Authorizes the University of Hawaii to establish a public-private partnership with private developers to develop a West Oahu campus in Kapolei in exchange for development rights in non-campus, University-owned land. Authorizes issuing general obligation bonds for infrastructure related to the development.

A BILL FOR AN ACT

SECTION 1. The legislature finds that it is in the public interest to allow the University of Hawaii to enter into a public-private partnership with one or more private developers to plan, design, and construct the University of Hawaii West Oahu campus in Kapolei in exchange for development rights for non-campus, University-owned land.

The legislature further finds that the University of Hawaii is committed to the continuing development of the region through innovative educational offerings and public service activities at its West Oahu campus. Its mission statement emphasizes its commitment to quality teaching and fostering lifelong learning for recent high school graduates and non-traditional students alike. The West Oahu campus is located in the area where the greatest residential and population growth is planned on Oahu. Its long-range development plan ensures that the growing population of the West Oahu region and the neighbor islands will continue to have access to a comprehensive range of baccalaureate degree opportunities without having to relocate or commute undue distances.

The University of Hawaii board of regents has selected five hundred acres in Kapolei on which to develop a permanent West Oahu campus. The campus' long-range development plan designates specific uses for the five hundred acres, including campus buildings, land for campus expansion, parks, and open space, and land for income generating uses.

The University intends to enter into a real estate development agreement to collectively provide comprehensive services, including design, construction, and financing, for the development of the West Oahu campus. It is the further intent of the University to grant development teams the right to construct, market, offer, and sell up to three hundred twenty acres of the non-campus, University-owned lands, under specified conditions, with the expectation that the proceeds of those transactions will fund the development of the campus.

The purpose of this Act is to authorize the University of Hawaii to enter into a public-private partnership with one or more private developers to develop a permanent West Oahu campus, and to authorize the issuance of general obligation bonds for infrastructure associated with the development of that campus.

SECTION 2. The University of Hawaii board of regents may enter into a public-private agreement with one or more private contractors to design, develop, finance, and construct the University of Hawaii West Oahu campus. The board of regents may grant development teams the right to construct, market, offer and sell non-campus, university-owned lands under specified conditions, with the agreement that the proceeds of those transactions will fund the development of the West Oahu campus.

SECTION 3. The director of finance is authorized to issue general obligation bonds in the sum of $30,000,000, or so much thereof as may be necessary, and the same sum, or so much thereof as may be necessary, is appropriated for fiscal year 2005-2006 for the purpose of the infrastructure associated with the development of the University of Hawaii West Oahu campus.

SECTION 4. The appropriation made for the capital improvement project 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, 2008, shall lapse as of that date.

SECTION 5. The sums appropriated shall be expended by the University of Hawaii for the purposes of this Act according to section 304-1.5, Hawaii Revised Statutes.

SECTION 6. Section 304-4, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The board of regents shall have management and control of the general affairs, and exclusive jurisdiction over the internal organization and management, of the university. It may appoint a treasurer and such other officers as it deems necessary. It may authorize any officer, elected or appointed by it, to approve and sign on its behalf any voucher or other document which the board may approve and sign. It may contract with private sector companies to develop university campuses. It may delegate to the president or the president's designee the authority to render the final decision in contested case proceedings subject to chapter 91, as it deems appropriate. It may purchase or otherwise acquire lands, buildings, appliances, and other property for the purposes of the university and expend such sums of money as may be from time to time placed at the disposal of the university from whatever source. All lands, buildings, appliances, and other property so purchased or acquired shall be and remain the property of the university to be used in perpetuity for the benefit of the university. The board of regents, in accordance with law, shall manage the inventory, equipment, surplus property, and expenditures of the university and, subject to chapter 91, may adopt rules, further controlling and regulating the same."

SECTION 7. New statutory material is underscored.

SECTION 8. This Act shall take effect on July 1, 2005.