HB 366 Summary

• Establishes a sunset provision for all principal state departments in Hawaii, with staggered repeal dates ranging from June 30, 2027 to June 30, 2041, requiring legislative action to continue departments beyond these dates.

• Requires the state auditor to conduct comprehensive reviews of each department before its scheduled repeal date, evaluating performance against 15 criteria including operational efficiency, mission achievement, overlap with other departments, and compliance with state and federal laws.

• Mandates departments submit performance reports to the auditor by September 1 of the odd year preceding their repeal date, including application of evaluation criteria and department-identified information.

• Requires the auditor to submit findings and recommendations to the legislature no later than 20 days before the regular session in the year of repeal, with recommendations on whether to repeal, continue, or reorganize the department.

• Allows repealed departments to continue operations for one year to conclude business, with unobligated funds lapsing and dedicated funds transferring to the general fund, except for obligations and bonded indebtedness which remain valid and enforceable.