SB3200, SD1, HD1 (Act 45) Employment of Attorneys by State Departments; Judiciary and Legislature Exemption; Procedures

HOUSE BILL(S) HB3386, HD1, SD2, CD1 Attorneys; Department of Taxation; Administrative Rules Officer or Rules Specialist

HOUSE CONCURRENT RESOLUTION(S) HCR245, HD1, SD1 Aloha Tower Development Corporation; Auditor Study HCR358, HD1 Public Procurement; PEG Contracts

SENATE RESOLUTION(S) SR91, SD1 Hawaii Tourism Authority; Water Safety and Recreational Hazards; Visitor Information

Page 196 List of Measures Passed Transportation and International Affairs

SENATE BILL(S) SB2365, SD1, HD1, CD1 Rental Motor Vehicles; Customer Facility Charge; Surcharge Tax SB2816, SD1, HD2 Intra-county Ferry Service; Fuel Tax Exemption SB2900, SD1, HD1 (Act 56) Roads in Limbo; State and County Jurisdiction SB3227, SD2, HD1, CD1 Harbors Modernization Projects; Hana Harbor Transfer SB3240, SD1, HD2 (Act 50) Driver's License; U.S. Armed Forces; Expirations

HOUSE BILL(S) HB357, HD2, SD1, CD1 Pedestrian Safety HB931, HD1, SD1, CD1 Three-Wheel Mopeds; Requirements and Exemptions HB2250, HD1 Hawaii Interisland Airlines Regulation HB2428 (Act 12) State Highways; County Subdivision Ordinances; Exemption HB2531, HD1, SD2, CD1 West Maui Transportation Access Plan HB2847, SD1, CD1 Conditional License Permits; Additional Conditions HB2917, HD2, SD1 (Act 79) Harbors; Permit Portability HB2953, SD1, CD1 (Act 66) Motor Vehicles; Inter-island Ferry HB2954, SD1 Towing Fees; Services HB3197, SD1 (Act 42) Emergency Appropriation; State Highway System HB3249, HD1, SD1, CD1 Bikeways; Parking Prohibition HB3377, SD2, CD1 Driving Under the Influence; Ignition Interlock Systems

SENATE CONCURRENT RESOLUTION(S) SCR52, HD2 Visa Waiver; Taiwan SCR53, SD1, HD1 Free Trade Agreement; Taiwan

HOUSE CONCURRENT RESOLUTION(S) HCR16 Discrimination Against Women; Elimination

SENATE RESOLUTION(S) SR25, SD1 Free Trade Agreement; Korea-United States SR26 Visa Waiver; Taiwan; Visitors; Hawaii Exports SR27, SD1 Free Trade Agreement; Taiwan SR60 Traffic; Roundabouts

List of Measures Passed Page 197 Water and Land

SENATE BILL(S) SB1891, SD1, HD1, CD1 Public Lands; Criminal Penalties SB2198, SD2, HD2, CD2 Land Conservation Incentives Tax Credit SB2423, SD2, HD2, CD1 Acquisition of Turtle Bay Property SB3102, SD2, HD1, CD1 Land Conservation Fund

HOUSE BILL(S) HB2704, HD2, SD1, CD1 Ha‘iku Valley Cultural Preserve Commission HB2872, SD2, CD2 State Park Recreation-Residence Use Leases HB3173, HD1, SD1, CD1 (Act 96) Removal of Grounded Vessels HB3174, HD1, SD1, CD1 (Act 112) Fishing Regulations HB3175, HD1, SD1, CD1 (Act 113) Commercial Marine Fishing Reports HB3177, HD1, SD2, CD1 Penalties for Violations Within the Conservation District HB3178, SD2, CD1 Civil Penalties for Violations on Public Lands

SENATE CONCURRENT RESOLUTION(S) SCR4 Authorizing the Issuance of a Non-Exclusive Easement; Submerged Lands at Lahaina, Maui; Lahaina Yacht Club SCR77, SD1 World Ocean Day SCR210, HD1 Approval of a Land Exchange Between Tiana Partners and the Hawaiian Humane Society

HOUSE CONCURRENT RESOLUTION(S) HCR112 Kanoelehua Industrial Park Leases HCR117, SD1 Hanapepe Salt Ponds Resource Management Plan HCR258 Overgrowth of Vegetation on Kahala Beach HCR347, SD1 Ornamental Reef Fish; South Maui and Kaneohe Bay

SENATE RESOLUTION(S) SR11, SD1 Ornamental Reef Fish; Establishment of Rules and Fish Replenishment Areas SR31, SD1 Voyaging Canoes; Permanent Port and Dock Facilities SR42, SD1 World Ocean Day SR55 Hawaii State Geological Survey SR79, SD1 Kawainui and Hamakua Marsh Complex SR108, SD1 Hawaii Community Development Authority; Kaka‘ako Draft Mauka Area Plan and Mauka Area Rules

Page 198 List of Measures Passed Ways and Means

HOUSE BILL(S) HB118, SD1, CD1 State Bonds; Authorization HB2500, HD1, SD1, CD1 Executive Supplemental Budget HB2605, HD2, SD1 Armed Services; Tax Exemption HB2688, HD1 (Act 1) Legislative Appropriation HB2908, SD1 (Act 36) Audit Recommendations; Implementation Requirements HB3038 (Act 3) Emergency Appropriation; Electricity Costs

List of Measures Passed Page 199

Page 200 List of Measures Passed