Bill Text: HI HB942 | 2014 | Regular Session | Amended
Bill Title: Harbors and Parks Development Authority
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-12-18 - Carried over to 2014 Regular Session. [HB942 Detail]
Download: Hawaii-2014-HB942-Amended.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
942 |
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TWENTY-SEVENTH LEGISLATURE, 2013 |
H.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO HARBORS AND PARKS DEVELOPMENT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 104-2, Hawaii Revised Statutes, is amended by amending the definition of "public work" to read as follows:
""Public work" means any project, including development of any housing pursuant to section 46-15 or chapter 201H and any project under chapter 171C and development, construction, renovation, and maintenance related to refurbishment of any real or personal property, where the funds or resources required to undertake the project are to any extent derived, either directly or indirectly, from public revenues of the State or any county, or from the sale of securities or bonds whose interest or dividends are exempt from state or federal taxes."
SECTION 2. Chapter 171C, Hawaii Revised Statutes, is amended by amending its title to read as follows:
"[[]CHAPTER[]]
171C
[PUBLIC LAND
DEVELOPMENT CORPORATION]
HARBORS AND PARKS DEVELOPMENT AUTHORITY"
SECTION 3. Sections 171-2, 171-64.7, 173A-4, and 173A-5, Hawaii Revised Statutes, are amended by substituting the words "harbors and parks development authority" wherever the words "public land development corporation" appears, as the context requires.
SECTION 4. Chapter 171C, Hawaii Revised Statutes, is amended as follows:
1. By amending sections 171C-1 to 171C-6 to read:
"[[]§171C-1[]] Findings and purpose. The legislature finds that certain public lands under the
jurisdiction of the department of land and natural resources that are used
for harbors, boating facilities and parks are not used effectively. Public lands in [certain areas] state
small boat harbors, boating facilities and parks may serve the State and
its people better if managed and developed into suitable recreational and
leisure centers where the public can congregate and where visitors to our State
can go as part of their holiday experience. However, the department of land and natural resources is hamstrung
by its limited mission[.] and limited
resources. Creating a development arm of the department of land and natural
resources, similar to the [agribusiness development corporation,] Hawaii community development authority, and placing
appropriate [public] harbors and park lands into the new [corporation's] agency's
jurisdiction[,] may help to create these recreation and leisure areas,
while also creating revenue-generating opportunities for the new [corporation.] agency. In turn, revenues generated may be used to offset the regulatory
functions of the department of land and natural resources.
The
purpose of this chapter is to create a vehicle and process to make optimal use
of [public land] harbors and park
lands for the economic, environmental,
and social benefit of the people of Hawaii. [This chapter establishes a
public corporation to administer an appropriate and culturally-sensitive public
land development program. The corporation] The authority shall coordinate and
administer programs to make optimal use of [public land,]
harbors and park lands, while ensuring that the public [land
is] lands are maintained for the people of Hawaii. The [corporation] authority shall identify the [public]
harbors and park lands that are suitable for development under this chapter,
carry on marketing analysis to determine the best revenue-generating programs
for the [public] harbors and park lands identified, enter into
public-private agreements to appropriately develop the [public] harbors
and park lands identified, and provide the leadership for the development,
[financing,] improvement, or enhancement of the selected development opportunities.
§171C-2 Definitions. As used in this chapter, unless the context clearly requires otherwise:
"Authority" means the harbors and parks development authority.
"Board"
means the board of directors of the [public land development corporation.] harbors and parks development authority.
["Coordinating entrepreneur" means a qualified
person capable of organizing, operating, and assuming the risk for enterprises,
including securing land and seed capital, developing or managing commercial or
recreational facilities or projects, arranging concession agreements, supplying
materials, maintaining equipment and infrastructure, and providing for the
processing and marketing of services or products.
"Corporation" means the public land development
corporation.
"Coventure" means an investment by the
corporation in qualified securities of an enterprise in which a substantial
investment is also being made or has been made by a professional investor to
provide seed capital to an enterprise. A guarantee by the corporation of
qualified securities provided by a professional investor shall be classified as
a coventure. An investment made by the corporation, which is a direct
investment, may later be classified as a coventure upon an investment by a
professional investor.]
"Department" means the department of land and natural resources.
"Development rights" means all of the rights related to the development of property including but not limited to the rights permitted under an ordinance or law relating to permitted uses of a property, the density or intensity of use, and the maximum height and size of improvements thereon.
["Direct investment" means an investment by the
corporation in qualified securities of an enterprise in which no investment is
being or has been made by a professional investor to provide seed capital to
the enterprise.
"Enterprise" means a business with its principal
place of business in Hawaii, which is or proposes to be engaged in recreational
and commercial area development, development of new value-added products,
enhancement of existing recreational or commercial commodities, and the
application of existing recreation or commercial areas and appurtenant
facilities to productive uses.]
"Fund" means the [Hawaii public land development]
harbors and parks development revolving fund.
"Harbors and park lands" means all state boating facilities, as defined in section 200-2.5, excluding mooring areas, and park lands under the jurisdiction of the department of land and natural resources.
["Private lender" includes banks, savings and
loan associations, mortgage companies, and other qualified companies whose
business includes the making of loans in the State.
"Professional investor" means any bank, bank
holding company, savings institution, farm credit institution, trust company,
insurance company, investment company registered under the federal Investment
Company Act of 1940, financial services loan company, pension or profit-sharing
trust or other financial institution or institutional buyer, licensee under the
federal Small Business Investment Act of 1958, as amended, or any person,
partnership, or other entity of whose resources, a substantial amount is
dedicated to investing in securities or debt instruments, and whose net worth
exceeds $250,000.]
"Project" means a specific undertaking,
improvement, or system consisting of work or improvement, including personal
property or any interest therein acquired, constructed, reconstructed,
rehabilitated, improved, altered, or repaired by the [corporation.] authority.
["Project cost" means the total of all costs
incurred by the corporation in carrying out all undertakings that it considers
reasonable and necessary for the development of a project, including studies;
plans; specifications; architectural, engineering, or any other development
related services; acquisition of land and any improvement thereon; site
preparation and development; construction; reconstruction; rehabilitation; the
necessary expenses in administering this chapter; the cost of financing the
project; and relocation costs.
"Project facilities" includes improvements,
roads and streets, utility and service corridors, utility lines where
applicable, water and irrigation systems, lighting systems, security systems,
sanitary sewerage systems, and other community facilities where applicable.]
"Qualified person" means any individual,
partnership, corporation, non-profit organization, or public agency
possessing the competence, expertise, experience, and resources, including
financial, personnel, and tangible qualifications, as may be deemed desirable
by the [corporation] authority in administering this chapter.
["Qualified security" means any note, stock,
treasury stock bond, debenture, evidence of indebtedness, certificate of
interest or participation in any profit-sharing agreement, pre-organization
certificate of subscription, transferable share, investment contract,
certificate of deposit for a security, certificate of interest or participation
in a patent or patent application, or in royalty or other payments under such a
patent or application, or, in general, any interest or instrument commonly
known as a "security" or any certificate for, receipt for, or option,
warrant, or right to subscribe to or purchase any of the foregoing.
"Revenue bonds" means bonds, notes, or other
evidence of indebtedness of the corporation issued to finance any project
facility.
"Seed capital" means financing that is provided
for the development, refinement, and commercialization of a product or process
and other working capital needs.
"Trustee"
means a national or state bank or trust company, within or outside the State,
that enters into a trust indenture.
"Trust
indenture" means an agreement by and between the corporation and a trustee
that sets forth the duties of the trustee with respect to the revenue bonds,
the security thereof, and other provisions as may be deemed necessary or
convenient by the corporation to secure the revenue bonds.
"Value-added"
means any activity that increases, by means of development or any other means,
the value of public lands.
[]§171C-3[] Public land development corporation;] Harbors and parks development authority; established. (a) There is established the [public
land development corporation,] harbors
and parks development authority, which shall be a public body corporate and
politic and an instrumentality and agency of the State. The [corporation] authority
shall be headed by the board. The [corporation] authority shall be placed within
the department for administrative purposes.
The [corporation] authority shall coordinate
and administer programs to make optimal use of [public land,] harbors and park lands, while ensuring that the public land is
maintained for the people of Hawaii. The
[corporation] authority shall identify the [public] harbors
and park lands that are suitable for development under this chapter, carry
on marketing analysis to determine the best revenue-generating programs for the
[public] harbors and park lands identified, enter into
public-private agreements to appropriately develop the [public] harbors
and park lands identified, and provide the leadership for the development, [financing,] improvement, or enhancement of the
selected development opportunities. Permissible
uses of [public
land] harbors
and park lands pursuant to this chapter
shall include but not be limited to office space; vehicular parking; commercial
uses; [hotel, residential, and timeshare uses;] accommodations; fueling
facilities; storage and repair facilities; and seawater air conditioning
plants.
(b) The board of directors of the [public land
development corporation] harbors and parks development authority
shall consist of [five] seven voting members. The members shall include:
(1) The chairperson of the board of land and natural
resources, or the [first deputy to the chairperson of the board of land and natural
resources;] chairperson's designee;
[(2) The
director of finance, or the director's designee;
(3)] (2)
The director of business, economic development, and tourism, or the director's
designee;
(3) The administrator of the office of Hawaiian affairs, or the administrator's designee;
(4) One
member to be appointed by the speaker of the house of representatives; [and]
(5) One member to be appointed by the president of the senate; and
(6) Two members from community organizations relating to the environment to be appointed by the governor;
provided that the persons appointed by the speaker of the house of representatives and the president of the senate shall possess sufficient knowledge, experience, and proven expertise in small and large businesses within the development or recreation industries, banking, real estate, finance, promotion, marketing, or management.
The term of office of the two voting members appointed by the speaker of the house of representatives and the president of the senate shall be four years each. The term of office of the two voting members appointed by the governor shall be four years each.
(c) The board shall appoint an executive director, who shall serve at the pleasure of the board and shall be exempt from chapter 76. The salary of the executive director shall be set by the board.
(d) The board, through its executive director, may appoint officers, agents, and employees; prescribe their duties and qualifications; and fix their salaries, without regard to chapter 76.
[[]§171C-4[]]
Powers; generally. (a) Except
as otherwise limited by this chapter, the [corporation] authority
may:
(1) Sue and be sued;
(2) Have a seal and alter the same at its pleasure;
(3) Make and alter bylaws for its organization and internal management;
(4) Adopt rules under chapter 91 necessary to effectuate this chapter in connection with its projects, operations, and properties;
(5) Make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this chapter;
(6) Carry out surveys, research, and investigations into technological, business, financial, consumer trends, and other aspects of leisure or recreational land uses in the national and international community;
(7) Acquire or contract to acquire by grant or purchase:
(A) All privately owned real property or any
interest therein and the improvements thereon, if any, that are determined by
the [corporation] authority to be necessary or appropriate for
its purposes under this chapter, including real property together with improvements,
if any, in excess of that needed for such use in cases where small remnants
would otherwise be left or where other justifiable cause necessitates the
acquisition to protect and preserve the contemplated improvements, or public
policy demands the acquisition in connection with such improvements; and
(B) Encumbrances, in the form of leases,
licenses, or otherwise, needed by the [corporation] authority or
any state department or agency for public purposes, the disposition of subdivided
lots, houselots, apartments or other economic units, or economic development;
(8) Own, hold, improve, and rehabilitate any real, personal, or mixed property acquired; and sell, assign, exchange, transfer, convey, lease, or otherwise dispose of, or encumber the same;
(9) By itself, or in partnership with qualified persons or other governmental agencies, acquire, construct, reconstruct, rehabilitate, improve, alter, or repair any infrastructure or accessory facilities in connection with any project; own, hold, sell, assign, transfer, convey, exchange, lease, or otherwise dispose of, or encumber any project; and develop or manage, by itself, or in partnership with qualified persons or other governmental agencies, any project that meets the purposes of this chapter;
(10) In cooperation with any governmental agency, [or
otherwise through direct investment or coventure with a professional investor
or enterprise] or any other person, or otherwise, acquire, construct, operate,
and maintain [public land] harbors and park lands facilities,
including but not limited to leisure, recreational, commercial, [residential,
time share, hotel,] accommodations, office space, and business facilities,
at rates or charges determined by the [corporation] authority;
(11) Assist developmental, recreational, and
visitor-industry related enterprises, or projects developed or managed by the [corporation,]
authority, by conducting detailed marketing analysis and developing
marketing and promotional strategies to strengthen the position of those enterprises
and to better exploit local, national, and international markets;
(12) Receive, examine, and determine the acceptability of applications of qualified persons for allowances or grants for the development of new recreation and visitor-industry related products, the expansion of established recreation and visitor-industry or land development enterprises, and the altering of existing recreational, visitor-industry related, or land development enterprises;
(13) Coordinate its activities with any federal or state programs;
(14) Grant options to purchase any project or to renew
any lease entered into by the [corporation] authority in
connection with any of its projects, on the terms and conditions it deems advisable;
(15) Provide advisory, consultative, training, and educational services and technical assistance to any person, partnership, or corporation, either public or private, to carry out the purposes of this chapter, and engage the services of consultants on a contractual basis for rendering professional and technical assistance and advice;
(16) Procure insurance against any loss in connection with its property and other assets and operations in amounts and from insurers as it deems desirable;
(17) Accept gifts or grants in any form from any public agency or any other source;
[(18) Issue bonds to finance the cost of a
project and to provide for the security thereof, in the manner and pursuant to
the procedure prescribed in this chapter;
(19) Subject to approval by the department,
assume management responsibilities for small boat harbors in accordance with
chapter 200 and any rules adopted pursuant thereto for periods not to exceed
one year;
(20)] (18) Recommend to the board of
land and natural resources the purchase of any privately owned properties that
may be appropriate for development; and
[(21)] (19) Do all things necessary or
proper to carry out the purposes of this chapter.
[(b)
Notwithstanding subsection (a) to the contrary, the corporation shall not
acquire, contract to acquire by grant or purchase, own, hold, sell, assign,
exchange, transfer, convey, lease, or otherwise dispose of, or encumber any
real, personal, or mixed property that is owned by the department as of July 1,
2011, except as expressly provided in this chapter.
(c)] (b) The powers conferred herein shall be liberally
construed to effectuate the purposes of this chapter.
[[]§171C-5[]] Hawaii [public land] harbors and park
lands optimization plan. (a)
The [corporation]
authority shall prepare the Hawaii [public land] harbors and park lands optimization plan, which shall define and
establish goals, objectives, policies, and priority guidelines for its [public land] harbors and park lands optimization development strategy. The plan shall include:
(1) An inventory of [public] harbors and
park lands with suitable, adequate development potential that are or will
become available that can be used to meet present and future [land] harbors
and park lands development needs;
[(2) Protection
of culturally-sensitive areas;
(3)] (2)
Feasible strategies for the promotion and marketing of any projects, including
but not limited to leisure, recreational, commercial, [residential, time share,
hotel,] accommodations, office space, and business projects, in
local, national, and international markets;
[(4)] (3) Proposals to improve the
gathering of data and the timely presentation of information on market demands
and trends that can be used to plan future projects; and
[(5)] (4)
Strategies for federal and state legislative actions that will promote the
development and enhancement of Hawaii's [public] harbors and park
lands.
(b)
The [corporation] authority shall revise the Hawaii [public]
harbors and park lands optimization plan from time to time and shall
incorporate the plan in its annual report to the governor and the legislature
as provided in section 171C-20.
§171C-6
[Public] Harbors
and park lands optimization projects; development
plans. (a) The [corporation] authority
may develop and implement [public] harbors and park lands
optimization projects where appropriate [public] harbors and park
lands may be developed or managed to create revenue-generating centers or
where, through detailed analysis, opportunities exist to exploit potential
local, national, and international markets.
(b)
The [corporation] authority may initiate and coordinate the
preparation of [business and public land]
harbors and park lands development plans
for its projects. The plans
shall include a proposal for the organization of the enterprise, a marketing
strategy, marketing-related information, the impact on existing development or
visitor-related industries throughout the State, and a recommendation for the
construction, reconstruction, rehabilitation, improvement, alteration, or
repair of any infrastructure or accessory facilities in connection with any
project.
(c)
The [corporation] authority may enter into cooperative agreements
with coordinating entrepreneurs or public agencies when the powers, services,
and capabilities of the persons or agencies are deemed necessary and
appropriate for the development and implementation of the [business and
public land] harbors and park lands development plans.
(d)
Notwithstanding any provision of this chapter to the contrary, when leasing [corporation]
authority-controlled [public land,] harbors and park lands, the [corporation] authority may contract with a
financial institution chartered under chapter 412 or a federal financial
institution, as defined under section 412:1-109, that transacts business in
this State or any state or county agency to provide lease management services. For the purposes of this subsection, "lease
management services" includes the collection of lease rent and any other
moneys owed to the [corporation] authority related to the lease
of [public land] harbors and park
lands under the [corporation's] authority's
control.
(e)
The [public land] harbors and park
lands planning activities of the [corporation]
authority shall be coordinated with the county planning departments and
the county land use plans, policies, and ordinances.
(f)
The [corporation] authority may amend the [business and public
land] harbors and park lands development plans as may be necessary or appropriate.
(g)
Any undertaking by the [corporation] authority pursuant to this
chapter shall be with the express [written] consent of the [landowner
or landowners directly affected.] department."
2. By amending section 171C-8 to read:
"[[]§171C-8[]] Approval of projects[,] and
plans[, and programs]. All [public]
harbors and park lands optimization projects[, public land] and harbors and park lands
development plans[, and project facility programs] developed by the [corporation]
authority shall be approved by the board."
3. By amending sections 171C-16 to 171C-17 to read:
"[[]§171C-16[]] Transfer of [public] harbors and park lands. (a) Notwithstanding chapter 171 or any provision of this chapter
to the contrary, the department may transfer, subject to the approval of the
board of land and natural resources, development rights for harbors and park
lands [under its jurisdiction] to the [corporation] authority
for purposes of this chapter[; provided that:]. The department may
not transfer harbors or park lands in fee simple to the authority.
[(1) Development rights for all small boat
harbors that have an existing contract in force and effect relating to a lease
or development agreement, or a request for proposal that has been advertised or
is under negotiation for capital improvements to harbor facilities as of July
1, 2011, shall be transferred to the corporation on July 1, 2011; provided that
with regard to any:
(A) Request for proposal that has
been issued for which a contract has not been executed; or
(B) Contract executed by the
department that is in force and effect, on the effective date of this section
that relates to the development or redevelopment of submerged or fast lands of
a small boat harbor under the control of the department, if the public land corporation
is not fully operational by July 1, 2011, the department shall continue to
execute its responsibilities relating to negotiating or executing a contract
for any such request for proposal or managing any existing contract until the
corporation is able to assume the negotiating, oversight, and management
responsibilities relating to the existing contract or request for proposal, as
the case may be, or until June 30, 2013, whichever occurs first;
(2) If the property to be developed is two
hundred acres or less and the board of land and natural resources approves the
transfer of development rights appurtenant to the property to be developed, the
development rights shall be transferred to the corporation;
(3) If the property to be developed is
greater than two hundred acres and the board of land and natural resources
approves the transfer of development rights appurtenant to the property to be
developed, the development rights shall be transferred to the corporation,
subject to disapproval by the legislature by two-thirds vote of either the
senate or the house of representatives or by majority vote of both houses in
any regular or special session next following the date of transfer; and
(4) The size of any property to be
developed shall be deemed to be conclusively determined by the state surveyor,
as established in section 26-6.]
(b)
If the [corporation] authority finds that state lands under the
control and management of the department or other public agencies are suitable
for its purposes under this chapter, the [corporation] authority
may lease the lands from the agency having the control and management of those
lands, upon such terms and conditions as may be agreed to by the parties.
(c) Notwithstanding subsection (b) to the contrary, no
public lands shall be leased to the [corporation] authority if
the lease would impair any covenant between the State or any county, or any
department or board thereof, and the holders of bonds issued by the State or
the county, or any department or board thereof.
§171C-17 [Hawaii public land] Harbors and parks
development revolving fund; established; use of [corporation] authority
funds. [(a)] There is established the [Hawaii public land] harbors and
parks development revolving fund, to
which shall be credited any state appropriations to the fund, [any sums
collected as a result of bonds issued pursuant to this chapter,] any
revenues generated from [the facilities, except as provided in section
171C-17.5 and 171C-21,] harbors and park lands development, or other moneys made available to the
fund, to be expended as directed by the [corporation.] authority.
[(b)
Notwithstanding any provision of this chapter to the contrary, revenues,
income, and receipts derived from the project facilities shall be set apart in a
separate subaccount and applied solely for the following purposes:
(1) The principal and interest on the
bonds;
(2) The cost of administering, operating,
and maintaining the project not to exceed fifteen per cent of the sums
collected, net of principal and interest payments, on account of assessments
and interest for any specific project facility;
(3) The establishment of program reserves
not to exceed eighty-five per cent of the sums collected, net of principal and
interest payments, on account of assessments and interest for any specific
project facility; provided that accumulated reserves shall be credited to and
become a part of the special land and development fund, established under
section 171-19, except in the case of a specific project facility that is
situated in part or wholly within a small boat harbor, in which case those
accumulated reserves attributable to the portions of the facility situated in
the small boat harbor shall be credited to and become a part of the boating
special fund, established under section 248-8; and
(4) Other purposes as may be authorized in
the proceedings providing for the issuance of the bonds.
If any surplus remains in any
subaccount after the payment of the bonds chargeable against that subaccount,
the surplus shall be credited to and become a part of the Hawaii public land
development revolving fund, except as provided in paragraph (3).
Notwithstanding any other law to the contrary, moneys in the fund may be used
to make up any deficiencies in the subaccount.
(c)
The corporation shall hold the fund in an account or accounts separate from
other funds. Except as otherwise provided in subsection (b), the corporation
shall invest and reinvest the fund and the income thereof to:
(1) Purchase qualified securities issued by
enterprises for the purpose of raising seed capital; provided that the
investment shall comply with the requirements of this chapter;
(2) Make grants, loans, and provide other
monetary forms of assistance necessary to carry out the purposes of this
chapter; and
(3) Purchase securities as may be lawful
investments for fiduciaries in the State.
All appropriations, grants,
contractual reimbursements, and other funds not designated for this purpose may
be used to pay for the proper general expenses and to carry out the purposes of
the corporation.
(d)
The corporation shall purchase qualified securities issued by an enterprise
only after:
(1) Receiving:
(A) An application from the
enterprise containing a business plan, which is consistent with the business
and public land development plan, including a description of the enterprise and
its management, product, and market;
(B) A statement of the amount,
timing, and projected use of the capital required;
(C) A statement of the potential
economic impact of the enterprise, including the number, location, and types of
jobs expected to be created; and
(D) Any other information as the
corporation shall require;
(2) Determining, based upon the application
submitted, that:
(A) The proceeds of the investment
will be used only to cover the seed capital needs of the enterprise, except as
authorized in this section;
(B) The enterprise has a reasonable
chance of success;
(C) The enterprise has the
reasonable potential to create employment within the State and offers
employment opportunities to residents;
(D) The coordinating entrepreneur
and other founders of the enterprise have already made or are prepared to make
a substantial financial and time commitment to the enterprise;
(E) The securities to be purchased
are qualified securities;
(F) There is a reasonable
possibility that the corporation will recoup at least its initial investment;
and
(G) Binding commitments have been
made to the corporation by the enterprise for adequate reporting of financial
data to the corporation, which shall include a requirement for an annual or
other periodic audit of the books of the enterprise, and for control by the
corporation that it considers prudent over the management of the enterprise, in
order to protect the investment of the corporation, including membership on the
board of directors of the enterprise, ownership of voting stock, input in
management decisions, and the right of access to the financial and other
records of the enterprise; and
(3) Entering into a binding agreement with
the enterprise concerning the manner of payback by the enterprise of the funds
advanced, granted, loaned, or received from the corporation. The manner of
payback may include the payment of dividends, returns from the public sale of
corporate securities or products, royalties, and other methods of payback
acceptable to the corporation. In determining the manner of payback the
corporation shall establish a rate of return or rate of interest to be paid on
any investment, loan, or grant of corporation funds under this section.
(e)
If the corporation makes a direct investment, it shall also find that a
reasonable effort has been made to find a professional investor to make an
investment in the enterprise as a coventure, and that the effort was
unsuccessful. The findings, when made by the corporation, shall be conclusive.
(f)
The corporation shall make investments in qualified securities issued by an
enterprise in accordance with the following limits:
(1) Not more than $500,000 shall be
invested in the securities of any one enterprise, except that more than a total
of $500,000 may be invested in the securities of any one enterprise if the
corporation finds, after its initial investment, that additional investments in
that enterprise are required to protect the initial investment of the
corporation, and the other findings set forth in subsection (d) and this
subsection are made as to the additional investment;
(2) The corporation shall not own
securities representing more than forty-nine per cent of the voting stock of
any one enterprise at the time of purchase by the corporation after giving effect
to the conversion of all outstanding convertible securities of the enterprise,
except that if a severe financial difficulty of the enterprise occurs,
threatening the investment of the corporation in the enterprise, a greater
percentage of those securities may be owned by the corporation; and
(3) Not more than fifty per cent of the
assets of the corporation shall be invested in direct investments at any time.
(g)
No investment, loan, grant, or use of corporate funds for the purposes of this
chapter shall be subject to chapter 42F.]"
4. By amending section 171C-18 to read:
"[[]§171C-18[]]
Exemption from taxation. The
[corporation] authority shall not be required to pay state taxes
of any kind."
5. By amending section 171C-20 to read:
"[[]§171C-20[]]
Annual report. The [corporation] authority shall submit to the
governor and the legislature, no later than twenty days prior to the convening
of each regular session, a complete and detailed report of its plans and activities."
6. By repealing section 171C-7:
["§171C-7 Project facility program. (a) The corporation may develop a
project to identify necessary project facilities within a project area.
(b)
Unless and except as otherwise provided by law, whenever the corporation
undertakes, or causes to be undertaken, any project facility as part of a
project, the cost of providing the project facilities shall be assessed against
the real property in the project area specially benefiting from the project
facilities. Subject to the express written consent of the landowners directly
affected, the corporation shall determine the properties that will benefit from
the project facilities to be undertaken and may establish assessment areas that
include the properties specially benefiting from the project facilities. The
corporation shall fix the assessments against the real property specially
benefited.
(c)
Unless and except as otherwise provided by law, the corporation may adopt rules
pursuant to chapter 91 to establish the method of undertaking and financing
project facilities in a project area.
(d)
Any other law to the contrary notwithstanding, in assessing real property for
project facilities, the corporation shall assess the real property within a
project area according to the special benefits conferred upon the real property
by the project facilities. These methods may include an assessment on a
frontage basis or according to the area of real property within a project area,
or any other assessment method that assesses the real property according to the
special benefit conferred, or any combination thereof. No assessment levied
under this section against real property specially benefited under this chapter
shall constitute a tax on real property within the meaning of any law.
(e)
Any other provisions to the contrary notwithstanding, the corporation, at its
discretion, may enter into any agreement with the county in which project
facilities are located, to implement the purposes of this section.
(f)
If all or a part of the project facilities to be financed through bonds by the
corporation may be dedicated to the county in which the project facilities are
to be located, the corporation shall ensure that the project facilities or
applicable portions thereof are designed and constructed to meet county
requirements."]
7. By repealing sections 171C-9 to 171C-15:
["[§171C-9 Revenue bonds;
issuance.] (a) The corporation, with the approval of the governor, may issue,
from time to time, revenue bonds in amounts not exceeding the total amount of
bonds authorized to be issued by the legislature for the purpose of
constructing, acquiring, remodeling, furnishing, and equipping any project
facility, including the acquisition of the site of the facility; or acquiring
non-public lands through purchase to sustain and preserve leisure or
recreational enterprises within a contiguous geographic area.
(b)
All revenue bonds shall be issued pursuant to part III of chapter 39, except as
provided in this chapter.
(c)
The revenue bonds shall be issued in the name of the corporation and not in the
name of the State. The final maturity date of the revenue bonds may be any date
not exceeding thirty years from the date of issuance.
[§171C-10] Revenue bonds; payment and security. (a) The revenue bonds shall be
payable from and secured by the improvements to real properties specially
benefited or improved and the assessments thereon, or by the revenues derived
from the project facility for which the revenue bonds were issued, including
revenue derived from insurance proceeds and reserve accounts, and earnings
thereon.
(b)
The corporation may pledge revenues derived from the project facility financed
from the proceeds of the revenue bonds to the punctual payment of the
principal, interest, and redemption premiums, if any, on the revenue bonds.
(c)
The revenue bonds may be additionally secured by the pledge or assignment of
the loans and other agreements or any note or other undertaking, obligation, or
property held by the corporation to secure the loans.
(d)
Any pledge made by the corporation shall create a perfected security interest
in the revenues, moneys, or property so pledged and thereafter received by the
corporation, from and after the time that the financing statement with respect
to the revenues, moneys, or property so pledged and thereafter received are
filed with the bureau of conveyances. Upon the filing, the revenues, moneys, or
property so pledged and thereafter received by the corporation shall immediately
be subject to a lien of any pledge without any physical delivery thereof or
having claims of any kind in tort, contract, or otherwise against the
corporation, irrespective of whether the parties have notice thereof. This
section shall apply to any financing statement heretofore or hereafter filed
with the bureau of conveyances with respect to any pledge made to secure
revenue bonds issued under this chapter.
[§171C-11] Revenue bonds; interest rate, price, and sale. (a) The revenue bonds issued pursuant
to this chapter shall bear interest at a rate or rates and shall be payable on
a date or dates, as the corporation shall determine.
(b)
The corporation shall include the costs of undertaking the project facility for
which the revenue bonds are issued in determining the principal amount of
revenue bonds to be issued. In determining the cost of undertaking the project
facility, the corporation may include:
(1) The cost of constructing, acquiring,
remodeling, furnishing, and equipping the project facility, including the
acquisition of the site of the facility;
(2) The cost of purchasing or funding loans
or other agreements entered into for the project facility;
(3) The costs of studies and surveys;
(4) Insurance premiums;
(5) Underwriting fees;
(6) Financial consultant, legal,
accounting, and marketing services incurred;
(7) Reserve account, trustee, custodian,
and rating agency fees; and
(8) Any capitalized interest.
(c)
The revenue bonds may be sold at public or private sale, and for a price as may
be determined by the corporation.
[§171C-12] Revenue bonds; investment of proceeds and redemption. Subject to any agreement with the holders of its revenue bonds, the
corporation may:
(1) Invest its moneys not required for
immediate use, including proceeds from the sale of revenue bonds, in any
investment in accordance with procedures prescribed in a trust indenture; and
(2) Purchase its revenue bonds out of any
fund or money of the corporation available therefor, and hold, cancel, or
resell the revenue bonds.
[§171C-13] Revenue bonds; subaccounts. A separate subaccount shall be established for each project
facility financed from the proceeds of the revenue bonds secured under the same
trust indenture. Each subaccount shall be designated "project facility
revenue bond subaccount" and shall bear additional designation as the
corporation deems appropriate to properly identify the fund.
[§171C-14] Trustee; designation, duties. (a) The corporation shall designate a trustee for each issue of
revenue bonds secured under the same trust indenture.
(b) The trustee shall be authorized by the corporation to
hold and administer the project facility revenue bond subaccount established
pursuant to section -13, to receive and receipt for, hold, and administer the
revenues derived by the corporation from the project facility for which the
revenue bonds were issued, and to apply these revenues to the payment of the
cost of:
(1) Undertaking the project facility;
(2) Administering and operating the
proceedings providing for the issuance of the revenue bonds;
(3) The principal or interest on these
bonds;
(4) The establishment of reserves; and
(5) Other purposes as may be authorized in
the proceedings providing for the issuance of the revenue bonds.
(c)
Notwithstanding section 39-68 to the contrary, the director of finance may
appoint the trustee to serve as fiscal agent for:
(1) The payment of the principal of and
interest on the revenue bonds; and
(2) The purchase, registration, transfer,
exchange, and redemption of the bonds.
(d)
The trustee shall perform additional functions with respect to the payment,
purchase, registration, transfer, exchange, and redemption of the bonds, as the
director of finance may deem necessary, advisable, or expeditious, including
the holding of the revenue bonds and coupons that have been paid and the
supervision of the destruction thereof in accordance with applicable law.
(e)
Nothing in this chapter shall limit or be construed to limit the powers granted
to the director of finance in sections 36-3, 39-13, and 39-68(a), to appoint
the trustee or others as fiscal agents, paying agents, and registrars for the
revenue bonds or to authorize and empower those fiscal agents, paying agents,
and registrars to perform the functions referred to in those sections.
[§171C-15] Trust indenture. (a)
A trust indenture may contain covenants and provisions authorized by part III
of chapter 39, and as may be deemed necessary or convenient by the corporation
for the purposes of this chapter.
(b)
A trust indenture may allow the corporation to pledge and assign to the trustee
loans and other agreements related to the project facility, and the rights of
the corporation thereunder, including the right to receive revenues thereunder
and to enforce the provisions thereof.
(c)
A trust indenture shall also contain provisions as to:
(1) The investment of the proceeds of the
revenue bonds, the investment of any reserve for the bonds, the investment of
the revenues of the project facility, and the use and application of the
earnings from investments; and
(2) The terms and conditions upon which the
holders of the revenue bonds or any portion of them or any trustee thereof may
institute proceedings for the foreclosure of any loan or other agreement or any
note or other undertaking, obligation, or property securing the payment of the
bonds and the use and application of the moneys derived from the foreclosure.
(d)
A trust indenture may also contain provisions deemed necessary or desirable by
the corporation to obtain or permit, by grant, interest, subsidy, or otherwise,
the participation of the federal government in the financing of the costs of
undertaking the project facility."]
8. By repealing section 171C-17.5:
["[§171C-17.5] Stadium facilities special fund. (a) There is established a stadium facilities special fund into
which shall be deposited all proceeds from leases, permits, interest income
generated from Aloha Stadium lands and facilities, and other revenue generated
from the non-permanent disposition of Aloha Stadium lands and facilities under
this chapter, less the following:
(1) The principal and interest on bonds
issued pursuant to this chapter for projects on Aloha Stadium lands or
utilizing Aloha Stadium facilities;
(2) The cost of administering, operating,
and maintaining projects on Aloha Stadium lands or utilizing Aloha Stadium
facilities, not to exceed fifteen per cent of the sums collected, net of
principal and interest payments on bonds; and
(3) Other sums that may be necessary for
the issuance of bonds under this chapter.
(b) The stadium facilities special fund
shall be administered by the stadium authority. Except as otherwise provided,
all moneys in the stadium facilities special fund shall be used exclusively for
stadium purposes."]
9. By repealing section 171C-19:
["[§171C-19] Exemption from
requirements. Notwithstanding section
171-42 and except as otherwise noted in this chapter, projects pursuant to this
chapter shall be exempt from all statutes, ordinances, charter provisions, and
rules of any government agency relating to special improvement district
assessments or requirements; land use, zoning, and construction standards for
subdivisions, development, and improvement of land; and the construction,
improvement, and sale of homes thereon; provided that the public land planning
activities of the corporation shall be coordinated with the county planning departments
and the county land use plans, policies, and ordinances."]
10. By repealing section 171C-21:
["[§171C-21] School facilities special
fund. (a) There is established a school
facilities special fund into which shall be deposited all proceeds from leases,
permits, interest income generated from public school lands and facilities, and
other revenue generated from the non-permanent disposition of public school
lands and facilities under this chapter, less the following:
(1) The principal and interest on bonds
issued pursuant to this chapter for projects on public school lands or
utilizing public school facilities;
(2) The cost of administering, operating,
and maintaining projects on public school lands or utilizing public school
facilities, not to exceed fifteen per cent of the sums collected, net of principal
and interest payments on bonds; and
(3) Other sums that may be necessary for
the issuance of bonds under this chapter.
(b) The school facilities special fund
shall be administered by the department of education in consultation with the
board of education. Except as otherwise provided, all moneys in the school
facilities special fund shall be used exclusively for the new construction and
upgrade of twenty-first century school facilities, and the retrofit and upgrade
of existing school facilities to meet twenty-first century school
standards."]
SECTION 5. Section 206E-4, Hawaii Revised Statutes, is amended to read as follows:
"§206E-4 Powers; generally. Except as otherwise limited by this chapter, the authority may:
(1) Sue and be sued;
(2) Have a seal and alter the same at pleasure;
(3) Make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this chapter;
(4) Make and alter bylaws for its organization and internal management;
(5) Make rules with respect to its projects, operations, properties, and facilities, which rules shall be in conformance with chapter 91;
(6) Through its executive director appoint officers, agents, and employees, prescribe their duties and qualifications, and fix their salaries, without regard to chapter 76;
(7) Prepare or cause to be prepared a community development plan for all designated community development districts;
(8) Acquire, reacquire, or contract to acquire or reacquire by grant or purchase real, personal, or mixed property or any interest therein; to own, hold, clear, improve, and rehabilitate, and to sell, assign, exchange, transfer, convey, lease, or otherwise dispose of or encumber the same;
(9) Acquire or reacquire by condemnation real, personal, or mixed property or any interest therein for public facilities, including but not limited to streets, sidewalks, parks, schools, and other public improvements;
(10) By itself, or in partnership with qualified persons, acquire, reacquire, construct, reconstruct, rehabilitate, improve, alter, or repair or provide for the construction, reconstruction, improvement, alteration, or repair of any project; own, hold, sell, assign, transfer, convey, exchange, lease, or otherwise dispose of or encumber any project, and in the case of the sale of any project, accept a purchase money mortgage in connection therewith; and repurchase or otherwise acquire any project which the authority has theretofore sold or otherwise conveyed, transferred, or disposed of;
(11) Arrange or contract for the planning, replanning, opening, grading, or closing of streets, roads, roadways, alleys, or other places, or for the furnishing of facilities or for the acquisition of property or property rights or for the furnishing of property or services in connection with a project;
(12) Grant options to purchase any project or to renew any lease entered into by it in connection with any of its projects, on such terms and conditions as it deems advisable;
(13) Prepare or cause to be prepared plans, specifications, designs, and estimates of costs for the construction, reconstruction, rehabilitation, improvement, alteration, or repair of any project, and from time to time to modify such plans, specifications, designs, or estimates;
(14) Provide advisory, consultative, training, and educational services, technical assistance, and advice to any person, partnership, or corporation, either public or private, to carry out the purposes of this chapter, and engage the services of consultants on a contractual basis for rendering professional and technical assistance and advice;
(15) Procure insurance against any loss in connection with its property and other assets and operations in such amounts and from such insurers as it deems desirable;
(16) Contract for and accept gifts or grants in any form from any public agency or from any other source;
(17) Do any and all things necessary to carry out its purposes and exercise the powers given and granted in this chapter;
(18) Allow satisfaction of any affordable housing requirements imposed by the authority upon any proposed development project through the construction of reserved housing, as defined in section 206E-101, by a person on land located outside the geographic boundaries of the authority's jurisdiction; provided that the authority shall not permit any person to make cash payments in lieu of providing reserved housing, except to account for any fractional unit that results after calculating the percentage requirement against residential floor space or total number of units developed. The substituted housing shall be located on the same island as the development project and shall be substantially equal in value to the required reserved housing units that were to be developed on site. The authority shall establish the following priority in the development of reserved housing:
(A) Within the community development district;
(B) Within areas immediately surrounding the community development district;
(C) Areas within the central urban core;
(D) In outlying areas within the same island as the development project.
The Hawaii community development authority shall adopt rules relating to the approval of reserved housing that are developed outside of a community development district. The rules shall include, but are not limited to, the establishment of guidelines to ensure compliance with the above priorities; and
(19) Assist the [public land development
corporation] harbors and parks development authority established by
section 171C-3 in identifying [public] harbors and park lands
that may be suitable for development, carrying on marketing analysis to
determine the best revenue-generating programs for the [public] harbors
and park lands identified, entering into public-private agreements to
appropriately develop the [public] harbors and park lands
identified, and providing the leadership and technical support and expertise
for the development, [financing,] improvement, or enhancement of the
selected development opportunities regardless of whether the development
opportunities are within a community development district; provided that no
assistance shall be provided unless the authority authorizes the assistance."
SECTION 6. Act 282, Session Laws of Hawaii 2012, is amended by repealing Section 1.
["SECTION 1. (a) The division of
boating and ocean recreation is directed to transfer the development rights of
the parcels of land identified by tax map keys (3)7-4-08:03 and (3)7-4-08:41 to
the public land development corporation, and the land division is directed to
transfer the development rights of the parcel of land identified by tax map key
(3)7-4-08:71 to the public land development corporation; provided that the
division of boating and ocean recreation and the land division shall continue
to execute their respective responsibilities relating to negotiating or
executing a contract for any request for proposal or managing any existing
contract until the public land development corporation is able to assume the
negotiating, oversight, and management responsibilities relating to the
existing contract or request for proposal, as the case may be, or until June
30, 2013, whichever occurs first.
(b) The public land development corporation shall coordinate the development
of the land pursuant to chapter 171C, Hawaii Revised Statutes."]
SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 8. This Act shall take effect on July 1, 3000; provided that sections 1, 2, 3, 4, and 5 shall be repealed on June 30, 2018; provided further that sections 104-2, 173A-4 and 173A-5, Hawaii Revised Statutes, shall be reenacted in the form in which they read on June 30, 3000; sections 171-2, and 171-64.7, Hawaii Revised Statutes, shall be reenacted in the form in which they read on July 5, 2012; and section 206E-4, Hawaii Revised Statutes shall be reenacted in the form in which it read on June 30, 2011; and provided further that, when reenacting sections 173A-4 and 173A-5, Hawaii Revised Statutes, the revisor of statutes shall strike all references to the public land development corporation.
Report Title:
Harbors and Parks Development Authority
Description:
Establishes the Harbors and Parks Development Authority to coordinate and administer programs to make optimal use of harbors and park lands, while ensuring that the public lands are maintained for the people of Hawaii. Effective July 1, 3000. (HB942 HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
