Report Title:

Legislative Power to Set Airport and Harbor Rates

Description:

Gives legislature the power to set all airport and harbor rates and fees.

HOUSE OF REPRESENTATIVES

H.B. NO.

87

TWENTY-THIRD LEGISLATURE, 2005

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to transportation.

 

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

SECTION 1. Chapter 266, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§266-    Rates and charges; power of legislature to fix. The legislature shall have the power to fix from time to time rates and charges for:

(1) Services rendered in mooring commercial vessels;

(2) The use of commercial moorings belonging to or controlled by the State;

(3) Wharfage or demurrage;

(4) Warehouse space, office space, and storage space for freight, goods, wares, and merchandise; and

(5) The use of derricks or other equipment belonging to the State or under the control of the department.

The legislature may also make other charges, including toll or tonnage charges, on freight passing over or across docks, wharves, piers, quays, bulkheads, or landings."

SECTION 2. Section 261-7, Hawaii Revised Statutes, is amended:

1. By amending subsection (b) to read:

"(b) Except as otherwise provided in this section, in each case mentioned in subsection (a)(1), (2), (3), and (4), the department may establish the terms and conditions of the contract, lease, license, or other arrangement, and [may] the legislature shall fix the charges, rentals, or fees for the privileges, services, or things granted, conferred, or made available, for the purpose of meeting the expenditures of the statewide system of airports set forth in section 261-5(a), which includes expenditures for capital improvement projects approved by the legislature. [Such] The charges shall be reasonable and uniform for the same class of privilege, service, or thing."

2. By amending subsection (e) to read:

"(e) The [department] legislature may fix and regulate, from time to time, reasonable landing fees for aircraft, including the imposition of landing surcharges or differential landing fees, and other reasonable charges for the use and enjoyment of the airports and the services and facilities furnished by the department in connection therewith, including the establishment of a statewide system of airports landing fees, a statewide system of airports support charges, and joint use charges for the use of space shared by users, which fees and charges may vary among different classes of users such as foreign carriers, domestic carriers, inter-island carriers, air taxi operators, helicopters, and such other classes as may be determined by the director, for the purpose of meeting the expenditures of the statewide system of airports set forth in section 261-5(a), which includes expenditures for capital improvement projects approved by the legislature.

[In setting airports rates and charges, including landing fees, the] The director may enter into contracts, leases, licenses, and other agreements with aeronautical users of the statewide system of airports containing such terms, conditions, and provisions as the director deems advisable.

If the director has not entered into contracts, leases, licenses, and other agreements with any or fewer than all of the aeronautical users of the statewide system of airports prior to the expiration of an existing contract, lease, license, or agreement, the [director] legislature shall set and impose rates, rentals, fees, and charges pursuant to this subsection without regard to the requirements of chapter 91; provided that a public informational hearing shall be held on the rates, rentals, fees, and charges.

The [director] legislature shall develop rates, rentals, fees, and charges in accordance with a residual methodology so that the statewide system of airports shall be, and always remain, self-sustaining. The rates, rentals, fees, and charges shall be set at such levels as to produce revenues which, together with aviation fuel taxes, shall be at least sufficient to meet the expenditures of the statewide system of airports set forth in section 261-5(a), including expenditures for capital improvement projects approved by the legislature, and to comply with covenants and agreements with holders of airport revenue bonds.

The [director] legislature may develop and formulate methodology in setting the various rates, rentals, fees, and charges imposed and may determine usage of space, estimate landed weights, and apply such portion of nonaeronautical revenue deemed appropriate in determining the rates, rentals, fees, and charges applicable to aeronautical users of the statewide system of airports.

The rates, rentals, fees, and charges determined by the [director] legislature in the manner set forth in this subsection shall be those charges payable by the aeronautical users for the periods immediately following the date of expiration of the existing contract, lease, license, or agreement. [If fees are established pursuant to this section, the department shall prepare a detailed report on the circumstances and rates and charges that have been established, and shall submit the report to the legislature no later than twenty days prior to the convening of the next regular session.

If a schedule of rates, rentals, fees, and charges developed by the director in accordance with this section is projected by the department to produce revenues which, together with aviation fuel taxes, will be in excess of the amount required to meet the expenditures of the statewide system of airports set forth in section 261-5(a), including expenditures for capital improvement projects approved by the legislature, and to comply with covenants and agreements with holders of airport revenue bonds, the department shall submit the schedule of rates, rentals, fees, and charges to the legislature prior to the convening of the next regular session of the legislature. Within forty-five days after the convening of the regular session, the legislature may disapprove any schedule of rates, rentals, fees, and charges required to be submitted to it by this section by concurrent resolution. If no action is taken by the legislature within the forty-five-day period the schedule of rates, rentals, fees, and charges shall be deemed approved. If the legislature disapproves the schedule within the forty-five-day period, the director shall develop a new schedule of rates, rentals, fees, and charges in accordance with this section within seventy-five days of the disapproval. Pending the development of a new schedule of rates, rentals, fees, and charges, the schedule submitted to the legislature shall remain in force and effect.]

Notwithstanding any other provision of law to the contrary, the department may waive landing fees and other aircraft charges established under this section at any airport owned or controlled by the State whenever:

(1) The governor declares a state of emergency; and

(2) The department determines that the waiver of landing fees and other charges for the aircraft is consistent with assisting in the delivery of humanitarian relief to disaster-stricken areas of the State."

3. By amending subsection (g) to read:

"(g) The [department] legislature from time to time may establish developmental rates for buildings and land areas used exclusively for general aviation activities at rates not less than fifty per cent of the fair market rentals of the buildings and land areas and may restrict the extent of buildings and land areas to be utilized."

SECTION 3. Section 261-15.6, Hawaii Revised Statutes, is amended to read as follows:

"[[]§261-15.6[]] Annual registration fee. The [department] legislature shall assess and the department shall collect an annual registration fee of [$10] $     from each operator of aircraft required to be registered under section 261-15.5."

SECTION 4. Section 261-16, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Licenses. Except as provided in subsection (d), the department may provide for the licensing of airports and the annual renewal of such licenses. It may charge license fees set by the legislature not exceeding [$100] $      for each original license, and not exceeding [$10] $      for each renewal thereof. Upon the [promulgation] adoption of a rule [or regulation] providing for the licensing, the department shall with reasonable dispatch, upon receipt of an application for an original license and the payment of the duly required fee therefor, issue an appropriate license if it is satisfied that the airport conforms to minimum standards of safety and that safe air traffic patterns can be worked out for the airport and for all existing airports and approved airport sites in its vicinity. All licenses shall be renewable annually upon payment of the fees prescribed. Licenses and renewals thereof may be issued subject to any reasonable conditions that the department may deem necessary to effectuate the purposes of this section. The department [may], after notice and opportunity for hearing to the licensee, may revoke any license or renewal thereof, or refuse to issue a renewal, when it shall reasonably determine (1) that there has been an abandonment of the airport as such, or (2) that there has been a failure to comply with the conditions of the license or renewal thereof, or (3) that because of change of physical or legal conditions or circumstances, the airport has become either unsafe or unusable for the aeronautical purposes for which the license or renewal was issued. It shall be unlawful for any person to operate an airport without an appropriate license for such, as may be duly required by rule [or regulation] issued pursuant to this subsection."

SECTION 5. Section 266-2, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The department of transportation shall:

(1) Have and exercise all the powers and shall perform all the duties which may lawfully be exercised by or under the State relative to the control and management of commercial harbors, commercial harbor and waterfront improvements, ports, docks, wharves, piers, quays, bulkheads, and landings belonging to or controlled by the State, and the shipping using the same;

(2) Have the authority to use and permit and regulate the use of the commercial docks, wharves, piers, quays, bulkheads, and landings belonging to or controlled by the State for receiving or discharging passengers and for loading and landing merchandise, with a right to collect wharfage and demurrage thereon or therefor;

[(3) Subject to all applicable provisions of law, have the power to fix and regulate from time to time rates and charges for:

(A) Services rendered in mooring commercial vessels;

(B) The use of commercial moorings belonging to or controlled by the State;

(C) Wharfage or demurrage;

(D) Warehouse space, office space, and storage space for freight, goods, wares and merchandise; and

(E) The use of derricks or other equipment belonging to the State or under the control of the department;

(4) Make other charges including toll or tonnage charges on freight passing over or across docks, wharves, piers, quays, bulkheads, or landings;

(5)] (3) Appoint and remove clerks, harbor agents and their assistants, and all such other employees as may be necessary, and to fix their compensation;

[(6)] (4) Adopt rules pursuant to chapter 91 and not inconsistent with law; and

[(7)] (5) Generally have all powers necessary to fully carry out this chapter."

SECTION 6. Section 266-13, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

"(a) All watercraft:

(1) Lying idle alongside any wharf, pier, bulkhead, quay, or landing belonging to or controlled by the State; or

(2) Discharging or receiving freight or passengers on or from any wharf, pier, bulkhead, quay, or landing belonging to or controlled by the State, while made fast or lying alongside of the wharf, pier, bulkhead, quay, or landing;

shall pay to the department of transportation such rates of dockage as shall be fixed by the [department.] legislature.

(b) All watercraft that receive or discharge freight or passengers:

(1) From or upon any wharf, pier, bulkhead, quay, or landing, by means of boats, lighters, or otherwise, while lying at anchor or under steam in any bay, harbor, or roadstead; or

(2) While lying in any slip or dock belonging to or controlled by the State, but not made fast to or lying alongside any wharf, pier, bulkhead, quay, or landing;

shall pay such rates of dockage as shall be fixed by the [department.] legislature."

SECTION 7. Section 266-14, Hawaii Revised Statutes, is amended to read as follows:

"§266-14 Demurrage, lien, foreclosure. When any freight has remained upon any wharf, pier, bulkhead, quay, or landing for more than twenty-four hours, the [department of transportation,] legislature, in its discretion, may make demurrage charges for each subsequent day or part thereof that in its opinion are just and equitable.

The amount payable by any shipper or consignee for demurrage or other charges in respect of any freight shall be a lien on the freight, and the department may take and hold possession of any freight to secure the payment of the amount, and for the purpose of the lien, shall be deemed to have possession of the freight until the amount has been paid. If the charges due on freight are not paid within thirty days after being landed, the department may sell the freight at public auction and out of the proceeds retain the charges accrued, including the costs of public notice and sale, which latter shall be prorated upon the articles or lots sold in proportion to the amount received for each article or lot. Before any sale is made, the department shall give public notice of the time and place of sale at least once each week for three successive weeks in the county in which the place is located to which the freight is consigned or addressed, or by posting this notice at the courthouses of the district in which the place is located to which the freight is consigned or addressed. The notice shall contain a description of the property as near as may be, the name of the owner or consignee if known, the amount of charges due thereon, together with the time and place of sale. Any freight in its nature perishable may be sold by the department either at public or private sale as soon as its condition makes a sale necessary.

The surplus, if any, received from the sale, after paying any accrued freight charges on the freight, shall be paid to the owner or consignee, if known, and if not known, shall be deposited in the state treasury as a special fund. The fund shall consist of the surplus received from sales made under this section. At any time within one year thereafter, upon written demand and proof of identity satisfactory to the director, the director of finance shall pay the owner thereof the surplus. If this surplus is not claimed by the owner within one year after the date of sale it shall thereupon escheat to the State, and be transferred to the general fund of the State."

SECTION 8. Section 266-17, Hawaii Revised Statutes, is amended to read as follows:

"§266-17 Rates, how fixed. (a) The [department of transportation] legislature shall adjust, fix, and enforce the rates assessable and chargeable by it in respect to dockage, wharfage, demurrage, and other rates and fees pertaining to harbors, wharves, and properties managed and operated by it so as to produce from the rates and fees, in respect to all harbors, wharves, and other properties, except those that are principally used for recreation or the landing of fish, revenues sufficient to:

(1) Pay when due the principal of and interest on all bonds and other obligations for the payment of which the revenue is or has been pledged, charged, or otherwise encumbered, or which are otherwise payable from the revenue or from a special fund maintained or to be maintained from the revenue, including reserves therefor, and to maintain the special fund in an amount at least sufficient to pay when due all bonds or other revenue obligations and interest thereon, which are payable from the special fund, including reserves therefor;

(2) Provide for all expenses of operation and maintenance of the properties, including reserves therefor, and the expenses of the department in connection with operation and maintenance; and

(3) Reimburse the general fund of the State for all bond requirements for general obligation bonds which are or have been issued for harbor or wharf improvements, or to refund any of the improvement bonds, excluding bonds, the proceeds of which were or are to be expended for improvements which are or will be neither revenue producing nor connected in their use directly with revenue producing properties.

(b) When weather, road closures due to special events, or road repairs do not permit the loading or unloading of passengers at Kewalo Basin, cruise boats holding a Kewalo Basin sublease approved by the State shall be allowed to use Honolulu Harbor facilities on a space available basis, and the fees for the use of facilities shall be [in accordance with the Hawaii administrative rules of the department of transportation] set by the legislature relating to fees for use of facilities for private gain."

SECTION 9. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 10. This Act shall take effect upon its approval.

INTRODUCED BY:

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