SB1361

SECTION 1. In order for the harbors division of the department of transportation to meet the economic needs of this State, suitable harbor facilities must be provided to assure the efficient and timely delivery of goods imported into the State by shipping. Hawaii's aging commercial harbor system has not kept pace with our growing economy, and it is now critical to upgrade existing port facilities and develop harbor improvements in an expedited manner. Under its statutory mandate, the harbors division is focused on essential daily management and operations of the commercial harbor system rather than development of new expansion opportunities. In order to achieve the development of critically needed harbor infrastructure improvements in an expedited manner, the harbors division desires to partner with Aloha Tower Development Corporation, an entity with a development oriented mission, statutory powers,and expertise in the development of state-owned properties, to prioritize development of harbor infrastructure in order to curtail statewide economic hardships that will occur if the harbors reach maximum cargo handling capacity by the year 2011 as currently projected.

The harbors division is additionally stymied by the lack of funding necessary to develop costly wharfs and cargo handling terminals and the ability to consider development oriented financing options such as public or private partnerships under its traditional structure, but Aloha Tower Development Corporation is empowered to do such things. A partnership with the Aloha Tower Development Corporation, which has jurisdiction over a portion of Honolulu Harbor, can also assist the harbors division by providing financial support from its limited commercial development along the downtown urban waterfront. Revenues generated from commercial development are proposed to be directed towards the funding of commercial harbor system infrastructure improvements.

SECTION 2. Chapter 206J, Hawaii Revised Statutes is amended by adding a new section to be appropriately designated and to read as follows:

"§206J- Projects with state agencies. (a) Consistent with its general powers under this chapter, the development corporation may undertake projects for commercial harbors, as that term is defined in section 266-1, under the control or jurisdiction of the department of transportation. Notwithstanding any provision in section 206J-17 to the contrary, payments to the development corporation for its administrative and operational expenses shall be made by the department of transportation and deposited into the Aloha Tower fund, in a sub-account designated for the particular development project.

(b) Authorization for funding and participation of the development corporation in projects under this section, and additional position authorizations within the development corporation therefor, shall be subject to legislative approval on a project by project basis. Such approval shall include the addition of a new part to this chapter for each project undertaken under this section, bearing the title of the development project and setting forth the terms, conditions, and any other limitations on the participation of the development corporation that the legislature may enact.

(c) If the legislature approves a commercial harbors project to be developed by the development corporation, all appropriations therefor shall be received and administered through the department of transportation. The department of transportation shall retain fiscal management and oversight of all project cost expenditures, budget, and contract approvals.

(d) Subject to existing contractual and statutory commitments to the department of transportation for any losses in revenue under this chapter, the development corporation may apply any revenues derived from commercial development projects in the Aloha Tower project area to defray the cost of harbor infrastructure improvements incurred within the State."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:

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BY REQUEST

THE SENATE	S.B. NO.	1361
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII