A BILL FOR AN ACT

SECTION 1. Section 261-7, Hawaii Revised Statutes, is amended to read as follows:

§261-7 Operation and use privileges. (a) In operating an airport or air navigation facility owned or controlled by the department of transportation or in which it has a right or interest, the department may enter into contracts, leases, licenses, and other arrangements with any person:

All the arrangements shall contain a clause that the land may be repossessed by the department when needed for aeronautics purposes upon giving the tenant temporarily occupying the same not less than thirty days' notice in writing of intention to repossess.

(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 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 charges shall be reasonable and uniform for the same class of privilege, service, or thing.

(c) The department [shall] may enter into [a contract with no more than one person ("contractor")] contracts for the sale and delivery of in-bond merchandise at [Honolulu International Airport] any state airport, in the manner provided by law. The [contract shall] contracts may confer the right to operate and maintain commercial facilities within [the airport] any state airport for the sale of in-bond merchandise [and] and/or the right to deliver to [the airport] any state airport in-bond merchandise for sale to departing foreign-bound passengers.

The department [shall] may grant the [contract] contracts with one or more persons ("contractors") pursuant to the laws of this State and may take into consideration:

The department shall actively supervise the operation of the [contractor] contractors to insure [its] their effectiveness. The department shall develop and implement such guidelines as it may find necessary and proper to actively supervise the operations of the [contractor] contractors, and shall include guidelines relating to the department's review of the reasonableness of [contractor's] the contractors' price schedules, quality of merchandise, merchandise assortment, operations, and service to customers.

[Apart from the contract described in this subsection, the department shall confer no right upon nor suffer nor allow any person to offer to sell, sell, or deliver in-bond merchandise at Honolulu International Airport; provided that this] This section shall not prohibit the delivery of in-bond merchandise as cargo to [the Honolulu International Airport.] any state airport.

(d) The department, by contract, lease, or other arrangement, upon a consideration fixed by it, may grant to any qualified person the privilege of operating, as agent of the State or otherwise, any airport owned or controlled by the department; provided that no such person shall be granted any authority to operate the airport other than as a public airport or to enter into any contracts, leases, or other arrangements in connection with the operation of the airport which the department might not have undertaken under subsection (a).

(e) The department may fix and regulate, from time to time, reasonable landing fees for aircraft 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 landing fee which may vary among different classes of users such as foreign carriers, domestic carriers, inter-island carriers, air taxi operators, and such other classes as may be determined by the director of transportation, 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.

(f) To enforce the payment of any charges for repairs or improvements to, or storage or care of any personal property made or furnished by the department or its agent in connection with the operation of any airport or air navigation facility owned or operated by the department, the department shall have liens on the property, which shall be enforceable by it as provided by sections 507-18 to 507-22.

(g) The department 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 2. Statutory material to be replaced is bracketed. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval.