Bill Text: HI HB2637 | 2018 | Regular Session | Introduced

Hawaii House Bill 2637 (Prior Session Legislation)

Introduced

Bill Title: Relating To A Department Of Airports.

Spectrum: Strong Partisan Bill (Democrat 10-1)

Status: (Introduced - Dead) 2018-01-29 - Referred to TRN, LAB/JUD, FIN, referral sheet 9 [HB2637 Detail]

Download: Hawaii-2018-HB2637-Introduced.html

HOUSE OF REPRESENTATIVES	H.B. NO.	2637
TWENTY-NINTH LEGISLATURE, 2018
STATE OF HAWAII

A BILL FOR AN ACT

Relating to a department of Airports.

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

SECTION 1. The legislature finds that the State's airports have a decades-long history of problematic operations, lack of transparency, lack of accountability, and questionable procurement practices. Much of this can be attributed to how the various planning, management, marketing, and capital development functions are distributed among a number of agencies, each with its own responsibilities and priorities. Without strong oversight that is focused on improving the airports, even the best intentions can lead to deficiencies, issues, and lawsuits.

Thus, the legislature finds that strong, stable leadership that is held accountable will improve the efficiency and effectiveness of the State's airports. Accordingly, the purpose of this Act is to create a department of airports, to be headed by a director of airports with a six-year appointment. A separate department devoted to aeronautic and airport issues will provide much-needed attention dedicated to improving the State's airports and will lead to higher levels of accountability. The six-year appointment for the director of airports will provide stability at the management level.

SECTION 2. Chapter 26, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§26-A Department of airports. (a) The department of airports shall be headed by a single executive to be known as the director of airports.

(b) The department shall develop, manage, operate, and maintain the State's airports and aeronautical facilities.

(c) The provisions of section 26-31 shall not apply and the director shall be nominated and, by and with the advice and consent of the senate, appointed by the governor for a six-year term."

SECTION 3. Section 26-4, Hawaii Revised Statutes, is amended to read as follows:

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

(1) Department of human resources development (Section 26-5)

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

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

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

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

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

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

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

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

(10) Department of human services (Section 26-14)

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

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

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

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

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

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

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

(18) Department of public safety (Section 26-14.6)[.]

(19) Department of airports (Section 26-A)."

SECTION 4. Section 26-6, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"(d) The department shall establish, coordinate, and manage a program to facilitate facility agreements between the State and private investors for the sale of facilities, excluding facilities managed or controlled by the department of transportation[,] or department of airports, to private investors; provided that each facility agreement contains the following requirements:

(1) The State shall sell the facility to the private investor, who shall:

(A) Renovate, improve, or construct a facility for the State and may maintain the facility; and

(B) Lease the facility to the State, pursuant to a building lease;

(2) The land upon which the facility rests shall not be sold to the private investor; provided that the land may be leased at a nominal rate to the private investor for a term that would, at a minimum, allow the private investor to recover the capital investment that has been made to the facility, including depreciation; and

(3) The State shall have the option of purchasing the facility from the private investor for the remaining balance of the debt service costs incurred by the private investor at any time.

For purposes of this subsection:

"Building lease" means a contract between the department of accounting and general services and a private investor in which the private investor leases an improved facility to the department for a specified period of time.

"Facility" means a building under the management and control of any state department.

"Facility agreement" means an agreement between the State and a private investor that, at a minimum, includes a description of the work to be done, the sale price for the facility, the duration of the agreement, the roles and responsibilities of the State and the private investor, and the terms and conditions for the lease.

"Private investor" means a nongovernmental entity."

SECTION 5. Section 26-19, Hawaii Revised Statutes, is amended to read as follows:

"§26-19 Department of transportation. The department of transportation shall be headed by a single executive to be known as the director of transportation. The department shall establish, maintain, and operate transportation facilities of the State, including highways, [~~airports,~~] harbors, and such other transportation facilities and activities, other than airports and aeronautics, as may be authorized by law.

The department shall plan, develop, promote, and coordinate various transportation systems management programs that shall include, but not be limited to, alternate work and school hours programs, bicycling programs, and ridesharing programs.

The department shall develop and promote ridesharing programs which shall include but not be limited to, carpool and vanpool programs, and may assist organizations interested in promoting similar programs, arrange for contracts with private organizations to manage and operate these programs, and assist in the formulation of ridesharing arrangements. Ridesharing programs include informal arrangements in which two or more persons ride together in a motor vehicle.

[~~The functions and authority heretofore exercised by the department of public works with respect to highways are transferred to the department of transportation established by this chapter.~~

On July 1, 1961, the Hawaii aeronautics commission, the board of harbor commissioners and the highway commission shall be abolished and their remaining functions, duties, and powers shall be transferred to the department of transportation.]"

SECTION 6. Section 26-52, Hawaii Revised Statutes, is amended to read as follows:

"§26-52 Department heads and executive officers. The salaries of the following state officers shall be as follows:

(1) The salary of the superintendent of education shall be set by the board of education at a rate no greater than $250,000 a year. The superintendent shall be subject to an annual performance evaluation that is in alignment with other employee evaluations within the department of education and are based on outcomes determined by the board of education; provided that nothing shall prohibit the board of education from conditioning a portion of the salary on performance;

(2) The salary of the president of the University of Hawaii shall be set by the board of regents;

(3) Effective July 1, 2004, the salaries of all department heads or executive officers of the departments of accounting and general services, agriculture, airports, attorney general, budget and finance, business, economic development, and tourism, commerce and consumer affairs, Hawaiian home lands, health, human resources development, human services, labor and industrial relations, land and natural resources, public safety, taxation, and transportation shall be as last recommended by the executive salary commission. Effective July 1, 2007, and every six years thereafter, the salaries shall be as last recommended by the commission on salaries pursuant to section 26‑56, unless rejected by the legislature; and

(4) The salary of the adjutant general shall be $85,302 a year. Effective July 1, 2007, and every six years thereafter, the salary of the adjutant general shall be as last recommended by the commission on salaries pursuant to section 26‑56, unless rejected by the legislature, except that if the state salary is in conflict with the pay and allowance fixed by the tables of the regular Army or Air Force of the United States, the latter shall prevail."

SECTION 7. Section 26-56, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The commission shall review and recommend an appropriate salary for the governor, lieutenant governor, members of the legislature, justices and judges of all state courts, administrative director of the State or an equivalent position, and department heads or executive officers and the deputies or assistants to the department heads of the departments of:

(1) Accounting and general services;

(2) Agriculture;

(3) Airports;

[~~(3)~~] (4) The attorney general;

[~~(4)~~] (5) Budget and finance;

[~~(5)~~] (6) Business, economic development, and tourism;

[~~(6)~~] (7) Commerce and consumer affairs;

[~~(7)~~] (8) Defense;

[~~(8)~~] (9) Hawaiian home lands;

[~~(9)~~] (10) Health;

[~~(10)~~] (11) Human resources development;

[~~(11)~~] (12) Human services;

[~~(12)~~] (13) Labor and industrial relations;

[~~(13)~~] (14) Land and natural resources;

[~~(14)~~] (15) Public safety;

[~~(15)~~] (16) Taxation; and

[~~(16)~~] (17) Transportation.

The commission shall not review the salary of any position in the department of education or the University of Hawaii.

The commission may recommend different salaries for department heads and executive officers and different salary ranges for deputies or assistants to department heads; provided that the commission shall recommend the same salary range for deputies or assistants to department heads within the same department; provided further that the appointing official shall specify the salary for a particular position within the applicable range.

The commission shall not recommend salaries lower than salary amounts recommended by prior commissions replaced by this section."

SECTION 8. Section 76-16, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

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

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

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

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

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

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

(6) Positions filled by popular vote;

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

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

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

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

(11) (A) Teachers, principals, vice-principals, complex area superintendents, deputy and assistant superintendents, other certificated personnel, not more than twenty noncertificated administrative, professional, and technical personnel not engaged in instructional work;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(21) Employees hired under the tenant hire program of the Hawaii public housing authority; provided that not more than twenty-six per cent of the authority's workforce in any housing project maintained or operated by the authority shall be hired under the tenant hire program;

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

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

(24) The sheriff;

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

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

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

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

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

SECTION 9. Section 102-14, Hawaii Revised Statutes, is amended by amending subsection (g) to read as follows:

"(g) This section shall not apply to the judiciary history center facilities in the Ali�iolani Hale building, University of Hawai�i system, public library system facilities, department of education facilities, department of transportation [~~airport and~~] harbor restaurant and lounge facilities and operations, department of airports restaurant and lounge facilities and operations, public parks, and state and county facilities designed and intended for use as facilities for entertainment and other public events."

SECTION 10. Section 171-24, Hawaii Revised Statutes, is amended to read as follows:

"§171-24 Land conveyances, preparation, signing, record, copies. Except for the preparation and execution of leases and licenses and the issuance of revocable permits and rights of entry by the department of airports and by the department of transportation, in its harbor [~~and airport~~] functions, all land patents, deeds, leases, grants, or other conveyances of any public land or any interest therein, shall be prepared by the department of land and natural resources. The department of transportation and department of airports, as applicable, shall, within thirty days after the execution or issuance of such documents, file or record as directed by the board of land and natural resources the original of the same with the board.

Documents setting aside lands for public purposes or withdrawing the same shall be signed by the governor. All other documents prepared by the department of land and natural resources shall be signed by its chairperson or any authorized employee.

The board shall keep a complete record of all such documents. The record shall be open to public inspection and the board shall furnish a certified copy, under its official seal, of any document to any person applying therefor, upon payment of reasonable charges set by the board for certified copies."

SECTION 11. Section 286-26, Hawaii Revised Statutes, is amended by amending subsection (h) to read as follows:

"(h) This section shall not apply to:

(1) Any motor vehicle which is covered by part XI, governing safety of motor carrier vehicle operation and equipment; provided that the rules adopted pursuant to part IA impose standards of inspection at least as strict as those imposed under subsection (g) and that certification is required at least as often as provided in subsections (a), (b), (c), and (d);

(2) Aircraft servicing vehicles that are being used exclusively on lands [~~set aside to~~] held by the department of [~~transportation for airport purposes;~~] airports; and

(3) Tractor trucks, forklifts, and top picks being used as marine terminal equipment temporarily moving in or between terminals at Sand Island and along Sand Island Parkway and Sand Island Access Road."

SECTION 12. Section 286-41, Hawaii Revised Statutes, is amended by amending subsection (f) to read as follows:

"(f) The provisions of this part requiring the registration of motor vehicles shall not apply to:

(1) Special mobile equipment;

(2) Implements of husbandry temporarily drawn, moved, or otherwise propelled upon the public highways;

(3) Aircraft servicing vehicles which are being used exclusively on lands [~~set aside to~~] held by the department of [~~transportation for airport purposes;~~] airports; and

(4) Tractor trucks, forklifts, and top picks being used as marine terminal equipment temporarily moving in or between terminals at Sand Island and along Sand Island Parkway and Sand Island Access Road."

SECTION 13. Section 437D-8.4, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Notwithstanding any law to the contrary, a lessor may visibly pass on to a lessee:

(1) The general excise tax attributable to the transaction;

(2) The vehicle license recovery fees, prorated at 1/292nd of the annual vehicle license recovery fees actually paid on the particular vehicle being rented for each full or partial twenty-four-hour rental day that the vehicle is rented; provided the total of all vehicle license recovery fees charged to all lessees shall not exceed the annual vehicle license recovery fees actually paid for the particular vehicle rented;

(3) The surcharge taxes imposed in chapter 251 attributable to the transaction;

(4) The county surcharge on state tax under section 46-16.8; provided that the lessor itemizes the tax for the lessee; [~~and~~]

(5) The rents or fees paid to the department of [~~transportation~~] airports under concession contracts negotiated pursuant to chapter 102, service permits granted pursuant to title 19, Hawaii Administrative Rules, or rental motor vehicle customer facility charges established pursuant to section 261-7; provided that:

(A) The rents or fees are limited to amounts that can be attributed to the proceeds of the particular transaction;

(B) The rents or fees shall not exceed the lessor's net payments to the department of [~~transportation~~] airports made under concession contract or service permit;

(C) The lessor submits to the department of [~~transportation~~] airports and the department of commerce and consumer affairs a statement, verified by a certified public accountant as correct, that reports the amounts of the rents or fees paid to the department of [~~transportation~~] airports pursuant to the applicable concession contract or service permit:

(i) For all airport locations; and

(ii) For each airport location;

(D) The lessor submits to the department of [~~transportation~~] airports and the department of commerce and consumer affairs a statement, verified by a certified public accountant as correct, that reports the amounts charged to lessees:

(i) For all airport locations;

(ii) For each airport location; and

(iii) For each lessee;

(E) The lessor includes in these reports the methodology used to determine the amount of fees charged to each lessee; and

(F) The lessor submits the above information to the department of [~~transportation~~] airports and the department of commerce and consumer affairs within three months of the end of the preceding annual accounting period or contract year as determined by the applicable concession agreement or service permit[.];

(6) The rents or fees paid to the department of transportation under concession contracts negotiated pursuant to chapter 102 or service permits granted pursuant to title 19, Hawaii Administrative Rules; provided that:

(A) The rents or fees are limited to amounts that can be attributed to the proceeds of the particular transaction;

(B) The rents or fees shall not exceed the lessor's net payments to the department of transportation made under concession contract or service permit;

(C) The lessor submits to the department of transportation and the department of commerce and consumer affairs a statement, verified by a certified public accountant as correct, that reports the amounts charged to lessees for each lessee;

(D) The lessor includes in these reports the methodology used to determine the amount of fees charged to each lessee; and

(E) The lessor submits the above information to the department of transportation and the department of commerce and consumer affairs within three months of the end of the preceding annual accounting period or contract year as determined by the applicable concession agreement or service permit.

The respective departments, in their sole discretion, may extend the time to submit the statement required in this subsection. If the director determines that an examination of the lessor's information is inappropriate under this subsection and the lessor fails to correct the matter within ninety days, the director may conduct an examination and charge a lessor an examination fee based upon the cost per hour per examiner for evaluating, investigating, and verifying compliance with this subsection, as well as additional amounts for travel, per diem, mileage, and other reasonable expenses incurred in connection with the examination, which shall relate solely to the requirements of this subsection, and which shall be billed by the departments as soon as feasible after the close of the examination. The cost per hour shall be $40 or as may be established by rules adopted by the director. The lessor shall pay the amounts billed within thirty days following the billing. All moneys collected by the director shall be credited to the compliance resolution fund."

SECTION 14. On and after the transfer completion date established by the department of airports in section 16(b) of this Act and thereafter, every reference to the department of transportation in chapters 261, 261D, and 262, Hawaii Revised Statutes, shall be a reference to the department of airports, and every reference to the director of transportation in chapters 261, 261D, and 262, Hawaii Revised Statutes, shall be a reference to the director of airports. After the transfer completion date but no later than when the subsequent supplements to the Hawaii Revised Statutes are prepared, the revisor of statutes shall substitute the phrase "director of airports" for the term "director of transportation" and the term "department of airports" for the term "department of transportation" in chapters 261, 261D, and 262, Hawaii Revised Statutes. In codifying the new section added by section 2 of this Act, the revisor of statutes shall substitute the appropriate section number for the letter used in designating the new sections in this Act.

SECTION 15. The department of airports shall succeed to the jurisdiction, powers, and responsibilities of the department of transportation over aeronautics and airports, including all of the functions relating to airports and aeronautics performed by the department and its airports division, on the transfer completion date announced by the department of airports pursuant to section 16(b) of this Act, which date shall be no sooner than , and no later than .

Thereafter, to the extent that the department of airports is authorized in this Act to exercise powers and duties which are also granted to other departments, offices, or boards of the State, with respect to airports and aeronautical facilities, the department of airports shall exclusively exercise such powers and perform such duties.

SECTION 16. (a) Within ninety days of the effective date of this Act, the governor shall designate a representative who shall facilitate the department of airport's orderly succession to the jurisdiction, powers, functions, rights, benefits, obligations, assets, liabilities, funds, accounts, contracts, and all other things currently held, used, incurred, or performed by the department of transportation, its director and staff, and its airports division, in exercising the authority and fulfilling the responsibilities conferred upon the department of transportation and the director of transportation, by chapters 261, 261D, and 262, Hawaii Revised Statutes. With regard to employees of the department of transportation, airports division, those employees covered by chapter 76, Hawaii Revised Statutes, shall maintain their status at the time of the succession to the authority.

Within one hundred eighty days of the effective date of this Act, the governor shall appoint the director of airports.

To facilitate the department of airport's timely assumption of the department of transportation's authority and responsibilities, including all of the department of transportation's associated bonds, notes, and obligations as described in paragraph (6) below, the department of transportation, the department of accounting and general services, the department of human resources development, the state procurement office, and any other state department or agency shall, if requested by the department of airports, enter into a memorandum of understanding with the department of airports to:

(1) Provide administrative support services for the department of airports pending the transfer of employees from the department of transportation to the department of airports pursuant to section 20 of this Act;

(2) Assist the department of airports with the organization of its human resources development functions, including establishing:

(A) A human resources office;

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

(C) The department of airport's exempt and excluded positions, and guidelines, procedures, and policies for filling them, and compensating the officers and employees who fill them;

(3) Assist the department of airports in establishing its accounting, budgeting, fund management, and communication and electronic information systems, and creating appropriate interfaces between the department of airports' accounting, budgeting, fund management, communication and electronic information systems, and those of the department of transportation, and other state agencies;

(4) Assist the department of airports in identifying the plans and reports that departments and agencies administratively attached to a department are required to prepare for the governor, the legislature or another state department or agency with respect to aeronautics or the state's airport system; determining whether such plans and reports have been prepared and will be transferred to the department of airports on the transfer completion date; and preparing the same for the department of airports, if they do not exist;

(5) Expeditiously transfer or otherwise facilitate the department of airport's acquisition or assumption of all of the powers, functions, rights, benefits, obligations, assets, funds, accounts, contracts, and all other things held, used, incurred, or performed by the department of transportation, its director and staff, and its airports division, in exercising the authority and fulfilling the responsibilities conferred upon the department of transportation and the director of transportation by chapters 261, 261D, and 262, Hawaii Revised Statutes;

(6) Assign and transfer that certain Certificate of the Director of Transportation Providing for the Issuance of State of Hawaii Airports System Revenue Bonds dated as of May 1, 1969, relating to certain revenue bonds and other obligations; that certain Indenture of Trust dated as of December 1, 2013, between the department of transportation and U.S. Bank National Association relating to certain certificates of participation; and that certain Indenture of Trust dated as of August 1, 2014, between the department of transportation and MUFG Union Bank, N.A., relating to certain customer facility charge revenue bonds, each as supplemented and amended to date; the assumption of all indebtedness of the department of transportation heretofore issued and outstanding thereunder; and the adoption of policies and procedures designed to ensure continuing compliance with the terms thereof for so long as they are applicable; and

(7) Reimburse each cooperating department or agency for the cost of services provided under the memorandum of understanding.

(b) As soon as feasible, the director of airports, with the concurrence of the director of transportation and the governor, shall establish the transfer completion date, which shall be no sooner than , and no later than , and publish notice of the transfer completion date by:

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

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

(3) Providing a copy of the notice to the department of transportation, the secretaries of the United States department of Transportation and department of Defense, the head of the Federal Aviation Administration, and the head of every other state department; and

(4) Posting the notice prominently at every airport and air navigation facility in the State.

All notices shall be published, distributed, or posted at least ninety days before the transfer completion date.

SECTION 17. It is the intent of this Act not to jeopardize the receipt of any federal aid nor to impair any existing federal income tax exemption to, security interest of, or obligation of the State or any agency thereof to the holders of any bonds or other obligations issued by the State or by any department or agency of the State, and to the extent, and only to the extent necessary to effectuate this intent, the governor may modify the strict provisions of this Act, but shall promptly report any such modification with reasons therefor to the legislature at its next session thereafter for review by the legislature.

SECTION 18. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date. The department of transportation shall be responsible for any and all obligations incurred by the department or its airports division in connection with the department's exercise of the authority and performance of the duties and responsibilities conferred upon it and its director by chapters 261, 261D, and 262, Hawaii Revised Statutes, until such time as such obligations have been assumed by the department of airports, including any accounts payable, accrued paid time off, debt, capital leases, and other obligations incurred before the transfer completion date. All collective bargaining disputes or claims against the department of transportation grounded in an act or omission, or an event that occurred prior to the transfer completion date shall remain the responsibility of the department of transportation. All liabilities arising out of the department of airports' exercise of the authority and performance of the duties and responsibilities conferred upon it and its director by chapters 261, 261D, and 262, Hawaii Revised Statutes, after the transfer completion date shall be the responsibility of the department of airports. The assumption by the department of airports of the bonds, notes, or other obligations of the department of transportation relating to the state's airports system shall be subject to the terms and provisions of any certificate, indenture, or resolution securing such bonds, notes, or other obligations. After the transfer completion date, the department of airports shall assume responsibility for all rights, duties, penalties, and proceedings of the department of transportation related to the State's airports system.

SECTION 19. The State of Hawaii pledges to and agrees with the holders of the bonds, notes, or other obligations of the department of transportation being assumed by the department of airports on the transfer completion date and the holders of the bonds, notes, or other obligations of the department of airports issued pursuant to chapters 37D or 39, Hawaii Revised Statutes, that the State shall not limit or alter the rights and powers vested in the department of airports so as to impair the terms of any contract made or assumed by the department of airports with such holders or in any way impair the rights and remedies of such holders until such bonds, notes, or other obligations, together with interest thereon, with interest on any unpaid installments of interest, and all costs and expenses in connection with any action or proceedings by or on behalf of such holders, are fully met and discharged. In addition, the State pledges to and agrees with the holders of the bonds, notes, or other obligations of the department of transportation being assumed by the department of airports on the transfer completion date and the holders of the bonds, notes, or other obligations of the department of airports issued pursuant to chapter 37D or 39, Hawaii Revised Statutes, that the State shall not limit or alter the basis on which the revenues or user taxes securing any such bonds, notes, or other obligations issued or assumed by the department of airports are to be received by the department of airports, or the rights of the department of airports to the use of such funds, so as to impair the terms of any such contract securing the same. The department of airports is authorized to include these pledges and agreements of the State in any contract with the holders of bonds, notes, or other obligations issued pursuant to chapter 37D or 39, Hawaii Revised Statutes.

SECTION 20. The department of airports shall recognize all bargaining units and collective bargaining agreements existing at the time of transfer to the department of airports. All employees who occupy civil service positions and whose functions are transferred to the department of airports by this Act shall retain their civil service status, whether permanent or temporary. The employees shall be transferred to the department of airports without loss of salary, seniority (except as prescribed by applicable collective bargaining agreements), retention points, prior service credits, 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 meet applicable requirements for the class or position to which transferred or appointed, as applicable.

Any employee who, prior to this Act, is a member of a bargaining unit, may remain in that bargaining unit when future collective bargaining agreements are negotiated.

Any employee who, prior to this Act, is exempt from civil service and is transferred to the department of airports 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. The director of airports may prescribe the duties and qualifications of these employees and fix their salaries without regard to chapter 76, Hawaii Revised Statutes.

No employee included in a collective bargaining unit as an employee of the department of transportation shall be laid off as a consequence of this Act.

SECTION 21. On or no more than ninety days after the transfer completion date, all appropriations, records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by the department of transportation relating to the functions transferred to the department of airports shall be transferred with the functions to which they relate.

SECTION 22. All rules, policies, procedures, guidelines, and other material adopted or developed by the department of transportation to implement provisions of the Hawaii Revised Statutes that are reenacted or made applicable to the department of airports by this Act shall remain in full force and effect on and after the transfer completion date established pursuant to section 16(b) of this Act, until amended or repealed by the department of airports pursuant to chapter 91, Hawaii Revised Statutes. In the interim, every reference to the department of transportation or director of transportation in those rules, policies, procedures, guidelines, and other material is amended to refer to the department of airports or director of airports, as appropriate.

SECTION 23. All deeds, executive orders, leases, contracts, loans, agreements, permits, or other documents executed or entered into by or on behalf of the department of transportation, pursuant to the provisions of the Hawaii Revised Statutes, that are reenacted or made applicable to the department of airports by this Act shall remain in full force and effect. On the transfer completion date established pursuant to section 16(b) of this Act, every reference to the department of transportation in those deeds, executive orders, leases, contracts, loans, agreements, permits or other documents shall be construed as a reference to the department of airports.

SECTION 24. 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 2018-2019, to effect the transfer of functions from the department of transportation to the department of airports required by this Act.

The sum appropriated shall be expended by the department of airports to implement the provisions of this Act.

SECTION 25. If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

SECTION 26. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 27. This Act shall take effect on July 1, 2018.

INTRODUCED BY:	_____________________________

Report Title:

Department of Airports; Department of Transportation; Aeronautics; Transfer of Functions; Appropriation

Description:

Establishes the department of airports. Transfers the airport and aeronautics functions of DOT to the department of airports by the established transfer completion date agreed upon by the director of airports, the director of transportation, and the governor. 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.