Bill Text: HI SB215 | 2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: DBEDT; Public-Private Partnership Authority; Pilot Project; Appropriation ($)

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Engrossed - Dead) 2013-12-18 - Carried over to 2014 Regular Session. [SB215 Detail]

Download: Hawaii-2014-SB215-Amended.html

THE SENATE

S.B. NO.

215

TWENTY-SEVENTH LEGISLATURE, 2013

S.D. 1

STATE OF HAWAII

Proposed

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO ECONOMIC DEVELOPMENT.

 

 

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

 


PART I

     SECTION 1.  The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

PUblic-private partnership authority

     §   -1  Findings and purpose.  The legislature finds that these are difficult economic times for all levels of government, as public service demands for an increasing population put pressure on revenue resources.  The State faces the challenge of balancing a budget while addressing escalating infrastructure and service needs.  Due to insufficient funding and postponed maintenance, the daily demands continue to increase.

     Governments around the world have been engaging in public-private partnerships to address these economic challenges.  State agencies are hamstrung by their limited missions and dwindling resources.  Creating a partnership agency to collaborate with all state agencies and private sector entities may help to deliver services and facilities more effectively.

     The purpose of this chapter is to create a vehicle and process to use the skills and assets of both the public and private sectors to deliver services and facilities for the economic, environmental, and social benefit of the people of Hawaii.  This chapter establishes the public-private partnership authority to administer appropriate and culturally-sensitive projects.  The authority shall coordinate and administer projects, while ensuring that resources are maintained for the people of Hawaii.  The authority shall identify projects that are suitable under this chapter, carry out appropriate analyses, enter into public-private agreements, and provide the leadership for the development, financing, improvement, or enhancement of appropriate facilities, operations, and property.

     §   -2  Definitions.  As used in this chapter, unless the context clearly requires otherwise:

     "Authority" means the public-private partnership authority.

     "Board" means the board of directors of the public-private partnership authority.

     "Cooperative agreement" means an instrument, such as a contract, compact, memorandum of understanding, or agreement, that is signed and binding upon all parties to the agreement.

     "Fund" means the public-private partnership special fund.

     "Management rights" means the authority to control and manage projects.

     "Project" means a specific undertaking related to the operations and properties of any public agency, excluding state parks but including and not limited to:

     (1)  Development of plans and management of programs for a public agency; and

     (2)  Planning, improvement, construction, rehabilitation, alteration, maintenance, or repair for real property or energy generation.

     "Qualified person" means any individual, partnership, corporation, or public agency possessing the competence, expertise, experience, and resources, including financial, personnel, and tangible qualifications, as deemed desirable by the authority.

     §   -3  Public-private partnership authority; established.  (a)  There is established the public-private partnership authority, which shall be a public body corporate and politic and an instrumentality and agency of the State.  The authority shall be headed by a board of directors.  The authority shall be placed within the department of business, economic development, and tourism for administrative purposes.

     The authority shall:

     (1)  Identify projects that are suitable under this chapter;

     (2)  Conduct analyses, as appropriate;

     (3)  Enter into public-private agreements, as appropriate; and

     (4)  Provide the leadership for public-private partnership projects.

     (b)  The board of directors of the public-private partnership authority shall consist of six voting members.  The voting members shall include:

     (1)  The comptroller, or the first deputy to the comptroller;

     (2)  The director of finance;

     (3)  The director of business, economic development, and tourism;

     (4)  One member to be appointed by the speaker of the house of representatives;

     (5)  One member to be appointed by the president of the senate; and

     (6)  One member to be appointed by the governor, who shall be an expert on Hawaiian culture;

provided that the members 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 members appointed by the speaker of the house of representatives and the president of the senate 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.

     §   -4  Powers; generally.  (a)  Except as otherwise limited by this chapter, the 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 implement this chapter in connection with its projects;

     (5)  Make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this chapter;

     (6)  Manage projects by itself or in partnership with qualified persons or other governmental agencies;

     (7)  Receive, examine, and determine the acceptability of applications of qualified persons for public-private partnerships;

     (8)  Coordinate its activities with any federal or state programs;

     (9)  Grant options to purchase any project or to renew any lease entered into by the authority in connection with any of its projects, on the terms and conditions it deems advisable;

    (10)  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;

    (11)  Procure insurance against any loss in connection with its property and other assets and operations in amounts and from insurers as it deems desirable;

    (12)  Accept gifts or grants in any form from any public agency or any other source;

    (13)  Coordinate with any public agency; provided that the authority shall not rely on the Hawaii community development authority for land use, zoning, and permitting exemptions;

    (14)  Recommend to the appropriate public agency the acquisition of any privately owned real or personal property that may be appropriate for the purposes of this chapter; and

    (15)  Do all things necessary or proper to carry out the purposes of this chapter.

     (b)  The powers conferred herein shall be liberally construed to implement the purposes of this chapter.

     §   -5  Projects and plans.  (a)  The authority may develop plans and implement projects on behalf of public agencies, as appropriate.

     (b)  The authority may enter into a cooperative agreement with any public agency to implement projects on behalf of the public agency.

     (c)  The authority may enter into cooperative agreements with persons or public agencies when the powers, services, and capabilities of the persons or agencies are deemed necessary and appropriate.

     (d)  Prior to implementing any project, the authority shall submit the proposed plan for the project, together with any amendments, to and obtain the prior consent from any public agency affected by the proposed project.

     §   -6  Approval of projects.  All public-private partnership projects developed by the authority shall be approved by the board.

     §   -7  Transfer of management rights.  (a)  Notwithstanding chapter 171 or any provision of this chapter to the contrary, any public agency may transfer, subject to the approval of the board or executive of the public agency, management rights for projects under its jurisdiction to the authority for purposes of this chapter.

     (b)  If the authority finds that projects under the control and management of any public agency are suitable for its purposes under this chapter, the authority may lease properties from or agree to manage the properties of the agency having jurisdiction, upon terms and conditions as agreed to by the parties.

     (c)  Notwithstanding subsection (b) to the contrary, no property shall be leased to the 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.

     §   -8  Public-private partnership special fund.  (a)  There is established the public-private partnership special fund to be administered by the authority.

     (b)  The following shall be deposited into the public-private partnership special fund:

     (1)  Legislative appropriations to the special fund;

     (2)  Any revenues generated from public-private partnership projects, plans, and programs developed pursuant to this chapter, except as provided in sections    -9 and    -13;

     (3)  All interest earned or accrued on moneys deposited into the special fund; and

     (4)  Any other moneys made available to the fund.

     (c)  Moneys in the special fund shall be expended by the authority for the purposes of this chapter.

     §   -9  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.

     §   -10  Exemption from taxation.  The authority shall not be required to pay state taxes of any kind. 

     §   -11  Application of chapter.  All projects implemented pursuant to this chapter shall comply with the following:

     (1)  Chapter 6E, relating to historic preservation;

     (2)  Section 10-13.5, relating to ceded land revenues;

     (3)  Chapter 92, relating to the sunshine law;

     (4)  Chapter 104, relating to wage and hours;

     (5)  Section 171-64.7, relating to legislative approval for the sale or gifting of certain lands;

     (6)  Chapter 343, relating to the environmental review process;

     (7)  Chapter 444, relating to contractors; and

     (8)  Customary and traditional gathering rights and practices to the extent feasible pursuant to the state constitution and relevant statutes.

     §   -12  Reports and evaluation.  (a)  The authority shall submit a complete and detailed annual report of its plans and activities as follows:

     (1)  To the governor no later than twenty days prior to the convening of each regular session; and

     (2)  To the legislature, no later than sixty days after the submission of the report specified in paragraph (1).

     (b)  The board shall submit to the governor and the legislature, no later than twenty days prior to the convening of each regular session, an evaluation of the executive director appointed pursuant to section    -3.

     §   -13  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."

PART II

     SECTION 2.  After the adoption of rules pursuant to section    -4(a)(4), Hawaii Revised Statutes, the public-private partnership authority shall initiate a pilot project pursuant to chapter    , Hawaii Revised Statutes, for the development of a film production facility on state lands in Kapolei and a main-street project on state lands in Wahiawa, city and county of Honolulu.  The government entities involved in the implementation of this pilot project shall include the department of accounting and general services, the department of education, and the judiciary.

     SECTION 3.  The public-private partnership authority shall include in its annual report required pursuant to section    ‑12, Hawaii Revised Statutes, to the governor and the legislature a detailed report on the status of the pilot project.

     The public-private partnership authority shall notify the governor and the legislature upon the completion of the pilot project and, within ninety days of the pilot project's completion, submit a report to the governor and the legislature containing a review and evaluation of the project and any recommendations to improve the effectiveness of chapter      , Hawaii Revised Statutes.

     SECTION 4.  Until the completion of the pilot project identified in this part, the public-private partnership authority shall neither plan nor implement any projects other than the pilot project nor enter into any agreements or contracts related to the planning or implementation of any projects other than the pilot project.

PART III

     SECTION 5.  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 2013-2014 and the same sum or so much thereof as may be necessary for fiscal year 2014-2015 for:

     (1)  The establishment and operation of the public-private partnership authority pursuant to part I of this Act; and

     (2)  The funding for         staff positions.

     The sums appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.

     SECTION 6.  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 7.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 8.  This Act shall take effect on July 1, 2013; provided that part II shall be repealed on January 1, 2016.



 

Report Title:

DBEDT; Public-Private Partnership Authority; Pilot Project; Appropriation

 

Description:

Establishes the public-private partnership authority.  Requires the PPPA to initiate a pilot project.  Appropriates an unspecified sum for the PPPA.  Effective 07/01/2013.  (SD1 Proposed)

 

 

 

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

 

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