THE SENATE

S.B. NO.

215

TWENTY-SEVENTH LEGISLATURE, 2013

S.D. 3

STATE OF HAWAII

 

 

 

 

 

 

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 leadership for the facilitation of 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, including and not limited to:

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

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

     "Qualified person" means any individual, partnership, corporation, not-for-profit organization, 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 partnership 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 five voting members and one ex officio, non-voting member.  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; and

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

The ex officio, non-voting member shall be the aha moku advisory committee member of the moku in which the project is sited.

     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.  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)  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;

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

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

    (12)  Coordinate with any public agency;

    (13)  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

    (14)  Do all things necessary or proper to carry out 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 approval of the board or executive of any public agency affected.

     §   -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 revenues.  Any revenues generated from public-private partnership projects and plans developed pursuant to this chapter shall be deposited into the general fund.

     §   -9  Exemption from taxation.  The authority shall not be required to pay state taxes of any kind.

     §   -10  Application of chapter.  The authority and all projects implemented under this chapter shall comply with all state laws.

     §   -11  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 as 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."

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 pilot projects pursuant to chapter    , Hawaii Revised Statutes, as follows:

     (1)  A film production facility on state lands on the most populous island of a county with a population between one hundred thousand and one hundred seventy-five thousand;

     (2)  A main-street project on state lands in Wahiawa, city and county of Honolulu; and

     (3)  One county initiated project.

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

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

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

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 of       staff positions.

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

PART IV

     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, 2050, and shall be repealed on July 1, 2018.

 


 


 

Report Title:

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

 

Description:

Establishes the public-private partnership authority (PPPA).  Requires the PPPA to initiate pilot projects.  Appropriates an unspecified sum for the PPPA.  Effective 07/01/2050.  Repeals 07/01/2018.  (SD3)

 

 

 

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