BillCam

HOUSE OF REPRESENTATIVES

H.B. NO.

TWENTY-NINTH LEGISLATURE, 2017

STATE OF HAWAII

A BILL FOR AN ACT

relating to an office of administrative hearings.

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

SECTION 1. The legislature finds that in most federal agencies and in many state, territorial, and local jurisdictions, administrative adjudications take place within agencies that combine regulatory, enforcement, prosecutorial, and adjudicatory authority in a single agency. The legislature believes that this combination of functions creates a potential conflict of interest. The legislature also believes that this combination of functions may also compromise the integrity of administrative adjudications and is often perceived as unfair by the litigants opposing the agencies.

The legislature also finds that the conflict of interest inherent in the same agency acting as both prosecutor and judge has led to the establishment of state central hearing agencies, also known as central panels. In central panels, an independent administrative law judge presides over the administrative litigation, and this judge is completely independent of the agency prosecutorial functions. Roughly twenty-nine state and local jurisdictions, including New York City, the City of Chicago, Cook County, Illinois, and the District of Columbia, have addressed this conflict by creating a central hearing agency.

The legislature further finds that the American Bar Association House of Delegates approved a model act creating a state central hearing agency on February 3, 1997, to guide states that wished to create central panels. The American Bar Association enunciated this goal of separation in section 1-2(a) which states that the "Office of Administrative Hearings is created as an independent agency in the Executive Branch of State Government for the purpose of separating the adjudicatory function from the investigatory, prosecutory and policy-making functions of agencies in the Executive Branch."

The American Bar Association model act, as well as the current practices in just about every central panel state, authorizes the central panel to hear all contested cases that arise from a non-exempt agency. Central panel states report that state legislatures continue to expand and confer additional jurisdiction on existing central panels. Likewise, the American Bar Association model act and nearly all current central panel states authorized some or all final decision making authority in the central panel administrative law judges.

The purpose of this Act is to establish a centralized office of administrative hearings in the executive branch of state government.

SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

Office of administrative hearings

§ -1 Scope of chapter. (a) This chapter shall not apply to:

(1) Agencies in the political subdivisions of the State;

(2) An agency of the legislature;

(3) An agency of the judiciary;

(4) The office of the governor; or

(5) The office of the lieutenant governor.

(b) Except as provided in subsection (a), this chapter shall apply to each agency that employs or engages one or more hearings officers, either full or part-time, to adjudicate contested cases unless the agency has been exempted by the governor under subsection (c).

(c) Until one year from the effective date of this chapter, the governor may temporarily exempt an agency from this chapter.

§ -2 Office of administrative hearings established; jurisdiction. (a) The office of administrative hearings is established as an independent agency in the executive branch of state government for the purpose of separating the adjudicatory function from the investigatory, prosecutory, and policy-making functions of agencies in the executive branch. The office shall be placed within the department of accounting and general services for administrative purposes only.

(b) Except as provided herein, the office shall have jurisdiction to resolve all contested cases, unless the head or governing body of the agency from which the case arises hears the case without delegation or assignment to a hearings officer.

§ -3 Chief hearings officer; in general. (a) The office of administrative hearings shall be headed by a chief hearings officer who shall be appointed by the governor subject to the consent of the senate. The chief hearings officer shall be exempt from chapter 76, may be removed only for good cause following notice and an opportunity for an adjudicative hearing, and shall continue in office until a successor is appointed.

(b) The chief hearings officer shall:

(1) Take an oath of office as required by law prior to the commencement of duties;

(2) Devote oneself full-time to the duties of the office and shall not engage in the practice of law;

(3) Be eligible for reappointment;

(4) Receive a salary in the same amount as that provided by law for a circuit court judge;

(5) Be licensed to practice law in the State and admitted to practice for a minimum of five years;

(6) Have the powers and duties specified in this chapter; and

(7) Be subject to the code of conduct for hearings officers.

§ -4 Chief hearings officer; powers and duties. (a) The chief hearings officer shall:

(1) Supervise the office of administrative hearings;

(2) Appoint and remove hearings officers in accordance with this chapter;

(3) Assign hearings officers in any case referred to the office;

(4) Protect and ensure the decisional independence of each hearings officer;

(5) Establish and implement standards and specialized training programs and provide materials for hearings officers;

(6) Provide and coordinate continuing education programs and services for hearings officers, including research, technical assistance, and technical and professional publications;

(7) Compile and disseminate information and advise of changes in the law relative to their duties;

(8) Adopt a code of conduct for hearings officers;

(9) Monitor the quality of state administrative hearings through the provision of training, observation, feedback and, when necessary, discipline of hearings officers who do not meet appropriate standards of conduct and competence, subject to paragraph (4);

(10) Submit an annual report on the activities of the office to the governor and the legislature; and

(11) Adopt rules to implement this chapter pursuant to chapter 91.

(b) The chief hearings officer may:

(1) Serve as a hearings officer in a contested case;

(2) Establish qualifications for the selection of hearings officers;

(3) Furnish hearings officers on a contractual basis to governmental entities other than those required to use their services;

(4) Accept and expend funds, grants, bequests, and services from any public or private source for purposes related to the office;

(5) Enter into agreements and contracts with any public or private agencies or educational institutions; and

(6) Create specialized subject matter divisions within the office.

§ -5 Hearings officers; qualification; tenure; scope of employment. (a) Hearings officers shall be appointed by the chief hearings officer pursuant to section -(4)(a)(2) and shall be subject to chapter 76. The hearings officers of any agency to which this chapter applies shall become employees of the office of administrative hearings. Persons serving as hearings officers as of July 1, 2018, shall be exempt from the qualification requirement set forth in subsection (b)(2).

(b) A hearings officer shall:

(1) Take an oath of office as required by law prior to the commencement of duties;

(2) Be admitted to practice law in the State for a minimum of five years;

(3) Be subject to the requirements and protections of chapter 76;

(4) Be removed, suspended, demoted, or subject to disciplinary or adverse actions including any action that might later influence a reduction in force, only for good cause, after notice and an opportunity to be heard in a hearing conducted pursuant to chapter 91 and a finding of good cause by the merit appeals board established under section 76-47;

(5) Be subject to a reduction in force only in accordance with established, objective civil service or merit system procedures;

(6) Receive a salary in the same amount as that provided by law for a district court judge;

(7) Not take actions inconsistent with the duties and responsibilities of a hearings officer;

(8) Devote full time to the duties of the position and shall not engage in the practice of law unless serving as a part-time hearings officer;

(9) Be subject to administrative supervision by the chief hearings officer; and

(10) Be subject to the code of conduct for hearings officers.

(c) A hearings officer shall not be responsible to, or subject to, the supervision, direction, or influence, whether direct or indirect, of an officer, employee, or agent engaged in the performance of investigatory, prosecutory, or advisory functions for an agency.

§ -6 Cooperation of state government agencies; audits; selection of hearings officers. (a) All agencies of state government shall cooperate with the chief hearings officer in the discharge of the duties of the office.

(b) The office shall be subject to audit by the state auditor under the same rules and rotation by which other state agencies are audited.

(c) Except in arbitration or similar proceedings as provided by law or in this chapter, or in rules adopted under this chapter, an agency may not select or reject a particular hearings officer for a particular proceeding.

§ -7 Designation of additional hearings officers. If the office is unable to assign a hearings officer in response to an agency referral, the chief hearings officer shall designate in writing an individual to serve as a hearings officer in a particular proceeding before the agency; provided that the individual meets the qualifications for a hearings officer as established by the office and is subject to the Code of Judicial Conduct.

§ -8 Powers of hearings officers. A hearings officer shall have the power to:

(1) Issue subpoenas;

(2) Administer oaths;

(3) Control the course of the proceedings;

(4) Engage in, or encourage the use of, alternative dispute resolution methodologies, as appropriate;

(5) Order a party, a party's attorney, or other authorized representative, to pay reasonable expenses, including attorney's fees, incurred by another party as a result of bad faith actions or tactics that are frivolous or solely intended to cause unnecessary delay; and

(6) Perform other necessary and appropriate acts in the performance of duties.

§ -9 Decision-making authority; final; proposed. (a) The assigned hearings officer shall render the final decision and order of the agency, which shall not be subject to agency review, unless otherwise specified in the laws governing the agency.

(b) Except as provided under subsection (a), the hearings officer shall issue a proposed decision, unless the agency authorizes the issuance of a final decision and order, which shall be subject to judicial review, as provided in chapter 91.

(c) If a matter is referred to the office by an agency, the referring agency shall take no further adjudicatory action with respect to the proceeding, except as a party litigant; provided that the office has jurisdiction over the proceeding. Nothing in this subsection shall be construed to prevent an appropriate interlocutory review by the agency nor an appropriate termination or modification of the proceeding by the agency.

§ -10 Proposed decisions and orders. In reviewing a proposed decision or order received from the hearings officer, the agency head or governing body of the agency shall not modify, reverse, or remand the proposed decision of the hearings officer except for specified reasons in accordance with law. Judicial review of agency decisions shall be conducted in accordance with section 91-14."

SECTION 3. Section 6E-10.5, Hawaii Revised Statutes, is amended by amending subsections (d) and (e) to read as follows:

"(d) Any order issued pursuant to this chapter shall become final, unless the person or persons named therein requests in writing, not later than twenty days after notice of violation and order is served, a hearing before the [board.] office of administrative hearings established under chapter . Upon request for a hearing, the [board] office of administrative hearings shall require that the alleged violator or violators appear before the [board] office for a hearing to answer the charges issued, at a time and place specified in the notice or otherwise set by the [board.] office.

Any penalty imposed pursuant to this chapter shall become due and payable twenty days after the notice of penalty is served, unless the person or persons named therein requests in writing a hearing before the [board.] office of administrative hearings. Whenever a hearing is requested on any penalty imposed pursuant to this chapter, the penalty shall become due and payable only upon completion of all review proceedings and the issuance of a final order confirming the penalty in whole or in part.

(e) Any hearing conducted pursuant to this section shall be conducted as a contested case under chapter 91. If, after a hearing held pursuant to this section, the [board] office of administrative hearings finds that a violation or violations has occurred, the [board] office of administrative hearings shall:

(1) Affirm or modify any penalties imposed;

(2) Modify or affirm the order previously issued; or

(3) Issue an appropriate order or orders for the prevention, abatement, or control of the violation or for the taking of such other corrective action as may be appropriate.

Any order issued after a hearing may prescribe timetables for necessary action in preventing, abating, or controlling the violation. If, after a hearing on an order or penalty contained in a notice, the [board] office of administrative hearings finds that no violation has occurred or is occurring, the [board] office of administrative hearings shall rescind the order or penalty."

SECTION 4. Section 11-407, Hawaii Revised Statutes, is amended to read as follows:"

"[]]§11-407[]] Contested case hearing. (a) A contested case hearing shall be conducted pursuant to chapter 91 and any rules adopted by the [commission,] office of administrative hearings established under chapter , except as provided in this section.

(b) If a hearing is held before the [commission,] office of administrative hearings, the [commission] office of administrative hearings shall not be bound by strict rules of evidence when conducting a hearing to determine whether a violation of this part has occurred, and the degree or quantum of proof required shall be a preponderance of the evidence.

(c) The [commission or hearings officer,] office of administrative hearings, if there is no dispute as to the facts involved in a particular matter, may permit the parties to proceed by memoranda of law in lieu of a hearing unless the procedure would unduly burden any party or is otherwise not conducive to the ends of justice.

(d) A record shall be made of the proceeding.

(e) All parties shall be afforded full opportunity to present evidence and argument on all issues involved.

(f) Any person who appears before the [commission] office of administrative hearings shall have all of the rights, privileges, and responsibilities of a witness appearing before the courts of this State. All witnesses summoned before the [commission or hearings officer] office of administrative hearings shall receive reimbursements as paid in like circumstances in the courts of this State. Any person whose name is mentioned during a proceeding before the [commission] office of administrative hearings and who may be adversely affected thereby may appear or file a written statement for incorporation into the record of the proceeding.

[(g) If a hearing is held before a hearings officer, the hearings officer shall render a recommended decision for the commission's consideration. Any party adversely affected by the decision may file written exceptions with the commission within fifteen days after receipt of a copy of the decision by certified mail.

(h)] (g) The [commission,] office of administrative hearings, as expeditiously as possible after the close of the [commission's] office's hearing, shall issue its final determination of violation together with separate findings of fact and conclusions of law regarding whether a violation of this part has been committed."

SECTION 5. Section 26-9, Hawaii Revised Statutes, is amended by amending subsection (f) to read as follows:

"(f) [The director of commerce and consumer affairs may appoint a hearings officer or officers not subject to chapter 76 to hear and decide any case or controversy regarding licenses and the application and enforcement of rules involving any of the boards, commissions, or regulatory programs within the department of commerce and consumer affairs. The hearings officer or officers shall have power to issue subpoenas, administer oaths, hear testimony, find facts, and make conclusions of law and a recommended decision; provided that the conclusions and decisions shall be subject to review and redetermination by the officer, board, or commission which would have heard the case in the first instance in the absence of a hearings officer. The review shall be conducted in accordance with chapter 91.] After July 1, 2019, the director of commerce and consumer affairs may not appoint a hearings officer or officers to hear and decide any case or controversy regarding licenses and the application and enforcement of rules involving any of the boards, commissions, or regulatory programs within the department of commerce and consumer affairs."

SECTION 6. Section 88-82, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

"(a) A member or applicant who is not satisfied with the preliminary decision of the board to grant or deny an application for disability retirement benefits or accidental death benefits based on the certifications and findings of the medical board may file a petition for contested case hearing with the [board] office of administrative hearings established under chapter , within sixty days after receiving written notification of the preliminary decision of the board.

(b) If the member or applicant is the prevailing party in the contested case, and disability retirement or accidental death benefits are awarded to the member or applicant by the [board] office of administrative hearings or court of the appropriate jurisdiction under section 88-75, 88-79, 88-85, 88-284, 88-285, 88-286(c), 88-334, 88-336, or 88-339, the member or applicant shall be paid reasonable attorney's fees together with any costs payable by the system. The attorney's fees and costs shall be subject to the approval of the [board] office of administrative hearings or approval by a court of appropriate jurisdiction after evidence has been provided by the member or applicant regarding the reasonableness of the claimed attorney's fees and costs."

SECTION 7. Section 103D-709, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The several hearings officers appointed [by the director of the department of commerce and consumer affairs pursuant to section 26-9(f)] under chapter shall have jurisdiction to review and determine de novo, any request from any bidder, offeror, contractor, or person aggrieved under section 103D-106, or governmental body aggrieved by a determination of the chief procurement officer, head of a purchasing agency, or a designee of either officer under section 103D-310, 103D-701, or 103D-702."

SECTION 8. Section 104-23, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) A hearing on the written notice of appeal shall be held by a hearings officer appointed by the [director] chief administrative hearings officer in conformance with chapter 91.

Hearings on appeal shall be held within sixty days of the notice of appeal and a decision shall be rendered by the hearings officer within sixty days after the conclusion of the hearing, stating the findings of fact and conclusions of law. The hearings officer may extend the due date for decision for good cause; provided that all parties agree."

SECTION 9. Section 128D-19, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Any person who receives and complies with the terms of any order issued under this chapter, within sixty days after completion of the required order, may petition the director to [appoint a hearings officer for] refer the matter to the office of administrative hearings for a review of the order and for reimbursement from the fund or the State for the reasonable costs of complying with the order, including interest."

SECTION 10. Section 174C-11, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

"(a) [The chairperson may appoint hearings officers, not subject to chapter 76, to] Hearings officer appointed under chapter shall hear and reach a preliminary decision on any matter concerning the implementation or administration of the state water code which the commission may refer to the hearings officers by rule or otherwise.

(b) In assigning matters to hearings officers, the [chairperson] chief hearings officer appointed under chapter shall make the assignments in a manner which ensures that hearings officers will develop familiarity and expertise with given geographic areas."

SECTION 11. Section 269-6, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:

"(e) [The chairperson of the commission may appoint a hearings officer, who shall not be subject to chapter 76, to] A hearings officer subject to chapter shall hear and recommend decisions in any proceeding before it other than a proceeding involving the rates or any other matters covered in the tariffs filed by the public utilities. The hearings officer shall have the power to take testimony, make findings of fact and conclusions of law, and recommend a decision; provided that the findings of fact, the conclusions of law, and the recommended decision shall be reviewed and may be approved by the commission after notice to the parties and an opportunity to be heard. The hearings officer shall have all of the above powers conferred upon the public utilities commission under section 269-10."

SECTION 12. Section 269-15, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) In addition to any other remedy available, the commission or its enforcement officer may issue citations to any person acting in the capacity of or engaging in the business of a public utility within the State, without having a certificate of public convenience and necessity or other authority previously obtained under and in compliance with this chapter or the rules adopted thereunder.

(1) The citation may contain an order of abatement and an assessment of civil penalties as provided in section 269-28(c). All penalties collected under this subsection shall be deposited in the treasury of the State. Service of a citation issued under this subsection shall be made by personal service whenever possible, or by certified mail, restricted delivery, sent to the last known business or residence address of the person cited.

(2) Any person served with a citation under this subsection may submit a written request to the commission for a hearing, within twenty days from the receipt of the citation, with respect to the violations alleged, the scope of the order of abatement and the amount of civil penalties assessed. If the person cited under this subsection timely notifies the commission of the request for a hearing, the commission shall afford an opportunity for a hearing under chapter 91. The hearing shall be conducted by [the commission or the commission may designate] a hearings officer appointed under chapter to hold the hearing.

(3) If the person cited under this subsection does not submit a written request to the commission for a hearing within twenty days from the receipt of the citation, the citation shall be deemed a final order of the commission. The commission may apply to the appropriate court for a judgment to enforce the provisions of any final order, issued by the commission [or designated hearings officer] pursuant to this subsection, including the provisions for abatement and civil penalties imposed. In any proceeding to enforce the provisions of the final order of the commission [or designated hearings officer], the commission need only show that the notice was given, a hearing was held or the time granted for requesting the hearing has run without such a request, and a certified copy of the final order of the commission [or designated hearings officer].

(4) If any party is aggrieved by the decision of the commission [or the designated hearings officer], the party may appeal to the intermediate appellate court, subject to chapter 602, in the manner provided for civil appeals from the circuit court; provided that the operation of an abatement order shall not be stayed on appeal unless specifically ordered by a court of competent jurisdiction after applying the stay criteria enumerated in section 91-14(c). The sanctions and disposition authorized under this subsection shall be separate and in addition to all other remedies either civil or criminal provided in any other applicable statutory provision. The commission may adopt rules under chapter 91 as may be necessary to fully effectuate this subsection."

SECTION 13. Section 269E-3, Hawaii Revised Statutes, is amended to read as follows:

"[[]§269E-3[]] General duties and powers of the commission. The general duties and powers of the commission shall be to:

(1) Establish and administer a one call center that provides advance warning to excavators in this State of the location of subsurface installations in the area of an excavation for the purpose of protecting those installations from damage;

(2) Adopt, amend, or repeal rules pursuant to chapter 91 as it may deem necessary to effectuate this chapter. The rules adopted shall have the force and effect of law and may include but are not limited to rules that:

(A) Forbid acts or practices deemed by the commission to be detrimental to the accomplishment of the purposes of this chapter; and

(B) Require operators and excavators to make reports to the commission containing information that will enable the commission to improve the accomplishment of this chapter;

(3) Enforce this chapter and any rules adopted pursuant thereto;

(4) Issue binding interpretations or declaratory rulings, [and] but not conduct contested case proceedings pursuant to chapter 91; and

(5) Subpoena witnesses and documents, administer oaths, and receive affidavits and oral testimony, including telephonic and electronic communications."

SECTION 14. Section 271-27, Hawaii Revised Statutes, is amended by amending subsection (j) to read as follows:

"(j) In addition to any other remedy available, the commission or its enforcement officer, including a motor vehicle safety officer employed and assigned by the department of transportation pursuant to section 271-38, may issue citations to persons acting in the capacity of or engaging in the business of a motor carrier within this State, without having a certificate of public convenience and necessity or other authority previously obtained under and in compliance with this chapter and rules adopted, or to any shipper or consignee located in this State, or any officer, employee, agent, or representative thereof who engages the services of those persons.

(1) The citation may contain an order of abatement and an assessment of civil penalties as provided in subsection (h). All penalties collected under this subsection shall be deposited in the treasury of the State. Service of a citation issued under this subsection shall be made by personal service whenever possible or by certified mail, restricted delivery, sent to the last known business or residence address of the person cited.

(2) Any person served with a citation under this subsection may submit a written request to the commission for a hearing within twenty days from the receipt of the citation, with respect to the violations alleged, the scope of the order of abatement, and the amount of civil penalties assessed. If the person cited under this subsection notifies the commission of the request for a hearing in time, the commission shall afford the person an opportunity for a hearing under chapter 91. The hearing shall be conducted by [the commission, or the commission may designate] a hearings officer [to hold the hearing.] who is appointed under chapter .

(3) If the person cited under this subsection does not submit a written request to the commission for a hearing in time, the citation shall be deemed a final order of the commission. The commission may apply to the appropriate court for a judgment to enforce the provisions of any final order issued by the commission [or designated hearings officer] pursuant to this subsection, including the provisions for abatement and civil penalties imposed. In any proceeding to enforce the final order, the commission need only produce a certified copy of the final order and show that the notice was given and that a hearing was held or the time granted for requesting the hearing has run without a request.

(4) If any party is aggrieved by the decision of the commission [or the designated hearings officer], the party may appeal, subject to chapter 602, in the manner provided for civil appeals from the circuit courts; provided that the operation of an abatement order shall not be stayed on appeal unless specifically ordered by a court of competent jurisdiction after applying the stay criteria enumerated in section 91-14(c). The sanctions and disposition authorized under this subsection shall be separate and in addition to all other remedies either civil or criminal provided by law. The commission may adopt any rules under chapter 91 that may be necessary to fully effectuate this subsection."

SECTION 15. Section 271-31, Hawaii Revised Statutes, is amended to read as follows:

"§271-31 Hearings. (a) All hearings, investigations, and proceedings shall be governed by this section and by rules of practice and procedure adopted by the [public utilities commission,] office of administrative hearings established under chapter , and in the conduct thereof, the technical rules of evidence need not be applied. No informality in any hearing, investigation, or proceeding, or in the manner of taking testimony shall invalidate any order, decision or rule made, approved, or confirmed by the [commission.] office of administrative hearings.

(b) Complaints may be made, in writing, by the commission on its own motion or by any person or body politic, setting forth any act or thing done, or omitted to be done by any motor carrier, including any rule, regulation, rate, or charge, heretofore established or fixed by or for any motor carrier, in violation or claimed to be in violation, of any law or of any order or rule of the [commission.] office of administrative hearings.

(c) All matters upon which complaint may be founded may be joined in one hearing, and no motion shall be entertained against a complaint for misjoinder of causes of action or grievances or misjoinder or nonjoinder of parties. In any review by the courts of orders or decisions of the [commission] office of administrative hearings the same rule shall apply with regard to the joinder of causes and parties as herein provided. The [commission] office of administrative hearings shall not be required to dismiss any complaint because of the absence of direct damage to the complainant.

(d) Upon the filing of a complaint, the commission shall cause a copy thereof to be served upon the person or motor carrier complained of. Service in all hearings, investigations, and proceedings pending before the [commission] office of administrative hearings may be made upon any person upon whom a summons may be served in any proceeding before the courts of this State, and may be made personally or by mailing in a sealed envelope, registered or certified, with postage prepaid. The [commission] office of administrative hearings shall fix the time when and place where a hearing will be had upon the complaint and shall serve notice thereof, not less than ten days before the time set for the hearing, unless the [commission] office of administrative hearings finds that public necessity requires that the hearing be held at an earlier date.

(e) At the time fixed for any hearing before the [commission] office of administrative hearings or the time to which the hearing has been continued, the complainant and the person complained of, and such persons as the [commission] office of administrative hearings allows to intervene, shall be entitled to be heard and to introduce evidence. The [commission] office of administrative hearings shall issue process to enforce the attendance of all necessary witnesses. After the conclusion of the hearing, the [commission] office of administrative hearings shall make and file its order, containing its decision which shall be based on findings of fact and conclusions of law therein stated. A copy of each order, certified under the seal of the [commission,] office of administrative hearings, shall be served upon the person complained of, or the person's attorney. The order shall, of its own force, take effect and become operative twenty days after the service thereof, except as otherwise provided, and shall continue in force either for a period designated in it or until changed or abrogated by the [commission.] office of administrative hearings. If the [commission] office of administrative hearings believes that an order cannot be complied with within twenty days, it may prescribe such additional time as in its judgment is reasonably necessary to comply with the order, and may on application and for good cause shown, extend the time for compliance fixed in its order.

(f) A complete record of all proceedings and testimony before the [commission] office of administrative hearings on any formal hearing shall be taken down by a reporter appointed by the [commission,] office of administrative hearings, and the parties shall be entitled to be heard in person or by attorney. In case of an action to review an order or decision of the [commission,] office of administrative hearings, a transcript of the testimony, together with all exhibits or copies thereof introduced, and of the pleadings, records, and proceedings in the cause, shall constitute the record of the [commission,] office of administrative hearings, but the party or parties to the proceeding and the [commission] office of administrative hearings may stipulate that designated parts of the record need not be transmitted to the appellate court, as provided by the rules of the court.

(g) Any motor carrier may complain on any of the grounds upon which complaints are allowed to be filed by other parties, and the same procedure shall be adopted and followed as in other cases, except that the complaint may be heard ex parte by the [commission] office of administrative hearings or may be served upon any party designated by the [commission.] office of administrative hearings.

(h) The [commission] office of administrative hearings may at any time upon notice to the motor carrier affected, and after opportunity to be heard as provided in the case of complaints, rescind, alter, or amend any order or decision made by it. Any order rescinding, altering, or amending a prior order or decision shall, when served upon the motor carrier affected, have the same effect as an original order or decision.

(i) In all collateral actions or proceedings, the orders and decisions of the [commission] office of administrative hearings which have become final shall be conclusive."

SECTION 16. Section 271-32, Hawaii Revised Statutes, is amended to read as follows:

"§271-32 Reconsideration and rehearings. (a) After any order or decision has been made by the [public utilities commission,] office of administrative hearings, any party to the proceeding may apply once for reconsideration or a rehearing in respect to any matter determined in the proceeding and specified in the motion for reconsideration or rehearing. The [commission] office of administrative hearings may grant the motion if in its judgment sufficient reason is made to appear.

(b) The motion for reconsideration or a rehearing shall be filed within ten days after the decision and order has been served and shall set forth specifically the ground or grounds on which the applicant considers the decision or order to be unlawful. No person shall in any court urge or rely on any ground not so set forth in the motion. If a motion for reconsideration or rehearing is filed from a final decision and order, the [commission's] office of administrative hearings' order shall be automatically stayed until the [commission] office of administrative hearings renders its final determination on the motion; provided that:

(1) No change in any rate, fare, or charge shall go into effect while a motion for reconsideration or rehearing is pending notwithstanding section 271-20(e);

(2) Any motion for reconsideration or rehearing shall be determined and an order issued by the [commission] office of administrative hearings within forty-five days from the filing date of the motion for reconsideration or rehearing; and

(3) The [commission] office of administrative hearings may set aside the automatic stay in its discretion.

(c) A motion for reconsideration or rehearing shall not excuse any person from complying with and obeying any order or decision, or any requirement of any order or decision of the [commission] office of administrative hearings theretofore made, or operate in any manner to stay or postpone the enforcement thereof, except in such cases and upon such terms as the [commission] office of administrative hearings by order directs.

(d) If, after reconsideration or rehearing the [commission] office of administrative hearings is of the opinion that the original order or decision, or any part thereof, is in any respect unjust or unwarranted, or should be changed, the [commission] office of administrative hearings may abrogate, change, or modify it. The order or decision abrogating, changing, or modifying the original order or decision shall have the same force and effect as an original order or decision, but shall not affect any right or the enforcement of any right arising from or by virtue of the original order or decision unless so ordered by the [commission.] office of administrative hearings.

(e) An appeal shall lie, subject to chapter 602, from every order made by the [commission] office of administrative hearings that is final, or if preliminary, is of the nature defined by section 91-14(a), in the manner provided for civil appeals from the circuit court; provided the order is made after reconsideration or rehearing or is the subject of a motion for reconsideration or rehearing, which the [commission] office of administrative hearings has denied. An appeal shall lie, subject to chapter 602, in the manner provided for civil appeals from the circuit courts, only by a person aggrieved in the contested case hearing provided for in this section."

SECTION 17. Section 271G-19, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:

"(e) In addition to any other remedy available, the commission or its enforcement officer may issue citations to persons acting in the capacity of or engaging in the business of a water carrier within the State, without having a certificate of public convenience and necessity or other authority previously obtained under and in compliance with this chapter and the rules adopted thereunder.

(1) The citation may contain an order of abatement and an assessment of civil penalties of not less than $100, nor more than $500 for each such offense, and, in the case of a continuing violation, not less than $200 nor more than $500 for each day that uncertified activity continues. All penalties collected under this subsection shall be deposited in the treasury of the State. Service of a citation issued under this subsection shall be made by personal service whenever possible, or by certified mail, restricted delivery, sent to the last known business or residence address of the person cited.

(4) If any party is aggrieved by the decision of the commission [or the designated hearings officer], the party may appeal, subject to chapter 602, in the manner provided for civil appeals from the circuit courts; provided that the operation of an abatement order shall not be stayed on appeal unless specifically ordered by a court of competent jurisdiction after applying the stay criteria enumerated in section 91-14(c). The sanctions and disposition authorized under this subsection shall be separate and in addition to all other remedies, either civil or criminal, provided in any other applicable statutory provision. The commission may adopt rules under chapter 91 as may be necessary to fully effectuate this subsection."

SECTION 18. Section 304A-105, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The board of regents shall have management and control of the general affairs, and exclusive jurisdiction over the internal structure, management, and operation of the university. The board may:

(1) Appoint a treasurer and other officers as it deems necessary;

(2) Authorize any officer, elected or appointed by it, to approve and sign on its behalf any voucher or other document that the board may approve and sign;

(3) [Delegate to the president or the president's designee] Refer to the office of administrative hearings established under chapter the authority to render the final decision in contested case proceedings subject to chapter 91, as it deems appropriate;

(4) Purchase or otherwise acquire lands, buildings, appliances, and other property for the purposes of the university; and

(5) Expend any sums of money as, from time to time, may be placed at the disposal of the university from whatever source; provided that notwithstanding any other law to the contrary, all documents regarding expenditures and changes thereto, made by the board shall be disclosed in open meetings for the purpose of public comment; provided further 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.

All lands, buildings, appliances, and other property so purchased or acquired shall be and remain the property of the university to be used in perpetuity for the benefit of the university. The board, in accordance with this section and other law, shall manage the inventory, equipment, surplus property, and expenditures of the university and, subject to chapter 91, may adopt rules, further controlling and regulating the same."

SECTION 19. Section 305J-5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The director shall:

(1) Unless otherwise provided by law, adopt, amend, and repeal rules pursuant to chapter 91 to carry out the purposes of this chapter;

(2) Adopt policies and procedures as necessary, without regard to chapter 91, for reauthorization pursuant to section 305J-10;

(3) Issue declaratory rulings or informal, nonbinding interpretations and conduct contested case proceedings pursuant to chapter 91;

(4) Grant, deny, confirm, forfeit, renew, reinstate, or restore authorizations, including conditional, probationary, or qualified authorizations;

(5) Revoke, suspend, condition, or otherwise limit the authorization of an institution for any violation of this chapter, applicable rules, or the Higher Education Act of 1965, as amended;

(6) Establish requirements for authorization in accordance with this chapter;

(7) Investigate [and conduct hearings regarding] any violation of this chapter, applicable rules, or the Higher Education Act of 1965, as amended[;], and refer hearings to the office of administrative hearings established under chapter ;

(8) Create fact-finding committees, including the appointment of one or more advisory committees, which may assist the department and make recommendations for consideration;

(9) Contract with qualified persons, including investigative and legal staff, who may be exempt from chapter 76, to assist the director in exercising the director's powers and duties;

(10) Subpoena witnesses and documents, administer oaths, and receive affidavits and oral testimony, including communications through electronic media;

(11) Establish the types and amounts of fees that the department may assess in order to carry out the purposes of this chapter;

(12) Establish policies to require authorized institutions to submit to the department, upon request, data that is directly related to student enrollment and degree completion and, if applicable, student financial aid and educator preparation programs, which policies shall include a determination as to whether data received may be disclosed to the public;

(13) Establish policies and procedures for the handling of proprietary information;

(14) Enter into any post-secondary education authorization reciprocity agreement with other post-secondary educational authorizers of schools whose home state is not Hawaii pursuant to section 305J-16; and

(15) Do any and all things necessary or incidental to the exercise of the director's powers and duties."

SECTION 20. Section 342B-3, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) In addition to other specific powers provided in this chapter, the director may [appoint, without regard to chapter 76, hearings officers to] conduct [contested case hearings and] public participation activities, including public hearings and public informational meetings[.] and refer contested case hearings to the office of administrative hearings established under chapter ."

SECTION 21. Section 342B-42, Hawaii Revised Statutes, is amended by amending subsections (d) and (e) to read as follows:

"(d) Any order issued pursuant to this chapter shall become final, unless not later than twenty days after the notice of violation and order is served, the person or persons named therein request in writing a hearing before the [director.] office of administrative hearings established under chapter . Any penalty imposed pursuant to this chapter shall become due and payable twenty days after the notice of penalty is served, unless the person or persons named therein request in writing a hearing before the [director.] office of administrative hearings. Whenever a hearing is requested on any penalty imposed pursuant to this chapter, the penalty shall become due and payable only upon completion of all review proceedings and the issuance of a final order confirming the penalty in whole or in part. Upon request for a hearing, the [director] office of administrative hearings shall require that the alleged violator or violators appear before the [director] office for a hearing at the time and place specified in the notice and answer the charges complained of.

(e) Any hearing conducted pursuant to this section shall be conducted as a contested case under chapter 91. If, after a hearing held pursuant to this section, the [director] office of administrative hearings finds that a violation or violations have occurred, the [director] office of administrative hearings shall affirm or modify any penalties imposed or shall modify or affirm the order previously issued or issue an appropriate order or orders for the prevention, abatement, or control of the violation or emission of air pollutants involved, or for the taking of such other corrective action as may be appropriate. If, after a hearing on an order or penalty contained in a notice, the [director] office of administrative hearings finds that no violation has occurred or is occurring, the [director] office of administrative hearings shall rescind the order or penalty. Any order issued after a hearing may prescribe timetables for necessary action in preventing, abating, or controlling the violation."

SECTION 22. Section 342D-9, Hawaii Revised Statutes, is amended by amending subsections (d) and (e) to read as follows:

"(d) Any order issued under this chapter shall become final, unless not later than twenty days after the notice of order is served, the person or persons named therein request in writing a hearing before the director. Any penalty imposed under this chapter shall become due and payable twenty days after the notice of penalty is served unless the person or persons named therein request in writing a hearing before the [director.] office of administrative hearings established under chapter . Whenever a hearing is requested on any penalty imposed under this chapter, the penalty shall become due and payable only upon completion of all review proceedings and the issuance of a final order confirming the penalty in whole or in part. Upon request for a hearing, the [director] office of administrative hearings shall require that the alleged violator or violators appear before the [director] office for a hearing at a time and place specified in the notice and answer the charges complained of.

(e) Any hearing conducted under this section shall be conducted as a contested case under chapter 91. If after a hearing held pursuant to this section, the [director] office of administrative hearings established under chapter finds that a violation or violations have occurred, the [director] office of administrative hearings shall affirm or modify any penalties imposed or shall modify or affirm the order previously issued or issue an appropriate order or orders for the prevention, abatement, or control of the violation or discharges involved, or for the taking of such other corrective action as may be appropriate. If, after a hearing on an order or penalty contained in a notice, the [director] office of administrative hearings finds that no violation has occurred or is occurring, the [director] office of administrative hearings shall rescind the order or penalty. Any order issued after hearing may prescribe the date or dates by which the violation or violations shall cease and may prescribe timetables for necessary action in preventing, abating, or controlling the violation or discharges."

SECTION 23. Section 342F-7, Hawaii Revised Statutes, is amended by amending subsections (d) and (e) to read as follows:

"(d) Any order issued under this chapter shall become final, unless no later than twenty days after the notice of order is served, the person or persons named therein request in writing a hearing before the [director.] office of administrative hearings established under chapter . Any penalty imposed under this chapter shall become due and payable twenty days after the notice of penalty is served unless the person or persons named therein request in writing a hearing before the [director.] office of administrative hearings. Whenever a hearing is requested on any penalty imposed under this chapter, the penalty shall become due and payable only upon completion of all review proceedings and the issuance of a final order confirming the penalty in whole or in part. Upon request for a hearing, the [director] office of administrative hearings shall require that the alleged violator or violators appear before the [director] office for a hearing at a time and place specified in the notice and answer the charges complained of.

SECTION 24. Section 342G-72, Hawaii Revised Statutes, is amended by amending subsections (c) and (d) to read as follows:

(c) Any order issued under this chapter shall become final, unless not later than twenty days after the notice of order is served, the person or persons named therein request in writing a hearing before the [director.] office of administrative hearings established under chapter . Any penalty imposed under this chapter shall become due and payable twenty days after the notice of penalty is served unless the person or persons named therein request in writing a hearing before the [director.] office of administrative hearings. Whenever a hearing is requested on any penalty imposed under this chapter, the penalty shall become due and payable only upon completion of all review proceedings and the issuance of a final order confirming the penalty in whole or in part. Upon request for a hearing, the [director] office of administrative hearings shall require that the alleged violator or violators appear before the [director] office for a hearing at a time and place specified in the notice and answer the charges complained of.

(1) Affirm or modify any penalties imposed or shall modify or affirm the order previously issued; or

(2) Issue an appropriate order or orders for the prevention, abatement, or control of the violation involved, or for the taking of such other corrective action as may be appropriate.

If, after a hearing on an order or penalty contained in a notice, the [director] office of administrative hearings finds that no violation has occurred or is occurring, the [director] office of administrative hearings shall rescind the order or penalty. Any order issued after hearing may prescribe the date or dates by which the violation or violations shall cease and may prescribe timetables for necessary action in preventing, abating, or controlling the violation."

SECTION 25. Section 342H-7, Hawaii Revised Statutes, is amended by amending subsections (c) and (d) to read as follows:

(c) Any order issued under this chapter shall become final, unless not later than twenty days after the notice of order is served, the person or persons named therein request in writing a hearing before the [director.] office of administrative hearings established under chapter . Any penalty imposed under this chapter shall become due and payable twenty days after the notice of penalty is served unless the person or persons named therein request in writing a hearing before the director. Whenever a hearing is requested on any penalty imposed under this chapter, the penalty shall become due and payable only upon completion of all review proceedings and the issuance of a final order confirming the penalty in whole or in part. Upon request for a hearing, the [director] office of administrative hearings shall require that the alleged violator or violators appear before the [director] office of administrative hearings for a hearing at a time and place specified in the notice and answer the charges complained of.

(d) Any hearing conducted under this section shall be conducted as a contested case under chapter 91. If after a hearing held pursuant to this section, the [director] office of administrative hearings finds that a violation or violations have occurred, the [director] office of administrative hearings shall affirm or modify any penalties imposed or shall modify or affirm the order previously issued or issue an appropriate order or orders for the prevention, abatement, or control of the violation or disposals involved, or for the taking of such other corrective action as may be appropriate. If, after a hearing on an order or penalty contained in a notice, the [director] office of administrative hearings finds that no violation has occurred or is occurring, the [director] office of administrative hearings shall rescind the order or penalty. Any order issued after hearing may prescribe the date or dates by which the violation or violations shall cease and may prescribe timetables for necessary action in preventing, abating, or controlling the violation or disposals."

SECTION 26. Section 342J-7, Hawaii Revised Statutes, is amended by amending subsections (c) and (d) to read as follows:

"(c) Any order issued under this chapter shall become final, unless not later than twenty days after the notice of order is served, the person or persons named therein request in writing a hearing before the [director.] office of administrative hearings established under chapter . Any penalty imposed under this chapter shall become due and payable twenty days after the notice of penalty is served unless the person or persons named therein request in writing a hearing before the [director.] office of administrative hearings. Whenever a hearing is requested on any penalty imposed under this chapter, the penalty shall become due and payable only upon completion of all review proceedings and the issuance of a final order confirming the penalty in whole or in part. Upon request for a hearing, the [director] office of administrative hearings shall require that the alleged violator or violators appear before the [director] office for a hearing at a time and place specified in the notice and answer the charges complained of.

SECTION 27. Section 342L-8, Hawaii Revised Statutes, is amended by amending subsections (c) and (d) to read as follows:

"(c) Any order issued under this chapter shall become final, unless not later than twenty days after the order is served, the person or persons named therein request in writing a hearing before the [director.] office of administrative hearings established under chapter . Any penalty imposed under this chapter shall become due and payable twenty days after the order is served unless the person or persons named therein request in writing a hearing before the [director.] office of administrative hearings. Whenever a hearing is requested on any penalty imposed under this chapter, the penalty shall become due and payable only upon completion of all review proceedings and the issuance of a final order confirming the penalty in whole or in part. Upon request for a hearing, the [director] office of administrative hearings shall require that the alleged violator or violators appear before the [director] office for a hearing at a time and place specified in the notice and answer the charges complained of.

(d) Any hearing conducted under this section shall be conducted as a contested case under chapter 91. If, after a hearing held pursuant to this section, the [director] office of administrative hearings finds that one or more violations have occurred or are occurring, the [director] office of administrative hearings shall affirm or modify any penalties imposed or shall modify or affirm the order previously issued or issue an appropriate order or orders for the prevention, abatement, or control of the violation or release involved, or for the taking of such other corrective action as may be appropriate. If, after a hearing on an order, the [director] office of administrative hearings finds that no violation has occurred or is occurring, the [director] office of administrative hearings shall rescind the order. Any order issued after a hearing may prescribe the date or dates by which the violation or violations shall cease and may prescribe timetables for necessary action in preventing, abating, or controlling the violation or release."

SECTION 28. Section 342P-5, Hawaii Revised Statutes, is amended by amending subsections (d) and (e) to read as follows:

"(d) Any order issued under this chapter shall become final, unless, not later than twenty days after the notice of order is served, the person or persons named therein request in writing a hearing before the [director.] office of administrative hearings established under chapter . Any penalty imposed under this chapter shall become due and payable twenty days after the notice of penalty is served, unless the person or persons named therein request in writing a hearing before the [director.] office of administrative hearings. Whenever a hearing is requested on any penalty imposed under this chapter, the penalty shall become due and payable only upon completion of all review proceedings and the issuance of a final order confirming the penalty in whole or in part. Upon request for a hearing, the [director] office of administrative hearings shall require the alleged violator or violators to appear before the [director] office for a hearing at a time and place specified in the notice to answer the charges complained of.

(e) Any hearing conducted under this section shall be conducted as a contested case in accordance with chapter 91. If, after a hearing held pursuant to this section, the [director] office of administrative hearings finds that a violation or violations have occurred, the [director] office of administrative hearings shall affirm or modify any penalties imposed, modify or affirm the order previously issued, or issue an appropriate order or orders for the prevention, abatement, or control of the violation or discharges involved or the taking of such other corrective action as may be appropriate. If, after a hearing on an order or penalty contained in a notice, the [director] office of administrative hearings finds that no violation has occurred or is occurring, the [director] office of administrative hearings shall rescind the order or penalty. Any order issued after a hearing may prescribe the date or dates by which the violation or violations shall cease and may prescribe timetables for necessary action in preventing, abating, or controlling the violation or discharges."

SECTION 29. Section 346-59.7, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) As used in this section, the term "administrative appeals officer" means the [director's designated subordinate] hearings officer from the office of administrative hearings established under chapter , appointed to contested case hearings pursuant to chapter 91, and this chapter."

SECTION 30. Section 356D-93, Hawaii Revised Statutes, is amended by amending subsections (b) and (c) to read as follows:

"(b) Hearings shall be conducted by [an eviction board appointed by the authority. The eviction board shall consist of not fewer than one person, and no more than three persons, of which one member shall be a tenant.] the office of administrative hearings established under chapter . If feasible, the [eviction board] office of administrative hearings may conduct hearings using video conferencing technology; provided that these hearings shall be conducted pursuant to chapter 91. The findings, conclusions, decision, and order of the [eviction board] office of administrative hearings shall be final unless an appeal is taken as hereinafter provided.

(c) The [eviction board] office of administrative hearings shall have the same powers respecting administering oaths, compelling the attendance of witnesses and the production of documentary evidence, and examining witnesses, as are possessed by circuit courts. In case of disobedience by any person of any order of the [eviction board,] office of administrative hearings, or of any subpoena issued by the [eviction board,] office of administrative hearings, or the refusal of any witness to testify to any matter regarding which the witness may lawfully be questioned, any circuit judge, on application by the [eviction board,] office of administrative hearings, shall compel obedience as in the case of disobedience of the requirements of a subpoena issued by a circuit court, or a refusal to testify therein."

SECTION 31. Section 368-14, Hawaii Revised Statutes, is amended to read as follows:

"§368-14 [Commission hearings.] Hearings. (a) If, fifteen days after service of the final conciliation demand, the commission finds that conciliation will not resolve the complaint, the commission shall [appoint a hearings examiner and] refer the matter to the office of administrative hearings established under chapter to schedule a contested case hearing that shall be held in accordance with chapter 91. The case in support of the complaint shall be presented at the hearing by counsel provided by the commission. Following the completion of the contested case hearing, the [hearings examiner] office of administrative hearings shall issue a proposed decision containing a statement of reasons including a determination of each issue of fact or law necessary to the proposed decision which shall be served upon the parties. Any party adversely affected by the proposed decision may file exceptions and present argument to the [commission] office of administrative hearings which shall consider the whole record or such portions thereof as may be cited by the parties. If the [commission] office of administrative hearings finds that unlawful discrimination has occurred, the [commission] office of administrative hearings shall issue a decision and order in accordance with chapter 91 requiring the respondent to cease the unlawful practice and to take appropriate remedial action. If there is no finding of discrimination, the [commission] office of administrative hearings shall issue an order dismissing the case.

(b) At any time after a complaint is filed, the commission may file a petition in the circuit court in the circuit in which the subject of the complaint occurred, or in the circuit in which a respondent resides or transacts business, seeking appropriate temporary relief against the respondent, pending final determination of proceedings under this chapter, including an order or decree restraining the respondent from doing or procuring any act tending to render ineffectual any order the commission may enter with respect to the complaint. The court may grant the temporary relief or restraining order as it deems just and proper, but no relief or order extending beyond five days shall be granted except by consent of the respondent or after hearing upon notice to the respondent and a finding by the court that there is reasonable cause to believe that the respondent has engaged in a discriminatory practice.

If a complaint is dismissed by final order of the [commission] office of administrative hearings or a court after a court has granted temporary relief or a restraining order under this subsection, the respondent is entitled to recover from the State damages and costs, not to exceed a total of $500, sustained by reason of the temporary relief or restraining order in an action in the court that granted the temporary relief or restraining order."

SECTION 32. Section 373-14.3, Hawaii Revised Statutes, is amended to read as follows:

"§373-14.3 Hearings. In all proceedings, the director or hearings officer [duly appointed by the director] appointed pursuant to chapter shall have the same powers respecting administering oaths, compelling the attendance of witnesses, producing documentary evidence, and examining witnesses as are possessed by circuit courts. In case of disobedience by any person of any order or subpoena issued by the director or hearings officer, or the refusal of any witness to testify to any matter regarding which the witness may be questioned lawfully, any circuit judge, on application by the director or hearings officer, shall compel obedience as in the case of disobedience of the requirements of a subpoena issued by a circuit court, or a refusal to testify therein."

SECTION 33. Section 398-24, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Upon appeal by the employer, the order issued by the department shall be subject to a de novo review by a hearings officer appointed [by the director.] pursuant to chapter ."

SECTION 34. Section 431:14G-107, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"(d)(1) Any enrollee of a managed care plan or organization that purchases health insurance from a managed care plan aggrieved with respect to any filing that is in effect may make a written demand to the [commissioner] office of administrative hearings established under chapter for a hearing thereon; provided that the managed care plan that made the filing shall not be authorized to proceed under this subsection;

(2) The demand shall specify the grounds to be relied upon by the aggrieved enrollee or organization and the demand shall show that the enrollee or organization has a specific economic interest affected by the filing;

(3) If the [commissioner] office of administrative hearings finds that:

(A) The demand is made in good faith;

(B) The applicant would be so aggrieved if the enrollee's or organization's grounds are established; and

the [commissioner,] office of administrative hearings, within thirty days after receipt of the demand, shall hold a hearing. The hearing shall be held upon not less than ten days' written notice to the aggrieved party and to every managed care plan that made the filing. The aggrieved party shall bear the burden of proving that the filing fails to meet the standards set forth in section 431:14G-103; and

(4) If, after the hearing, the [commissioner] office of administrative hearings finds that the filing does not meet the requirements of this article, the [commissioner] office of administrative hearings shall issue an order specifying in what respects the filing fails to meet the requirements of this article, and stating when, within a reasonable period, the filing shall be deemed no longer effective. Copies of the order shall be sent to the applicant and to every affected managed care plan. The order shall not affect any contract or policy made or issued prior to the expiration of the period set forth in the order."

SECTION 35. Section 436B-7, Hawaii Revised Statutes, is amended to read as follows:

"§436B-7 Powers and duties of licensing authority. In addition to any other powers and duties authorized by law, each licensing authority may:

(1) Adopt, amend, or repeal rules, issue declaratory rulings or informal nonbinding interpretations, [and] but not conduct contested case proceedings pursuant to chapter 91;

(2) Grant, deny, convert, forfeit, renew, reinstate, or restore licenses, including the issuance of conditional licenses;

(3) Revoke, suspend, or otherwise limit the license of any licensee for any violation of the provisions in this chapter, the licensing laws, or any rule or order of the licensing authority;

(4) Develop requirements for licensure through the applicable licensing law or rules;

(5) Investigate [and conduct hearings regarding] any violation of this chapter, the licensing laws, and any rule or order of the licensing authority;

(6) Monitor the scope of practice of the profession or vocation regulated by the licensing authority;

(7) Prepare, administer, and grade examinations; provided that the licensing authority may contract with a testing agency to provide those services, and the licensing authority may also reserve the right to modify, amend, change, or regrade the examination;

(8) Create fact-finding committees which may make recommendations to the licensing authority for its deliberations;

(9) Contract with qualified persons including investigators who may be exempt from chapter 76 and who shall assist the licensing authority in exercising its powers and duties; and

(10) Subpoena witnesses and documents, administer oaths, and receive affidavits and oral testimony, including telephonic communications, and do any and all things necessary or incidental to the exercise of the licensing authority's power and duties, but not including the authority to conduct contested case proceedings under chapter 91."

SECTION 36. Section 436B-25, Hawaii Revised Statutes, is amended to read as follows:

"[[]§436B-25[]] Judicial review by circuit court. Any person aggrieved by a final decision and order of the [board] office of administrative hearings in a "contested case", as defined in chapter 91, is entitled to judicial review thereof by the circuit court of the circuit in which the board making the final decision and order has jurisdiction. The review shall be as provided by chapter 91."

SECTION 37. Section 436B-26.5, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (f) to read:

"(f) If the person cited under this section timely notifies the director of the request for a hearing, the director shall afford an opportunity for a hearing under chapter 91. The hearing shall be conducted by [the director or the director may designate] a hearings officer [to hold the hearing.] appointed pursuant to chapter . The [director or any] hearings officer [designated by the director] shall have the power to issue subpoenas, administer oaths, hear testimony, find facts, make conclusions of law, and issue a final order."

2. By amending subsections (h) and (i) to read:

"(h) The director may apply to the appropriate court for a judgment to enforce the provisions of any final order issued by the [director or designated] hearings officer pursuant to this section, including the provision for abatement and civil penalties imposed.

(i) If any party is aggrieved by the decision of the [director or the designated] hearings officer, the party may appeal in the manner provided in chapter 91 to the circuit court of the circuit in which the party resides or has the party's principal place of business or in which the action in question occurred. The operation of an abatement order shall not be stayed on appeal unless specifically ordered by a court of competent jurisdiction after applying the stay criteria enumerated in section 91-14(c)."

SECTION 38. Section 437-51, Hawaii Revised Statutes, is amended to read as follows:

"[[]§437-51[]] Dispute resolution. (a) In any dispute among a manufacturer, distributor, or dealer on matters governed by this part, the manufacturer, distributor, or dealer may seek a hearing from the [department of commerce and consumer affairs.] office of administrative hearings established under chapter .

(b) The office of administrative hearings [of the department of commerce and consumer affairs] shall accept no more than thirty requests for hearing per fiscal year under this section. The office of administrative hearings may reject a request for a hearing if in the opinion of the hearings officer the matter presented does not involve the interpretation or enforcement of the provisions of this chapter. [The director of commerce and consumer affairs shall appoint a hearings officer pursuant to section 26-9(f) who shall have jurisdiction to review any request for hearing filed under this section.] The hearings officer shall have the power to issue subpoenas, administer oaths, hear testimony, find facts, make conclusions of law, and issue written decisions that shall be final and conclusive, unless a party adversely affected by the decision files an appeal in the circuit court under section 91-14. All information so provided in and for the hearing shall be sealed and not subject to public review or access. The information shall also remain confidential and not subject to public access or review on appeal pursuant to section 91-14.

(c) The party requesting the hearing shall file a petition with the [department of commerce and consumer affairs] office of administrative hearings specifying the specific provisions of this chapter that are in issue; the interpretation or enforcement sought; the legal and factual basis for the interpretation or enforcement sought; and the remedy or remedies sought. The party requesting a hearing under this section shall provide a copy of the petition to the board at the time the petition is filed. Each adverse party shall file a response with the [department of commerce and consumer affairs.] office of administrative hearings.

(d) Hearings under this section shall be conducted pursuant to chapter 91 [and rules adopted by the department of commerce and consumer affairs]. The burden of proof, including the burden of producing the evidence and the burden of persuasion, shall be upon the party initiating the proceeding, unless otherwise specified in this chapter. The standard of proof required shall be by a preponderance of the evidence.

(e) The hearings officer shall issue written findings of fact, conclusions of law, and an order as expeditiously as practicable after the hearing has been concluded.

(f) The prevailing party in any proceeding brought under this section shall provide a copy of the hearings officer's written findings of fact, conclusions of law, and order to the board within ten days of receipt of the written findings of fact, conclusions of law, and order.

(g) Each party to the hearing shall bear the party's own costs, including attorney's fees. Both parties shall share equally in the cost of the hearing, including any allocable departmental overhead attributable to the hearing.

(h) Any party to a proceeding brought under this section who is aggrieved by a final decision of a hearings officer may apply for judicial review of that decision pursuant to section 91-14; provided that any party seeking judicial review pursuant to section 91-14 shall be responsible for the costs of preparing the record on appeal, including the cost of preparing the transcript of the hearing. Any party aggrieved by a final decision of a hearings officer who applies for judicial review under this section shall provide a copy of the party's application for judicial review to the board within ten days of filing the application for judicial review.

[(i) The department of commerce and consumer affairs may adopt rules, pursuant to chapter 91, to effectuate the purpose of this section and to implement its provisions, including fees to recover the cost of hearings.]"

SECTION 39. Section 438-5, Hawaii Revised Statutes, is amended to read as follows:

"§438-5 Powers and duties of the board. (a) In addition to any other powers and duties authorized by law, the board may give examinations for the issuance of licenses to practice barbering and cosmetology; issue apprentice permits or temporary permits; grant, revoke, or suspend licenses, apprentice permits, or temporary permits; and establish, subject to chapter 91 and with the approval of the governor and the director, rules governing the practice of barbering and cosmetology that shall have the force and effect of law.

(b) The board may require the attendance of witnesses and the production of books, records, and papers as it or any person involved may desire at any hearing of any matter which the board has authority to investigate, and for that purpose may require the executive secretary to issue a subpoena for any witness or a subpoena duces tecum to compel the production of any books, records, or papers directed to the sheriff or chief of police of the county where the witness resides or is found which shall be served and returned in the same manner as a subpoena in a criminal case. Fees and mileage shall be paid from the funds in the state treasury for the use of the board in the same manner as other expenses of the board.

[(c) Any investigation, inquiry, or hearing which the board is empowered by law to hold or undertake may be held or undertaken by or before any member or members of the board or an appointed hearings officer and the finding or order of that member, members, or hearings officer shall be deemed to be the finding or order of the board when approved and confirmed by it.

(d)] (c) The board, as prescribed by rules, may recognize the equivalency of barber and hairdresser practices to allow training of an apprentice by either licensee in order for the apprentice to fulfill training requirements."

SECTION 40. Section 440-12, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) Any license to act as a physician, referee, judge, matchmaker, manager, timekeeper, second, or professional boxer may be suspended or revoked, or the person otherwise disciplined by the [commission] office of administrative hearings established under chapter , after a contested case hearing held in accordance with chapter 91."

SECTION 41. Section 440E-8, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) Any license to act as a physician, referee, judge, manager, second, or mixed martial arts contestant may be suspended or revoked, or the person otherwise disciplined by the [director] office of administrative hearings that is established under chapter , after a contested case hearing held in accordance with chapter 91."

SECTION 42. Section 444-4, Hawaii Revised Statutes, is amended to read as follows:

"§444-4 Powers and duties of board. In addition to any other powers and duties authorized by law, the board shall:

(1) Grant licenses, including conditional licenses, to contractors pursuant to this chapter and rules;

(2) Adopt, amend, or repeal such rules as the board may deem proper fully to effectuate this chapter and carry out the purpose thereof, which is the protection of the general public. All rules shall be approved by the governor and the director, and when adopted pursuant to chapter 91, shall have the force and effect of law. The rules may forbid acts or practices deemed by the board to be detrimental to the accomplishment of the purpose of this chapter. The rules may require contractors to make reports to the board containing any items of information as will better enable the board to enforce this chapter and rules, or as will better enable the board from time to time to amend the rules more fully to effectuate the purposes of this chapter. The rules may require contractors to furnish reports to owners containing any matters of information as the board deems necessary to promote the purpose of this chapter. The enumeration of specific matters which may properly be made the subject of rules shall not be construed to limit the board's general power to make all rules necessary fully to effectuate the purpose of this chapter;

(3) Adopt rules pursuant to chapter 91 necessary to implement the provisions of this chapter relating to CFCs, including, but not limited to, procedures for the disposal of air conditioning units utilizing CFCs that include mandatory recovery and recycling of CFCs;

(4) Enforce this chapter and rules adopted pursuant thereto;

(5) Suspend or revoke any license for any cause prescribed by this chapter, or for any violation of the rules, and refuse to grant, renew, restore, or reinstate any license for any cause which would be grounds for revocation or suspension of a license;

(6) Publish and distribute pamphlets and circulars containing any information as the board deems proper to further the accomplishment of the purpose of this chapter;

(7) Contract for professional testing services to prepare, administer, and grade the examinations for applicants as may be required for the purposes of this chapter. The board shall determine the scope and length of the examinations, whether the examinations shall be oral, written, or both, and the score that shall be deemed a passing score;

(8) Order summary suspension of a license; provided that summary suspensions may be delegated in accordance with section 436B-23;

(9) Issue informal nonbinding interpretations or declaratory rulings, [and] but not conduct contested case proceedings pursuant to chapter 91; and

(10) Subpoena witnesses and documents, administer oaths, receive affidavits and oral testimony, including telephonic communications."

SECTION 43. Section 444-10.5, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (e) to read:

"(e) If the person cited under this section timely notifies the director of the request for a hearing, the director shall [afford an opportunity] refer the matter to the office of administrative hearings established under chapter for a hearing under chapter 91. The hearing shall be conducted by [the director or the director may designate] a hearings officer [to hold the hearing.] appointed pursuant to chapter . The [director or any] hearings officer [designated by the director] shall have the power to issue subpoenas, administer oaths, hear testimony, find facts, and make conclusions of law and issue a final order."

2. By amending subsections (g) and (h) to read:

"(g) The director may apply to the appropriate court for a judgment to enforce the provisions of any final order issued by the [director or designated] hearings officer pursuant to this section, including the provisions to cease and desist and for civil penalties imposed. In any proceeding to enforce the provisions of the final order of the [director or designated] hearings officer, the director need only show that notice was given, a hearing was held or the time granted for requesting a hearing has run without such a request, and a certified copy of the final order of the [director or designated] hearings officer.

(h) If any party is aggrieved by the decision of the [director or the designated] hearings officer, the party may appeal in the manner provided in chapter 91 to the circuit court of the circuit in which the party resides or has the party's principal place of business or in which the action in question occurred; provided that the operation of a cease and desist order shall not be stayed on appeal unless specifically ordered by a court of competent jurisdiction after applying the stay criteria enumerated in section 91-14(c)."

SECTION 44. Section 444-23.5, Hawaii Revised Statutes, is amended by amending subsections (i), (j), and (k) to read as follows:

"(i) Hearings shall be subject to chapter 91 and shall be conducted by [the director or] a hearings officer [designated by the director.] appointed pursuant to chapter . The [director or designated] hearings officer may issue subpoenas, administer oaths, hear testimony, find facts, make conclusions of law, and issue a final order of forfeiture. The department shall have the burden to show by clear and convincing evidence that the property is subject to forfeiture. In determining whether the property is subject to forfeiture, the [director or] hearings officer shall consider evidence of ownership, the description of the property, and any other relevant evidence.

(j) Any person aggrieved by the decision of the [director or designated] hearings officer may appeal the decision in the manner provided in chapter 91, to the circuit court of the circuit in which:

(1) The person resides;

(2) The person's principal place of business is located; or

(3) The activity in question occurred.

(k) The director may file an action in the circuit court for a judgment to enforce any final order issued by the [director or designated] hearings officer pursuant to this section. A judgment enforcing the final order shall issue upon a showing by the director either that notice was given and a hearing was held, or, that the time granted for requesting a hearing has run without the timely filing of a request."

SECTION 45. Section 449-1.9, Hawaii Revised Statutes, is amended to read as follows:

"§449-1.9 Powers of commissioner. In addition to any other powers provided by law, the commissioner may:

(1) Administer and enforce the provisions and requirements of this chapter;

(2) Adopt, amend, or repeal rules or declaratory rulings pursuant to chapter 91 to effectuate the purposes of this chapter;

(3) Issue informal nonbinding interpretations to effectuate the purposes of this chapter;

(4) Investigate [and conduct hearings regarding] any violation of this chapter or any rule or order of the commissioner;

(5) Contract with or employ qualified persons, including investigators, examiners, or auditors who shall be exempt from chapter 76 and who shall assist the commissioner in exercising the commissioner's powers and duties;

(6) Deposit all fees, fines, and charges collected by the commissioner under this chapter into the compliance resolution fund established pursuant to section 26‑9(o);

(7) Process and investigate complaints, subpoena witnesses and documents, administer oaths, and receive affidavits and oral testimony, including through electronic means, [and] but not conduct contested case proceedings;

(8) Report any violation of this chapter or violation of federal or state law to the United States Commissioner of Housing and Urban Development or any other federal agency having jurisdiction over the licensee; and

(9) Enter into agreements or contracts with the operators of NMLS or other entities designated by NMLS to collect and maintain records and process transaction fees or other fees related to licensees or other persons subject to this chapter; provided that:

(A) For the purpose and the extent necessary to use NMLS, the commissioner may:

(i) Require all escrow depositories to register with NMLS; and

(ii) Waive or modify, in whole or in part, by rule or order, any or all of the requirements of this chapter and establish new requirements as reasonably necessary to participate in NMLS; and

(B) In addition to other uses of NMLS, the commissioner may use NMLS as an agent for:

(i) Requesting information from and distributing information to the United States Department of Justice or any other governmental agency; and

(ii) Requesting and distributing information to and from any source directed by the commissioner."

SECTION 46. Section 454F-4.8, Hawaii Revised Statutes, is amended to read as follows:

"[[]§454F-4.8[]] Decision denying application subject to administrative hearing. (a) Within fifteen days following receipt of a decision denying an application, an applicant may petition the commissioner for an administrative hearing that shall be held in accordance with chapter 91 [and the rules of the department of commerce and consumer affairs]. If a petition for an administrative hearing is not filed within the time specified, the commissioner's decision denying the application shall become a final decision and order denying the application.

(b) Upon the receipt of a petition for an administrative hearing, the commissioner shall [assign] refer the petition to [a hearings officer] the office of administrative hearings established under chapter for further proceedings [pursuant to the rules of the department of commerce and consumer affairs]. The commissioner shall issue a written final decision and order, following the [hearings officer's] transmittal by the office of administrative hearings to the commissioner of the entire record together with the recommended decision, any timely filed exceptions, and any timely filed statements in support of the recommended decision."

SECTION 47. Section 454F-18, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) In addition to any other powers provided by law, the commissioner shall have the authority to:

(1) Administer and enforce the provisions and requirements of this chapter;

(2) Adopt, amend, or repeal rules and issue declaratory rulings or informal nonbinding interpretations;

(3) Develop requirements for licensure through rules, including establishing the content of the written tests required under section 454F-7;

(4) Investigate [and conduct hearings regarding] any violation of this chapter or any rule or order of, or agreement with, the commissioner;

(5) Create fact-finding committees that may make recommendations to the commissioner for the commissioner's deliberations;

(6) Require an applicant or any of its control persons, officers, directors, employees, partners, members, managers, and agents to disclose their relevant criminal history and request a criminal history record check in accordance with chapter 846;

(7) Contract with or employ qualified persons, including investigators, examiners, or auditors who may be exempt from chapter 76 and who shall assist the commissioner in exercising the commissioner's powers and duties;

(8) Require that all fees, fines, and charges collected by the commissioner under this chapter, except for fees designated for deposit into the mortgage loan recovery fund pursuant to section 454F-41, be deposited into the compliance resolution fund established pursuant to section 26-9(o);

(9) Process and investigate complaints, subpoena witnesses and documents, administer oaths, and receive affidavits and oral testimony, including telephonic communications, and do any and all things necessary or incidental to the exercise of the commissioner's power and duties, but not including the authority to conduct contested case proceedings under chapter 91; and

(10) Require a licensee to comply with any rule, guidance, guideline, statement, supervisory policy or any similar proclamation issued or adopted by the Federal Deposit Insurance Corporation to the same extent and in the same manner as a bank chartered by the State or in the alternative, any policy position of the Conference of State Bank Supervisors."

SECTION 48. Section 454M-8, Hawaii Revised Statutes, is amended to read as follows:

"§454M-8 Powers of commissioner. In addition to any other acts or conditions provided by law, the commissioner may:

(1) Adopt, amend, or repeal rules, issue declaratory rulings or informal nonbinding interpretations, and investigate and act upon written consumer complaints;

(2) Grant, deny, forfeit, renew, reinstate, or restore the license of any mortgage servicer;

(3) Revoke, suspend, or otherwise limit the license of any mortgage servicer for any violation of the provisions in this chapter, or any rule or order of, or agreement with the commissioner;

(4) Report any violation of this chapter or violation of federal or state law to the Consumer Financial Protection Bureau or other federal agency having jurisdiction over the licensee;

(5) Investigate and conduct hearings regarding any violation of this chapter, or any rule or order of or agreement with the commissioner; and

(6) Do any and all things necessary or incidental to the exercise of the commissioner's power and duties, but not including the authority to conduct contested case proceedings under chapter 91."

SECTION 49. Section 576E-1, Hawaii Revised Statutes, is amended by amending the definitions of "administrative order", "hearings officer", and "office" to read as follows:

""Administrative order" means the order resulting from an administrative adjudication by a hearings officer [or the attorney general, through the agency,] of the final disposition of a matter before the agency.

"Hearings officer" means a public official appointed [and commissioned pursuant to section 576E-10.] pursuant to chapter .

"Office" means the office of [child support hearings established pursuant to section 576E-10.] administrative hearings established pursuant to section -2."

SECTION 50. Section 576E-7, Hawaii Revised Statutes, is amended to read as follows:

"§576E-7 Failure to request hearing; effect. If the parties fail to request a hearing pursuant to section 576E-6, the [agency or] a hearings officer shall sign the proposed order as the final order in the action."

SECTION 51. Section 576E-9, Hawaii Revised Statutes, is amended to read as follows:

"§576E-9 Hearings in contested cases. Hearings in contested cases shall be conducted in accordance with this chapter, chapter , and when otherwise applicable, chapter 91, and shall be presided over by a hearings officer appointed [and commissioned by the attorney general pursuant to section 576E-10. The attorney general may adopt such administrative rules pursuant to chapter 91, as may be necessary to carry out this section.] pursuant to chapter . In any hearing conducted under this section, all parties shall have the right to confront and cross-examine witnesses, to present witnesses and evidence, to be represented by counsel or other person, and to be notified of these rights in writing. Hearings may be conducted by telephone or other electronic telecommunications methods at the discretion of the hearings officer."

SECTION 52. Section 576E-10, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) [The attorney general shall establish the office of child support hearings, and shall appoint and commission, without regard to chapter 76, such hearings officers as may be necessary to] The hearings officers appointed pursuant to chapter carry out the purposes of this chapter."

SECTION 53. Section 576E-13, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Proceedings for review shall be instituted in the family court of the circuit where the final decision and order was filed within thirty days after the preliminary ruling or within thirty days after service of the certified copy of the final decision and order of the hearings officer [or agency]. The filing of a notice of appeal shall not stay enforcement of the administrative order."

SECTION 54. Section 576E-14, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (a) to read:

"(a) The responsible parent, the agency, or the person having custody of the dependent child may file a request for suspension, termination, or modification of the child support provisions of a Hawaii court or administrative order with the [agency.] office. Such request shall be in writing, shall set forth the reasons for suspension, termination, or modification, including the change in circumstances since the date of the entry of the order, and shall state the address of the requesting party. The agency shall thereafter commence a review of the order and, if appropriate, shall commence administrative proceedings pursuant to sections 576E-5 through 576E-9. The need to provide for the child's health care needs through health insurance or other means shall be a basis for the agency to commence administrative proceedings pursuant to section 576E-5."

2. By amending subsections (d), (e), and (f) to read:

"(d) The responsible parent or custodial parent shall have a right to petition the family court or the child support enforcement agency not more than once every three years for review and adjustment of the child support order without having to show a change in circumstances. The responsible or custodial parent shall not be precluded from petitioning the family court or the [child support enforcement agency] office for review and adjustment of child support more than once in any three-year period if the second or subsequent request is supported by proof of a substantial or material change of circumstances.

(e) Upon satisfaction of a responsible parent's support obligation toward the dependent child and the State, the [agency or] hearings officer without application of any party may issue an order terminating child support and may concurrently, if applicable, issue an order terminating existing assignments against the responsible parent's income and income withholding orders.

(f) In those cases where child support payments are to continue due to the adult child's pursuance of education, the agency, at least three months prior to the adult child's nineteenth birthday, shall send notice by regular mail to the adult child and the custodial parent that prospective child support will be suspended unless proof is provided by the custodial parent or adult child to the child support enforcement agency, prior to the child's nineteenth birthday, that the child is presently enrolled as a full-time student in school or has been accepted into and plans to attend as a full-time student for the next semester a post-high school university, college or vocational school. If the custodial parent or adult child fails to do so, prospective child support payments may be automatically suspended by the child support enforcement agency upon the child reaching the age of nineteen years. In addition, if applicable, the [agency or] hearings officer may issue an order terminating existing assignments against the responsible parent's income and income assignment orders."

SECTION 55. All rights, powers, functions, and duties of agencies in the executive branch of government, including the department of accounting and general services, department of the attorney general, department of budget and finance, department of commerce and consumer affairs, department of health, department of human services, department of labor and industrial relations, and department of land and natural resources, University of Hawaii, as pertaining to this Act, are transferred to the office of administrative hearings.

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

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

SECTION 56. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2017-2018 and the same sum or so much thereof as may be necessary for fiscal year 2018-2019 for the establishment of the office of administrative hearings.

The sumsappropriated shall be expended by the department of accounting and general services for the purposes of this Act.

SECTION 57. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 58. This Act shall take effect on July 1, 2019; provided that section 56 shall take effect on July 1, 2017.

INTRODUCED BY:

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Report Title:

Administrative Hearings; Office; DAGS; Appropriations

Description:

Establishes a centralized office of administrative hearings in the department of accounting and general services to hear cases referred to it by state executive branch agencies. Appropriates funds.

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