Bill Text: HI HB918 | 2011 | Regular Session | Introduced

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Bill Title: Transportation; Airports; Helicopter Contracts

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2011-01-26 - (H) Referred to TRN, FIN, referral sheet 2 [HB918 Detail]

Download: Hawaii-2011-HB918-Introduced.html

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HOUSE OF REPRESENTATIVES	H.B. NO.	918
TWENTY-SIXTH LEGISLATURE, 2011
STATE OF HAWAII

A BILL FOR AN ACT

 

 

RELATING TO TRANSPORTATION.

 

 

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

     SECTION 1.  The legislature finds that the State department of transportation needs to be provided with the flexibility and power to correct apparent inequities in the process of awarding long-term leases for helicopter operations at its Lihue airport.

     In the past, the department found itself with too few helicopter sites and too many parties interested in using these sites, particularly those at its Lihue airport.  Thus, the department offered such sites by bid through a process that allowed the more senior helicopter operators to select first among the available sites.  Any company not among the more senior operators was allowed to select from among the remaining available sites.

     Per discussions with the department, all operators were to enter into a long-term lease with the department with the understanding other interested operators would do likewise.  Among other things, these leases required the operator to construct facilities at the site at their own cost.  Subsequently, it was learned that many senior operators did not select sites, which left many sites without any long-term lease.  This resulted in an imbalance among helicopter operators because those that entered into long-term leases were burdened by costs associated with having to construct facilities at the helicopter sites, as well as other operational costs while other competing operators were allowed to operate on month to month permits without having to incur such costs.

The legislature finds that in view of the department falling significantly short of its expectations of leasing all of its sites on a long-term basis and given the resulting inequities to any operator now burdened with a long-term lease, the department and governor should have the power, authority, and discretion to correct such inequity by, among other things, allowing any operator with a long-term lease to:

     (1)  Terminate its lease;

     (2)  Adjust various leasing requirements including construction requirements; or

     (3)  Rebid on sites still available for lease.

     Further, the legislature finds and recognizes that the department realizes financial and other benefits from helicopter operators willing to enter into such long-term leases and build facilities at their own expense on the leased sites.

     Accordingly, the major purpose of this Act is to: 

(1)    Give the governor and the department the discretion

and authority to provide relief to helicopter operators holding long-term leases or contracts with the department; and

     (2)  Provides the types of relief that may be granted to helicopter operators and conditions under which this relief may be granted.

     SECTION 2.  Notwithstanding any laws or provisions to the contrary, including chapters 102 and 261, Hawaii Revised Statutes, the governor, or director of transportation, if so directed by the governor, with respect to helicopter operators at the Lihue airport:

     (1)  Shall have the discretion and authority to provide relief to a helicopter operator whose long-term lease or contract with the department of transportation was in effect prior to the effective date of this Act; provided that negotiations for relief for an operator covered by this Act shall commence within ninety days of the effective date of this Act or upon the postmarked date following the mailing by the operator of a written request for relief to the governor, whichever is sooner;      

     (2)  Shall have the discretion and authority, without limitation, to reach relief by mutual agreement with an operator to terminate the lease, extend the long-term lease or contract, enter into a long-term lease or contract for an adjoining helicopter site, switch helicopter sites; provided that the site is not currently on a long-term lease, grant or modify any existing relief provisions, adjust rent, and otherwise add to, modify, and amend any of the terms of the long-term lease or contract; provided that in granting relief pursuant to this Act other than termination of any existing long-term lease or contract, the department in providing relief shall set a rent that is fair and equitable when compared to rent being paid by similar operations that may be  operating on a month-to-month permit basis without any requirement to build at its expense any capital or other improvements at one or more of the operator’s sites.

     SECTION 3.  The relief provided for by this Act shall be provided as long as, and to the extent that, such relief does not violate any applicable federal laws and regulations and does not jeopardize the receipt of any federal aid or impair the obligation of Hawaii's department of transportation to the holders of any bond issued by Hawaii's department of transportation.

     SECTION 4.  To the extent necessary to take action, effectuate, and fulfill the purpose and intentions of this Act including the relief to be provided, the effects of section 171‑13, and chapters 102 and 261, Hawaii Revised Statutes, as well as any other statutory provisions or any rules that may be in conflict with this Act, shall be deemed waived and not applicable.

     SECTION 5.  If any provision of this Act, or the application thereof to any person or circumstance is held invalid, the invalidity shall not affect other provisions or applications of the Act, which can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.
     SECTION 6.  This Act shall take effect on July 1, 2011, and shall be repealed on July 1, 2013.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

Transportation; Airports; Helicopter Contracts

 

Description:

Provides limited relief to helicopter operators that entered into long-term leases with the Department of Transportation.  Effective July 1, 2011.

 

 

 

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