HB2337.DOC

SECTION 1. The purpose of this Act is to repeal part II, chapter 206E, Hawaii Revised Statutes, which establishes the Kakaako community development district under the Hawaii community development authority, and to provide for the transition of functions from the Hawaii community development authority to the applicable state and county agencies.

Since the adoption of the district in 1976, the authority has made tremendous progress in stimulating economic revitalization, re-introducing market and affordable housing to the area, and upgrading infrastructure.

At the same time, the legis1ature finds the City and County of Honolulu has made significant strides in adopting long-range plans for the greater region. This increasingly makes it difficult to realize consistent growth management policies for the region with separate entities governing it.

Moreover, with rail transit underway and evidence that the City and County of Honolulu has demonstrated a deep commitment to this major public utility, and to planning and zoning for development around the stations, which would benefit from a regional perspective, it is time to transfer planning and zoning oversight of the Kakaako community development district to the City and County of Honolulu. Therefore, this Act transfers jurisdiction of the Hawaii community development authority to other agencies as follows:

(1) Long-range planning and zoning to the City and County of Honolulu, except as noted below;

(2) Capital improvement projects related to county roadways, sewer and water delivery systems, parks and open space, and other infrastructure systems to the City and County of Honolulu;

(3) Submerged lands and contiguous fast lands necessary for the management, maintenance, and operation of the small boat facilities at Kewalo basin, Oahu, to the department of land and natural resources, and the department of transportation.

SECTION 2. Chapter 206E, Part II, Hawaii Revised Statutes, is repealed.

SECTION 3. Section 5l4A-14.5, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) This section shall not apply:

(1) To apartments developed under chapter 20lH or 356D;

(2) To apartments in a mixed-use project that was developed [~~under chapter 206E that~~] by the Hawaii community development authority prior to the enactment of Act , , Session Laws of Hawaii 2010 and that has a shared parking program approved by the Hawaii community development authority prior to the enactment of Act , , Session Laws of Hawaii 2010; provided that [~~such a~~] the program shall require the availability of the use of not less than one parking space per apartment; and

(3) To apartments designated in the declaration of condominium property regime for hotel, time share, transient vacation rental, or commercial use."

SECTION 4. Upon the effective date of this Act, title to all lands under the control of the Hawaii community development authority within the Kakaako community development district that was established by section 206E-32, Hawaii Revised Statutes, prior to the enactment of this Act, shall be transferred to the department of land and natural resources.

SECTION 5. Upon the effective date of this Act, planning and zoning authority shall be transferred from the Hawaii community development authority to the City and County of Honolulu for real property under the control of the Hawaii community development authority that is within the Kakaako community development district that was established by section 206E—32, Hawaii Revised Statutes, prior to the enactment of this Act.

SECTION 6. All rights, powers, functions, and duties of the Hawaii community development authority are transferred to the department of land and natural resources or the City and County of Honolulu, as appropriate.

SECTION 7. All appropriations, records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property made, used, acquired, or held by:

(1) The Hawaii community development authority relating to the functions transferred to the department of land and natural resources or the City and County of Honolulu; and

(2) The department of transportation with respect to submerged lands and contiguous fast lands necessary for the management, maintenance, and operation of the small boat facilities at Kewalo basin,

shall be transferred with the functions to which they relate.

SECTION 8. All unencumbered moneys deposited in any revolving or special fund controlled by the Hawaii community development authority, shall be transferred to the county and used exclusively for the benefit of Kakaako lands.

SECTION 9. All officers and employees whose functions are transferred by this Act shall be transferred with their functions and shall continue to perform their regular duties upon their transfer, subject to the state personnel laws and this Act.

An officer or employee of the State having tenure shall not suffer any loss of salary, seniority, prior service credit, vacation, sick leave, or other employee benefit or privilege as a consequence of this Act. A state officer or employee having tenure may be transferred or appointed to a civil service position as a consequence of this Act without the necessity of examination; provided that the officer or employee possesses the minimum qualifications for the position to which transferred or appointed; and provided that subsequent changes in status may be made pursuant to applicable civil service and compensation laws.

An officer or employee of the State who does not have tenure and who may be transferred or appointed to a civil service position as a consequence of this Act shall become a civil service employee without the loss of salary, seniority, prior service credit, vacation, sick leave, or other employee benefits or privileges and without the necessity of examination; provided that the officer or employee possesses the minimum qualifications for the position to which transferred or appointed.

If an office or position held by an officer or employee having tenure is abolished as a consequence of this Act, the officer or employee shall not consequently be separated from public employment, but shall remain in the employment of the State or City and County of Honolulu with the same pay and classification and shall be transferred to some other office or position for which the officer or employee is eligible under the personnel laws as determined by the governor or the mayor of the City and County of Honolulu.

SECTION 10. All rules, policies, procedures, guidelines, and other material adopted or developed by:

(1) The Hawaii community development authority to implement provisions of the Hawaii Revised Statutes and that are reenacted or made applicable to the department of land and natural resources or the City and County of Honolulu by this Act; and

(2) The department of transportation with respect to submerged lands and contiguous fast lands necessary for the management, maintenance, and operation of the small boat facilities at Kewalo basin,

shall remain in full force and effect until amended or repealed by the board of land and natural resources or the City and County of Honolulu pursuant to chapter 91, Hawaii Revised Statutes. In the interim, every reference to the Hawaii community development authority, the department of transportation, or the director of transportation in those rules, policies, procedures, guidelines, and other material is amended to refer to the department of land and natural resources, the chairperson of the board of land and natural resources, or the City and County of Honolulu, as appropriate.

SECTION 11. All deeds, leases, contracts, loans, agreements, permits, or other documents executed or entered into by or on behalf of the Hawaii community development authority or the department of transportation pursuant to the provisions of the Hawaii Revised Statutes that are reenacted or made applicable to the department of land and natural resources or the City and County of Honolulu by this Act, shall remain in full force and effect, unless affirmatively amended by the appropriate agency, under due process. Upon the effective date of this Act, every reference to the Hawaii community development authority or the executive director of the Hawaii community development authority, or the department of transportation or the director of transportation therein shall be construed as a reference to the department of land and natural resources, the chairperson of the board of land and natural resources, or the City and County of Honolulu, as appropriate.

SECTION 12. During the time between the enactment of this Act and its effective date the Hawaii community development authority shall make no decisions on deeds, leases, contracts, loans, agreements, permits or other documents unless the appropriate state agency or City and County of Honolulu concurs.

SECTION 13. If any part of this Act is found to be in conflict with federal requirements that are a prescribed condition for the allocation of federal funds to the State, the conflicting part of this Act is inoperative solely to the extent of the conflict and with respect to the agencies directly affected, and this finding does not affect the operation of the remainder of this Act in its application to the agencies concerned. The rules in effect as a result of this Act shall meet federal requirements that are a necessary condition to the receipt of federal funds by the State or the City and County of Honolulu.

SECTION 14. In printing this Act, the revisor of statutes shall substitute in section 5l4A—14.5, Hawaii Revised Statutes, of section 3, the corresponding act number of this Act.

SECTION 15. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 16. This Act shall take effect on July 1, 2012 to allow for budgetary adjustments, rule changes, and other transition actions.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	2337
TWENTY-FIFTH LEGISLATURE, 2010
STATE OF HAWAII