HOUSE OF REPRESENTATIVES

H.B. NO.

2756

TWENTY-EIGHTH LEGISLATURE, 2016

H.D. 1

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 there is a compelling interest in protecting consumers from the effects of the high prices of travel and transporting goods between the islands.  The legislature further finds that to promote commerce, the State must create a multimodal transportation network to encourage competition and lower the cost of conducting business in the State.

     The legislature finds that Hawaii's air transportation planning, management, and development functions are currently spread out among a number of agencies, including the department of transportation's airports division, 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.

     Recent problems experienced by the medevac night services on the neighbor islands could grow and lead to the loss of air travel options on Molokai and Lanai if the current multijurisdictional system is allowed to persist.

     The economic well-being of the State depends in part on the efficient use of all of its air transportation resources, which will enhance and complement efforts to improve Hawaii's economy.  The legislature believes that coordinated planning and development of small 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 small-scale 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.

     The legislature believes that it is time to reexamine placing small airports under a single jurisdiction, rather than retaining its placement in the department of transportation under the current system.  This will help to preserve small airports and will provide a vital transportation network among all islands.

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

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

     (2)  Improved administrative efficiency.  Consolidating small airport functions into 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; and

     (3)  Increased economic opportunities for the State relating to custom tours, increased tourism, and niche transportation options.  A port authority will enable the State to develop improved infrastructure and issue bonds to assist transportation industries that form a logical nexus to air transportation sectors.

     The legislature finds that the rational allocation and administration of scarce and increasingly valuable airport resources through the establishment of a port authority is vital for the well-being of the people and the economy of the State.  A port authority will create new access to cargo options, lower the cost of travel, increase medical flight services, provide increased flexibility for civil defense, and expand tourism options.

     It is the intent of the legislature that the employees of the department of transportation charged with the responsibilities of managing small airports be eventually transferred to the Hawaii port authority without loss of seniority or benefits and that future employees of the port authority be state employees.

     Accordingly, the purpose of this Act is to establish the Hawaii port authority, an independent public entity to set statewide policy on all matters relating to small airports and to provide for the orderly transfer of the functions of the department of transportation with regard to small airports to the Hawaii port authority.

     SECTION 2.  The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

HAWAII PORT AUTHORITY

     §   -1  Definitions.  As used in this chapter:

     "Administrator" means the administrator of the port authority.

     "Port authority" means the Hawaii port authority.

     "Small airport" means any of the following airports or portions of the following airports:

     (1)  The general aviation commuter portion of the:

         (A)  Hilo international airport;

         (B)  Honolulu international airport;

         (C)  Kahului airport;

         (D)  Kona international airport at Keahole; and

         (E)  Lihue airport;

     (2)  Dillingham airfield;

     (3)  Hana airport;

     (4)  Kalaeloa airport;

     (5)  Kalaupapa airport;

     (6)  Kapalua airport;

     (7)  Lanai airport;

     (8)  Molokai airport;

     (9)  Port Allen airport;

    (10)  Upolu airport; and

    (11)  Waimea-Kohala airport,

and any area of land or water in those portions of the airports or airports that is used, or intended for use, for the landing and departure 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.

     §   -2  Hawaii port authority; established.  (a)  There is established within the department of budget and finance for administrative purposes the Hawaii port authority to serve as an independent public entity to establish statewide policy on all matters relating to small airports in Hawaii.

     (b)  The port authority, shall be a body corporate and a special political subdivision of the State.

     §   -3  Hawaii port authority; members.  (a)  The port authority shall consist of four voting members as follows:

     (1)  The administrator, who shall be an ex-officio voting member of the port authority; and

     (2)  Three members who shall represent a background in light aircraft or small airports; provided that one of these members shall be a resident of a county with a population of less than five hundred thousand residents.

     (b)  The members of the port authority shall be appointed by the governor pursuant to section 26-34, except as specifically provided this section.  The president of the senate and the speaker of the house of representatives shall jointly submit the names of six persons with a background in light aircraft or small airports; provided that three persons shall be selected by the president of the senate and three persons shall be selected by the speaker of the house of representatives.  Initial appointments shall be for staggered terms, as determined by the governor.  Appointment of the members of the port authority by the governor shall be exempt from the advise and consent authority of the senate.

     (c)  Except as provided in this chapter, no member of the port authority appointed under this section shall be an officer or employee of the State or any of the counties.

     §   -4  Administrator of the Hawaii port authority.  (a)  The port authority shall be headed by a single executive to be known as the administrator of the port authority.

     (b)  The administrator:

     (1)  Shall report directly to the governor;

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

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

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

     (7)  May appoint, with the majority consent of the members voting thereon, a deputy administrator for each county 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. 

     (c)  The port authority shall adopt 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. 

     §   -5  Staff.  (a)  Each division head shall exercise the authority and discharge the duties delegated to that division head by the port authority and the administrator.  Each division head shall report to, and be under the supervision of, the administrator.

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

     (c)  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.

     §   -6  Hawaii port authority; powers and duties.  (a)  Except as otherwise provided in this chapter, the port authority:

     (1)  Shall exercise power and control over small airports and related facilities and buildings 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:

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

         (B)  Cooperate with and assist the federal government, including the Federal Aviation Administration, 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;

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

     (4)  May sue and be sued;

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

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

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

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

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

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

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

    (12)  Shall develop, construct, reconstruct, rehabilitate, improve, alter, or repair, or provide for the development, construction, reconstruction, rehabilitation, improvement, alteration, or repair of, any small airport 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 small airport or any project, improvement, or facility related thereto;

    (13)  Shall arrange or initiate appropriate action for the planning, replanning, opening, grading, relocating, or closing of streets, roads, roadways, alleys, easements, 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 small airport, or any project, improvement, or facility related thereto;

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

    (15)  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 chapter, and engage the services of consultants on a contractual basis for rendering professional and technical assistance and advice;

    (16)  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;

    (17)  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;

    (18)  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;

    (19)  Shall impose, prescribe, and collect rates, rentals, fees, or charges for the lease, use, and services of its small airport 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;

    (20)  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;

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

    (22)  Shall plan, construct, operate, and maintain all small airports in the State, including the acquisition and use of lands necessary to stockpile dredged spoils without the approval of county agencies, notwithstanding any other law to the contrary;

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

    (24)  May invest and secure its moneys in accordance with chapters 36 and 38;

    (25)  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;

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

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

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

    (29)  Explore niche ideas for the expansion or improvement of transportation in Hawaii, including the use of seaplanes;

    (30)  May do any and all things necessary to carry out its purposes and exercise the powers given to it in this chapter; and

    (31)  Adopt rules pursuant to chapter 91.

     (b)  No county shall adopt any ordinance or rule that interferes with or obstructs the operations of the port authority.

     §   -7  Hawaii port authority; powers and duties.  No later than twenty days prior to the convening of each regular session, the port authority shall submit to the legislature an annual report of its activities and finances."

     SECTION 3.  Jurisdiction over aeronautics and small airports, including related small airport functions under the department of transportation's airports division, shall be transferred to the port authority on July 1, 2017.

     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 transfer the authority and corresponding employees to the port authority under this Act.

     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 2016-2017 for implementation of the Hawaii port authority.

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

     SECTION 6.  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 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 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 9.  This Act shall take effect on July 1, 2116; provided that section 2 shall take effect on July 1, 2017, and section 5 shall take effect on July 1, 2116.



 

Report Title:

Port Authority; Establishment; Appropriation

 

Description:

Establishes the Hawaii Port Authority.  Empowers the Authority to administer a statewide system of small airports.  Appropriates funds. (HB2756 HD1)

 

 

 

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