H.B. NO.



















     SECTION 1.  Act 200, Session Laws of Hawaii 2008, authorized the department of transportation to issue harbor revenue bonds for harbor capital improvements authorized by Act 200 for certain specified capital improvement projects.  The capital improvements were part of the commercial harbors modernization plan.  Act 200 also placed into statute the harbors modernization plan which was then repealed by Act 152, Session Laws of Hawaii 2011.

     Act 200 also transferred jurisdiction over Hana harbor to the department of transportation, excluding the small boat ramp facility which remained under the jurisdiction of the department of land and natural resources (section 266-1.6, Hawaii Revised Statutes).

     The legislature finds that the appropriations for capital improvement projects in Act 200 were not released and the funding has since lapsed.  Act 200 provided for a lapse date of funding on June 30, 2012, unless unencumbered as of that date.  An additional reason for the lack of any funding is the repeal of the harbors modernization plan by Act 152.  The legislature further finds that the lack of funding for harbor improvements is contrary to Act 200, which provides in pertinent part in section 1 as follows:

     "To meet the economic needs of the state, the harbors division of the department of transportation must provide suitable harbor facilities and berthing piers, which in turn ensures the efficient and timely delivery and shipment of goods imported into the state.  Ocean surface transportation is our state's lifeline.  It remains the only viable means to service the largest share of Hawaii's economic needs.  However, Hawaii's aging commercial harbor system has not kept pace with our growing economy, and Hawaii's commercial ports statewide are experiencing competition for berthing rights for cargo, fuel, and cruise ship activities, and severe congestion in harbor facilities.  Harbor users, the state administration, and the legislature recognize that it is now extremely critical to upgrade existing port facilities and develop harbor improvements in an expedited manner."

     The purpose of this Act is to authorize issuance of general obligation bonds for certain harbor capital improvement projects.

     SECTION 2.  The department of transportation is authorized to issue harbor revenue bonds for harbor capital improvement projects authorized in section 3 of this Act and designated to be financed by revenue bond funds or by general obligation bond funds with debt service cost to be paid from special funds, in such principal amount as shall be required to yield the amounts appropriated for such capital improvement program projects, and, if so determined by the department and approved by the governor, such additional amounts as may be deemed necessary by the department to pay interest on such revenue bonds during the estimated construction period of the capital improvement project for which such harbor revenue bonds are issued to establish, maintain, or increase reserves for the harbor revenue bonds or harbor revenue bonds heretofore authorized (whether authorized and issued or authorized and still unissued), and to pay the expenses of issuance of such bonds.  The aforementioned harbor revenue bonds shall be issued pursuant to part III of chapter 39, Hawaii Revised Statutes, as the same may be amended from time to time.  The principal of and interest on harbor revenue bonds, to the extent not paid from the proceeds of such bonds, shall be payable solely from and secured solely by the revenues derived from harbors and related facilities under the ownership of the State or operated and managed by the department, including rents, mooring, wharfage, dockage, pilotage fees, and other fees or charges presently or hereafter derived from or arising through the ownership, operation, and management of harbor and related facilities and the furnishing and supplying of the services thereof.  The expenses of the issuance of such harbor revenue bonds shall, to the extent not paid from the proceeds of such bonds, be paid from the harbor special fund.

     The governor, in the governor's discretion, is authorized to use the harbor special fund to finance those projects authorized in section 3 of this Act where the method of financing is designated to be by harbor revenue bond funds.

     SECTION 3.  The following sums, or so much thereof as may be sufficient to accomplish the purposes designated herein, are hereby appropriated or authorized, as the case may be, from the harbor revenue bond funds for the fiscal years beginning July 1, 2013, and ending June 30, 2017, and all intervening fiscal years.  The sums appropriated shall be expended by the department of transportation for the purposes of this Act.

1.   HMP – Kapalama military reservation improvements, Honolulu harbor

     Design and construction for the development of a new container terminal facility

          Design                     $26,900,000

          Construction               $ 3,000,000

          Total funding                             $29,900,000

2.   HMP – Kalaeloa Barbers Point harbor infrastructure improvements, Oahu

     Design of utility and infrastructure improvements

     Design                             $300,000

     Total funding                                     $300,000

3.   HMP – Kalaeloa Barbers Point harbor fuel pier improvements, Oahu

     Design of new fuel pier and other site related improvements

          Design                      $6,300,000

          Total Funding                              $6,300,000

4.   HMP – Pier 4 interisland cargo terminal, Hilo harbor, Hawaii

     Design of additional interisland cargo terminal areas including a pier, yard, roadways, and utilities

          Design                     $13,400,000

          Total funding                             $13,400,000

5.   HMP – Kahului harbor land acquisition and improvements, Maui

     Purchase additional land and subsequent design of improvements for the acquired land

          Land                       $15,000,000

          Design                     $ 2,000,000

          Total funding                             $17,000,000

6.   HMP – Hana harbor, Maui

     Development of infrastructure, demolition, as necessary, and expansion of facilities

          Total funding                             $20,000,000

7.   HMP – West harbor barge-ferry slip, Kahului harbor, Maui

     Design for a new west harbor barge-ferry slip and associated site work improvements

          Design                      $8,000,000

          Total funding                              $8,000,000

8.   HMP – West harbor dredging and breakwater, Kahului harbor, Maui

     Design for west harbor breakwater, dredging and associated improvements

          Design                      $3,000,000

          Total funding                              $3,000,000

9.   HMP – West harbor cruise terminal Kahului harbor, Maui

     Design of a cruise terminal including paving, utilities, security, and other site work improvements

          Design                      $3,000,000

          Total funding                              $3,000,000

10.  HMP – East harbor breakwater, Kahului harbor, Maui

     Design of the east harbor breakwater and related improvements

          Design                      $3,000,000

          Total funding                              $3,000,000

11.  HMP – Pier 2 improvements, Kahului harbor, Maui

     Design of improvements to the pier including strengthening, bollard replacement, dredging, and environmental permitting

          Design                        $500,000

          Total funding                                $500,000

12.  HMP – Kawaihae harbor development plan, Hawaii

     Development plan for improving new terminal cargo facilities at Kawaihae harbor

          Plans                         $500,000

          Total funding                                $500,000

13.  HMP – Pier 2 terminal improvements, Kawaihae harbor, Hawaii

     Design and construction of terminal improvements including and not limited to paving, utilities, relocation of the harbor agent's office, and interim ferry improvements

          Design                     $ 5,000,000

          Construction               $21,000,000

          Total funding                             $26,000,000

14.  HMP – Pier 4, Kawaihae harbor, Hawaii

     Design of a multi user pier 4 and associated site work

          Design                      $9,000,000

          Total funding                              $9,000,000

15.  HMP – Multi User Pier 4, Nawiliwili harbor

     Design of new pier improvements and related site and utility work

          Design                        $300,000

          Total funding                                $300,000

16.  HMP – Construction management support, statewide

     Construction consultant services during construction of harbor modernization plan projects at harbor facilities statewide

          Construction                $2,400,000 

          Total funding                              $2,400,000

17.  HMP – Harbors division capital improvement program staff cost, statewide costs related to wages and fringes for permanent harbor modernization plan project funded positions

          Planning                    $1,735,000

          Total funding                              $1,735,000

     The appropriations made for the capital improvement projects authorized by this Act shall not lapse at the end of the fiscal biennium for which the appropriation is made; provided that all moneys from the appropriation unencumbered as of June 30, 2016, shall lapse as of that date.

     SECTION 4.  This Act shall take effect on July 1, 2013.












Report Title:

Harbors; Capital Improvement Projects; Revenue Bond; Appropriation



Authorizes department of transportation to issue revenue bonds for capital improvement projects for harbor improvements.




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