Bill Text: HI SB2798 | 2016 | Regular Session | Introduced

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Bill Title: Port Authority; Establishment; Appropriation ($)

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced - Dead) 2016-02-04 - The committee on TRE deferred the measure. [SB2798 Detail]

Download: Hawaii-2016-SB2798-Introduced.html

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THE SENATE	S.B. NO.	2798
TWENTY-EIGHTH LEGISLATURE, 2016
STATE OF HAWAII

A BILL FOR AN ACT

 

 

relating to a port authority.

 

 

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

 

     SECTION 1.  The legislature finds that Hawaii's sea and air transportation planning, management, and development functions are currently spread out among a number of agencies, including the department of transportation's harbors and airports divisions and the department of land and natural resources' boating and ocean recreation program, as well as the department of health with respect to environmental concerns, and the office of Hawaiian affairs when ceded lands issues arise.

     This multijurisdictional situation has resulted in inefficiencies and conflicts that are difficult to resolve between agencies.  In addition, this situation sometimes leads to conflicting plans of action among the different agencies seeking to implement differing goals.

     The economic well-being of the State depends in part on the efficient use of all of its air and sea transportation resources, which will enhance and complement efforts to improve Hawaii's economy.  The legislature believes that coordinated planning and development of sea and air transportation would be implemented more effectively by a single entity having overall consolidated jurisdiction.

     Nearly a decade ago, in response to Senate Concurrent Resolution No. 214, H.D. 1 (1996), the governor convened the Hawaii maritime industry policy advisory task force within the office of the governor to examine several issues including "establishing a port authority to implement and administer maritime policy under the port authority."  Subsequently, the task force submitted to the legislature its report that determined that the advantages of establishing a port authority outweighed the disadvantages of doing so.  The advantages of establishing a port authority include:

     (1)  Providing an institutional mechanism to promote efficient allocation of waterfront resources;

     (2)  Focusing control and responsibility for waterfront resources within a single entity, thereby eliminating multi-agency oversight and jurisdiction;

     (3)  Providing an appropriate forum for all affected interests;

     (4)  Increasing efficiency in land utilization and related lease processes;

     (5)  Streamlining administrative processes;

     (6)  Making possible more responsive planning;

     (7)  Increasing financial flexibility; and

     (8)  Increasing responsiveness to customer needs and economic demands.

     In addition to the findings of the 1996 task force, the legislature finds that the establishment of a port authority will assist in the following important statewide objectives:

     (1)  Increase security for the state.  The legislature finds that coordination of all state security interests for airports and harbors at entry-points into the state is in the best interest of the state;

     (2)  Improve the management of and increase funding for state harbors.  A port authority will improve not only the management of the State's harbors, but will allow the State to combine the resources of both the airports and harbors divisions of the department of transportation, thereby allowing the State to issue larger bonds to raise more money for the improvement of harbor infrastructure;

     (3)  Improve administrative efficiency.  As noted by the 1996 task force, consolidating air and sea transportation functions in a single entity will help to streamline administrative processes, thereby making possible more responsive planning, increasing financial flexibility, and increasing responsiveness to customer needs and economic demands;

     (4)  Coordinate environmental issues affecting the airports and harbors, particularly relating to alien invasive species.  A port authority will be able to oversee everything that enters the state by air or sea, thereby allowing that entity to serve as the agency responsible for comprehensive alien invasive species protection and control; and

     (5)  Increase economic opportunities to the state, particularly relating to the cruise ship industry.  The establishment of a port authority will enable the State to develop improved infrastructure and issue bonds to assist cruise ships and other industries that form a logical nexus to the sea and air transportation sectors.

     The legislature finds that the rational allocation and administration of scarce and increasingly valuable waterfront and airport resources through the establishment of a port authority is vital for the well-being of the people and the economy of the state.

     Accordingly, the purpose of this Act is to establish a three-year Hawaii port authority pilot project, an independent public entity to set statewide policy on all matters relating to harbors and airports in Hawaii, and to transfer the functions, duties, and powers exercised by the department of transportation over commercial harbors and airports to the Hawaii port authority.

     It is the intent of the legislature that the functions, duties, and staff of the departments and agencies currently charged with the responsibilities to be administered by the port authority will be eventually transferred to a permanent agency. 

     SECTION 2.  (a)  The department of budget and finance shall established a three-year pilot project to be known as the Hawaii port authority to serve as an independent public entity to set statewide policy on all matters relating to harbors and airports in Hawaii.

     (b)  As used in this Act, unless the context indicates otherwise:

     "Administrator" means the administrator of the port authority.

     "Airport" means any area of land or water that is used, or intended for use, for the landing and taking-off of aircraft, and any appurtenant areas that are used, or intended for use, for airport buildings or other airport facilities or rights-of-way, including approaches, together with all airport buildings and facilities located thereon.

     "Commercial harbor" means a harbor or offshore mooring facility that is intended primarily for the movement of commercial cargo, and passenger and fishing vessels entering, leaving, or traveling within the state, and facilities and supporting services for the loading, off-loading, and handling of cargo, passengers, and vessels.

     "Port authority" means the Hawaii port authority.

     (c)  The Hawaii port authority, shall be a body corporate and a special political subdivision of the State for the purposes of this Act.  The port authority shall be placed within the department of budget and finance for administrative purposes only.

     (d)  The port authority shall consist of seven voting members.  The administrator shall be an ex-officio voting member of the port authority.  Two members shall be appointed by the governor pursuant to section 26-34, Hawaii Revised Statutes, except as specifically provided to the contrary in this section.  Two members shall be appointed by the governor from a list of            names provided by the president of the senate; and two members shall be appointed by the governor from a list of            names provided by the speaker of the house of representatives; provided that:

     (1)  Those members appointed by the governor from lists provided by the president of the senate and the speaker of the house of representatives shall be selected from lists of prospective appointees recommended by the county councils;

     (2)  The governor shall stagger the terms of the members appointed from lists provided by the president of the senate and the speaker of the house of representatives so that there will always be one member from each county in office at all times; and

     (3)  Appointment of the members by the governor from lists provided by the senate and the house of representatives shall be exempt from confirmation by senate.

     (e)  All members, except for the administrator, shall continue in office until their respective successors have been appointed and, if required, confirmed by the senate.  The port authority shall establish bylaws providing for the automatic succession of a deputy administrator to the vacant post of administrator on an interim basis and until a permanent administrator is appointed.  Except as provided in this Act, no member appointed under this section shall be an officer or employee of the State or the counties.

     (f)  The port authority shall be headed by a single executive to be known as the administrator of the port authority.

     (g)  The administrator:

     (1)  Shall report directly to the governor;

     (2)  Shall be appointed by the vote of not less than four members of the port authority, excluding the administrator;

     (3)  Shall be a voting member of the port authority;

     (4)  May be removed from office by a vote of not less than four members of the port authority, excluding the administrator;

     (5)  Shall have the powers described in this Act and as may be delegated by the port authority;

     (6)  Shall appoint, with the majority consent of the members voting thereon, a division chief for the port authority's airport responsibilities and a division chief for the port authority's harbor responsibilities;

     (7)  May appoint, with the majority consent of the members voting thereon, deputy administrators as the administrator deems appropriate; and

     (8)  May hire staff and employees to fill positions that may be provided for in the port authority's annual budget. 

     (h)  Each division chief shall exercise and discharge the division chief's respective responsibilities, whether or not in the administrator's presence, and shall not exercise the responsibilities of the other division chief.  Each division chief shall report to, and be under the supervision of, the administrator. 

     (i)  Each deputy administrator shall exercise those powers that may be delegated by the administrator, whether or not in the administrator's presence. 

     (j)  The functions, duties, and compensation of all positions, and the discharge of any staff or employee hired by the administrator, shall be provided for in the bylaws of the port authority.

     (k)  All employees of the port authority shall be exempt from chapter 76, Hawaii Revised Statutes.

     (l)  Except as otherwise provided in this Act, the port authority:

     (1)  Shall exercise power and control over airports, air navigation facilities, buildings, and other facilities belonging to, or controlled by, the port authority to provide for:

         (A)  The landing, taking-off, and servicing of aircraft, and the loading and unloading of passengers and cargo;

         (B)  The comfort, accommodation, and convenience of air travelers; and

         (C)  Any matter related to the foregoing;

     (2)  Shall exercise power and control over all commercial harbors and roadsteads, and commercial harbor and waterfront improvements belonging to, or controlled by, the port authority, all vessels and shipping within the commercial harbors and roadsteads, and any matter related to the foregoing;

     (3)  Shall exercise power and control over ferries as it may deem proper in carrying out its duties concerning water transportation in the State;

     (4)  Shall:

         (A)  Exercise general supervision over aeronautics within the State and, in connection therewith, encourage, foster, and assist in the development of aeronautics in the State, and encourage the establishment of airports and air navigation facilities;

         (B)  Cooperate with and assist the federal government and other persons in the development of aeronautics; and

         (C)  Seek to coordinate the aeronautical activities of the State with those activities of the federal government;

     (5)  May use the facilities and services of any department, board, commission, or agency of the State or counties;

     (6)  May sue and be sued;

     (7)  Shall have a seal and may alter the seal at its pleasure;

     (8)  May make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this Act;

     (9)  Shall establish bylaws for its organization and internal management;

    (10)  Shall establish bylaws for the adoption of rules and shall adopt rules, through the administrator, to effectuate this Act;

    (11)  Shall adopt an annual budget for its operations and maintenance program and its capital facilities program;

    (12)  Shall appoint officers, agents, and employees through the administrator, prescribe their duties and qualifications, and fix their salaries;

    (13)  May own, sell, lease, hold, clear, improve, and rehabilitate real, personal, or mixed property, and assign, exchange, transfer, convey, lease, sublease, or encumber any airport or commercial harbor, or any project, improvement, or facility related thereto;

    (14)  Shall develop, construct, reconstruct, rehabilitate, improve, alter, or repair, or provide for the development, construction, reconstruction, rehabilitation, improvement, alteration, or repair of, any airport or commercial harbor, or any project, improvement, or facility related thereto, and designate a qualified person as its agent for that purpose; and own, hold, assign, transfer, convey, exchange, lease, sublease, or encumber any airport or commercial harbor or any project, improvement, or facility related thereto;

    (15)  Shall arrange or initiate appropriate action for the planning, replanning, opening, grading, relocating, or closing of streets, roads, roadways, alleys, easements, piers, or other places; the furnishing of facilities; the acquisition of property or property rights; and the furnishing of property, development rights, or services in connection with any airport or commercial harbor, or any project, improvement, or facility related thereto;

    (16)  May grant options or renew any lease entered into by it in connection with any project, on terms and conditions as it deems advisable;

    (17)  May provide advisory, consultative, training, and educational services; technical assistance; and advice, to any person, either public or private, to carry out the purposes of this Act, and engage the services of consultants on a contractual basis for rendering professional and technical assistance and advice;

    (18)  Shall 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, or provide for self-insurance;

    (19)  May accept and receive gifts or grants in any form from any person, public entity, or source; provided that the grants and gifts shall be used for port authority purposes;

    (20)  May pledge or assign all or any part of the moneys, fees, rents, charges, or other revenues and proceeds derived by the port authority from the proceeds of insurance or condemnation awards for the loss of revenues or incurring of costs and expenses because of any action taken by the port authority;

    (21)  Shall impose, prescribe, and collect rates, rentals, fees, or charges for the lease, use, and services of its airport and commercial harbor facilities at least sufficient to pay the costs of operation, maintenance, and repair, if any, and the required payments of the principal of, and interest on, all bonds issued or assumed by the port authority and reserves therefor;

    (22)  May engage in economic development programs and contract with the department of business, economic development, and tourism or nonprofit corporations in the furtherance of economic development;

    (23)  May take all actions necessary under emergencies such as hurricanes, tsunamis, and other natural disasters;

    (24)  Shall plan, construct, operate, and maintain all commercial harbor and airport facilities in the state, including, but not limited to, the acquisition and use of lands necessary to stockpile dredged spoils without the approval of county agencies, notwithstanding any other law to the contrary;

    (25)  May issue revenue bonds and special facility revenue bonds in its name pursuant to chapter 39 without limitations, but not in excess of such principal amounts as are necessary for its purposes or specified in covenants with bondholders;

    (26)  May invest and secure its moneys in accordance with chapters 36 and 38, Hawaii Revised Statutes;

    (27)  May take public and private property for use in furthering any of the purposes of the port authority or as otherwise provided by law; provided that all proceedings for condemnation shall be conducted in accordance with chapter 101, Hawaii Revised Statutes;

    (28)  May provide compensation, allowance, or other assistance to any person for relocation or displacement caused by the acquisition of land for airport or commercial harbor purposes;

    (29)  May hire or contract law enforcement personnel, notwithstanding any other law to the contrary;

    (30)  May use funds appropriated to the port authority to fund services on a seven days a week basis regardless of any appropriation stating otherwise; and

    (31)  May do any and all things necessary to carry out its purposes and exercise the powers given to it in this Act.

     (m)  The port authority shall cease to exist on June 30, 2019.

     SECTION 3.  Jurisdiction over aeronautics, airports, harbors, and maritime functions, including airport functions under the department of transportation's airports division, harbor and maritime functions under the department of transportation's harbors division, and the department of land and natural resources' boating and ocean recreation program, shall be transferred to the port authority on July 1, 2018.

     SECTION 4.  At least twenty days prior to the convening of the regular session of 2017, the department of transportation shall submit to the legislature a report recommending statutes that must be amended to implement the port authority pilot project under this Act.

     SECTION 5.  At least twenty days prior to the convening of the regular sessions of 2018 and 2019, the department of budget and finance shall submit a report to the legislature on the status of implementing the Hawaii port authority pilot project.  The 2019 report shall also contain a recommendation on whether the pilot project should be made permanent.

     SECTION 6.  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 2016-2017 for implementation and operation of the Hawaii port authority pilot project on a seven days a week basis.

     The sum appropriated shall be expended by the department of budget and finance for the purposes of this Act.

     SECTION 7.  It is the legislature's intent that this Act not jeopardize the receipt of any federal aid nor impair the obligation of the State or any agency thereof to the holders of any bond issued by the State or by any such agency, 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 8.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

     SECTION 9.  This Act shall be liberally construed to accomplish the purposes set forth herein.  If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity shall not affect the other provisions or applications of this Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

     SECTION 10.  This Act shall take effect July 1, 2016, and shall be repealed on June 30, 2019.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

Port Authority; Establishment; Appropriation

 

Description:

Establishes a three-year Hawaii Port Authority pilot project.  Empowers the Authority to administer a statewide system of harbors and airports.  Appropriates moneys for the pilot project.

 

 

 

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