SB1247 SD2.DOC

PART I

SECTION 1. Chapter 206E, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part . Aloha Tower COMMUNITY Development district

§206E-A Established; boundaries. The Aloha Tower community development district is established. The district shall be located entirely within the Kakaako community development district and shall have the boundaries established pursuant to section 206E-32.

§206E-B Community development rules; powers and duties limited. Notwithstanding any provision to the contrary, the authority shall establish community development rules under chapter 91 on health, safety, building, planning, zoning, and land use which, upon final adoption of a community development plan, shall supersede all other inconsistent ordinances and rules relating to the use, zoning, planning, and development of land and construction thereon, in accordance with section 206E‑7; provided that any rights, powers, functions, and duties related to the administration of the district that are not specifically enumerated in this section are transferred to the department of transportation, in accordance with chapter 266."

SECTION 2. Chapter 266, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:

"§266‑ Harbors modernization group; commercial harbors modernization plan. (a) No later than July 1, 2011, the harbors modernization group shall be administratively placed under the department of transportation. The harbors modernization group shall have jurisdiction over harbors projects for the commercial harbors modernization plan described in subsection (b). All projects, prior to implementation, shall be approved by the governor. If the governor approves a project, the harbors modernization group shall have expending authority over the approved project, notwithstanding any law to the contrary.

For purposes of this subsection, the department of transportation shall seek the input and guidance of the United States Department of Transportation Maritime Administration in the management of the harbors modernization project; provided that the department of transportation may enter into an agreement with the United States Department of Transportation Maritime Administration for the purpose of infrastructure improvements of harbors statewide.

(b) The harbors modernization group shall have jurisdiction over harbors projects, to be known collectively as the commercial harbors modernization plan, which shall be completed no later than June 30, 2017. These harbors projects shall be as follows:

(1) Honolulu harbor. Development of infrastructure, expansion of facilities, and tenant relocations, including the development of the new Kapalama container terminal;

(2) Kahului harbor. Development of infrastructure, expansion of facilities, tenant relocations, and acquisition of lands, including the West harbor barge or ferry slip or both, West harbor dredging and breakwater, West harbor cruise terminal, Pier 1 fuel line replacement and upgrade, East harbor breakwater, and Pier 2B strengthening;

(3) Hana harbor. Development of infrastructure, demolition, as necessary, expansion of facilities, and acquisition of lands;

(4) Hilo harbor. Development of infrastructure, expansion of facilities, tenant relocations, and acquisition of lands, including the Pier 4 interisland cargo terminal;

(5) Kawaihae harbor. Development of infrastructure, expansion of facilities, tenant relocations, acquisition of lands, including the Pier 2 terminal and barge improvements, Pier 2 extension and terminal, and Pier 4 and liquid bulk terminals;

(6) Kalaeloa harbor. Development of infrastructure, expansion of facilities, tenant relocations, and acquisition of lands, including the West harbor infrastructure, Pier 4 dedicated fuel pier, and extension of the fuel line; and

(7) Nawiliwili harbor. Development of infrastructure, expansion of facilities, tenant relocations, and acquisition of lands, including the new multi-use pier.

(c) Land disposition matters in projects identified in the commercial harbors modernization plan, including land acquisition, leasing, and conveyance, and acquisitions of easements or rights-of-way, shall be under the jurisdiction of the board of land and natural resources pursuant to chapter 171.

(d) The harbors modernization group shall be comprised of four voting members, as follows:

(1) The director of transportation, or the director's designee, who shall serve as chairperson;

(2) The director of finance, or the director's designee; and

(3) Two public members, not including any officer or employee of the State, one to be appointed by the governor from a list of three nominees submitted to the governor by the president of the senate, and one to be approved by the governor from a list of three nominees submitted to the governor by the speaker of the house of representatives; provided that the two public members shall each be directly involved with:

(A) Any harbor or offshore mooring facility in the State that is primarily involved with the movement of commercial cargo and passenger vessels entering, departing, or traveling within the state harbor system;

(B) An activity that requires or is otherwise directly related to the loading, offloading, storage, or distribution of goods and services by means of seaborne transportation; or

(i) Promote the welfare, growth, and economic interests of Hawaii's commercial harbors and harbor facilities;

(ii) Assist and inform harbor users of, and assist harbor users in, the interpretation of laws, rules, regulations, and proposed and pending legislation applicable to Hawaii harbors and harbor facilities for compliance purposes; and

(iii) Foster and encourage the development and improvement of Hawaii harbors and harbor facilities.

The members of the harbors modernization group shall serve for four year terms and shall continue in office until their respective successors have been appointed.

The members of the harbors modernization group shall serve without compensation, but each member shall be reimbursed for expenses, including travel expenses, incurred in the performance of their duties.

For purposes of conducting business, a majority of the members of the harbors modernization group shall constitute a quorum. For purposes of voting, a majority of the quorum shall be required for decision making.

(e) The department of transportation may apply any revenues derived from commercial development projects in the state harbors to defray the cost of harbor infrastructure improvements.

(f) The harbors modernization group shall cease to exist when the harbors modernization plan is completed.

§266‑ Aloha Tower fund. There is created the Aloha Tower fund, to be placed for administrative purposes under the department of transportation. All moneys, rental fees, charges, and other revenues of the department derived from the Aloha Tower Marketplace Project shall be deposited into the fund."

SECTION 3. Section 26-18, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The following are placed in the department of business, economic development, and tourism for administrative purposes as defined by section 26-35: [~~Aloha Tower development corporation,~~] Hawaii community development authority, Hawaii housing finance and development corporation, high technology development corporation, land use commission, natural energy laboratory of Hawaii authority, and any other boards and commissions as shall be provided by law.

The department of business, economic development, and tourism shall be empowered to establish, modify, or abolish statistical boundaries for cities, towns, or villages in the State and shall publish, as expeditiously as possible, an up-to-date list of cities, towns, and villages after changes to statistical boundaries have been made."

SECTION 4. Section 36-27, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Except as provided in this section, and notwithstanding any other law to the contrary, from time to time, the director of finance, for the purpose of defraying the prorated estimate of central service expenses of government in relation to all special funds, except the:

(1) Special out-of-school time instructional program fund under section 302A-1310;

(2) School cafeteria special funds of the department of education;

(3) Special funds of the University of Hawaii;

(4) State educational facilities improvement special fund;

(5) Convention center enterprise special fund under section 201B-8;

(6) Special funds established by section 206E-6;

(7) Housing loan program revenue bond special fund;

(8) Housing project bond special fund;

(9) Aloha Tower fund created by section [~~206J-17;~~] 266- ;

(10) Funds of the employees' retirement system created by section 88-109;

(11) Unemployment compensation fund established under section 383-121;

(12) Hawaii hurricane relief fund established under chapter 431P;

(13) Hawaii health systems corporation special funds and the subaccounts of its regional system boards;

(14) Tourism special fund established under section 201B-11;

(15) Universal service fund established under section 269-42;

(16) Emergency and budget reserve fund under section 328L-3;

(17) Public schools special fees and charges fund under section 302A-1130;

(18) Sport fish special fund under section 187A-9.5;

(19) Glass advance disposal fee established by section 342G-82;

(20) Center for nursing special fund under section 304A-2163;

(21) Passenger facility charge special fund established by section 261-5.5;

(22) Court interpreting services revolving fund under section 607-1.5;

(23) Hawaii cancer research special fund;

(24) Community health centers special fund;

(25) Emergency medical services special fund;

(26) Rental motor vehicle customer facility charge special fund established under section 261-5.6; and

(27) Shared services technology special fund under section 27-43,

shall deduct five per cent of all receipts of all special funds, which deduction shall be transferred to the general fund of the State and become general realizations of the State. All officers of the State and other persons having power to allocate or disburse any special funds shall cooperate with the director in effecting these transfers. To determine the proper revenue base upon which the central service assessment is to be calculated, the director shall adopt rules pursuant to chapter 91 for the purpose of suspending or limiting the application of the central service assessment of any fund. No later than twenty days prior to the convening of each regular session of the legislature, the director shall report all central service assessments made during the preceding fiscal year."

SECTION 5. Section 36-30, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Each special fund, except the:

(1) Transportation use special fund established by section 261D-1;

(2) Special out-of-school time instructional program fund under section 302A-1310;

(3) School cafeteria special funds of the department of education;

(4) Special funds of the University of Hawaii;

(5) State educational facilities improvement special fund;

(6) Special funds established by section 206E-6;

(7) Aloha Tower fund created by section [~~206J-17;~~] 266- ;

(8) Funds of the employees' retirement system created by section 88-109;

(9) Unemployment compensation fund established under section 383-121;

(10) Hawaii hurricane relief fund established under section 431P-2;

(11) Convention center enterprise special fund established under section 201B-8;

(12) Hawaii health systems corporation special funds and the subaccounts of its regional system boards;

(13) Tourism special fund established under section 201B-11;

(14) Universal service fund established under section 269-42;

(15) Emergency and budget reserve fund under section 328L-3;

(16) Public schools special fees and charges fund under section 302A-1130;

(17) Sport fish special fund under section 187A-9.5;

(18) Center for nursing special fund under section 304A-2163;

(19) Passenger facility charge special fund established by section 261-5.5;

(20) Court interpreting services revolving fund under section 607-1.5;

(21) Hawaii cancer research special fund;

(22) Community health centers special fund;

(23) Emergency medical services special fund;

(24) Rental motor vehicle customer facility charge special fund established under section 261-5.6; and

(25) Shared services technology special fund under section 27-43,

shall be responsible for its pro rata share of the administrative expenses incurred by the department responsible for the operations supported by the special fund concerned."

SECTION 6. Section 171-2, Hawaii Revised Statutes, is amended to read as follows:

"§171-2 Definition of public lands. "Public lands" means all lands or interest therein in the State classed as government or crown lands previous to August 15, 1895, or acquired or reserved by the government upon or subsequent to that date by purchase, exchange, escheat, or the exercise of the right of eminent domain, or in any other manner; including accreted lands not otherwise awarded, submerged lands, and lands beneath tidal waters which are suitable for reclamation, together with reclaimed lands which have been given the status of public lands under this chapter, except:

(1) Lands designated in section 203 of the Hawaiian Homes Commission Act, 1920, as amended;

(2) Lands set aside pursuant to law for the use of the United States;

(3) Lands being used for roads and streets;

(4) Lands to which the United States relinquished the absolute fee and ownership under section 91 of the Hawaiian Organic Act prior to the admission of Hawaii as a state of the United States unless subsequently placed under the control of the board of land and natural resources and given the status of public lands in accordance with the State Constitution, the Hawaiian Homes Commission Act, 1920, as amended, or other laws;

(5) Lands to which the University of Hawaii holds title;

(6) Lands to which the Hawaii housing finance and development corporation in its corporate capacity holds title;

(7) Lands to which the Hawaii community development authority in its corporate capacity holds title;

(8) Lands to which the department of agriculture holds title by way of foreclosure, voluntary surrender, or otherwise, to recover moneys loaned or to recover debts otherwise owed the department under chapter 167;

[~~(9)~~ Lands which are set aside by the governor to the Aloha Tower development corporation; lands leased to the Aloha Tower development corporation by any department or agency of the State; or lands to which the Aloha Tower development corporation holds title in its corporate capacity;]

[~~(10)~~] (9) Lands which are set aside by the governor to the agribusiness development corporation; lands leased to the agribusiness development corporation by any department or agency of the State; or lands to which the agribusiness development corporation in its corporate capacity holds title; and

[~~(11)~~] (10) Lands to which the high technology development corporation in its corporate capacity holds title."

SECTION 7. Section 171-64.7, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) This section applies to all lands or interest therein owned or under the control of state departments and agencies classed as government or crown lands previous to August 15, 1895, or acquired or reserved by the government upon or subsequent to that date by purchase, exchange, escheat, or the exercise of the right of eminent domain, or any other manner, including accreted lands not otherwise awarded, submerged lands, and lands beneath tidal waters which are suitable for reclamation, together with reclaimed lands which have been given the status of public lands under this chapter, including:

(1) Land set aside pursuant to law for the use of the United States;

(2) Land to which the United States relinquished the absolute fee and ownership under section 91 of the Organic Act prior to the admission of Hawaii as a state of the United States;

(3) Land to which the University of Hawaii holds title;

(4) Land to which the Hawaii housing finance and development corporation in its corporate capacity holds title;

(5) Land to which the department of agriculture holds title by way of foreclosure, voluntary surrender, or otherwise, to recover moneys loaned or to recover debts otherwise owed the department under chapter 167;

[~~(6)~~ ~~Land that is set aside by the governor to the Aloha Tower development corporation; or land to which the Aloha Tower development corporation holds title in its corporate capacity;~~

~~(7)~~] (6) Land that is set aside by the governor to the agribusiness development corporation; or land to which the agribusiness development corporation in its corporate capacity holds title; and

[~~(8)~~] (7) Land to which the high technology development corporation in its corporate capacity holds title."

SECTION 8. Section 206E-32, Hawaii Revised Statutes, is amended to read as follows:

"§206E-32 District[;] established[,]; Aloha Tower community development district; boundaries. (a) The Kakaako community development district [~~is established.~~] and the Aloha Tower community development district are established. The Aloha Tower community development district shall be included entirely within the Kakaako community development district and shall include the lands described in subsection (b) of this section. The Kakaako community development district shall include that area bounded by King Street; Piikoi Street from its intersection with King Street to Ala Moana Boulevard; Ala Moana Boulevard, inclusive, from Piikoi Street to its intersection with the Ewa boundary of Ala Moana Park also identified as the Ewa boundary of tax map key 2-3-37:01; the Ewa boundary of tax map key 2-3-37:01 from its intersection with Ala Moana Boulevard to the shoreline; the shoreline from its intersection with the property line representing the Ewa boundary of property identified by tax map key 2-3-37:01 to the property line between Pier 2 and Pier 4; the property line between Pier 2 and Pier 4 from its intersection with the shoreline to Ala Moana Boulevard; Ala Moana Boulevard from its intersection with the property line between lands identified by Pier 2 and Pier 4 to Punchbowl Street; and Punchbowl Street to its intersection with King Street; provided that the following parcels at Pier 1 and Pier 2 shall be deleted from the Kakaako community development district boundaries and conveyed to the department of land and natural resources to be set aside for the department of transportation and the foreign-trade zone division of the department of business, economic development, and tourism, to ensure continued maritime and foreign commerce use: all of lot 3 and parcels 2, 3-A, A, and B of the Forrest Avenue subdivision, as shown on the map filed with the bureau of conveyances of the State of Hawaii as file plan 2335; and lots A-1 and A-2, as shown on map 2, filed in the office of the assistant registrar of the land court of the State of Hawaii with land court application 1328; and provided further that all existing easements affecting and appurtenant to the parcels to be deleted from the Kakaako community development district boundaries shall not be affected by this change.

The district shall also include that parcel of land identified by tax map key 2-1-14:16, situated mauka of Pier 6 and Pier 7 and makai of Nimitz Highway, being the site for the existing Hawaiian Electric power plant and related facilities.

(b) The district shall also include the Aloha Tower community development district, established pursuant to section 206E-A, which shall include the area bounded by Nimitz Highway beginning at its intersection with the Diamond Head boundary of tax map key 2-1-13:7 north along Nimitz Highway to its intersection with the makai boundary of tax map key 1 7 1:6; northeast along River Street to its intersection with King Street; north along King Street to its intersection with Iwilei Road west along Iwilei Road to its intersection with Nimitz Highway at the Ewa makai corner of tax map key 1 5 08:1; south along Nimitz Highway to its intersection with the boundary between tax map key 1-5-8:1 and tax map key 1 5 8:9; west along a line to the Diamond Head mauka corner of tax map key 1-5-40:4; west along Nimitz Highway to its intersection with the Ewa boundary of tax map key 1-5-38:4; south along the Ewa boundaries of tax map key 1-5-38:4 and 1-5-38:5 to Honolulu Harbor; east along the waterfront boundary of tax map key 1-5-38:5 to Pier 23; south along Pier 23 to the southwest end of Pier 22; continuing along a line in the same direction to its intersection with the Honolulu Harbor Federal Project Line; northeast along the Honolulu Harbor Federal Project Line to a point in Honolulu Harbor 475 feet perpendicular to Pier 11; southwest along a line parallel to Piers 10 and 11 to its intersection with a line extending from the southwest end of Pier 22 to the point of intersection of the Honolulu Harbor Federal Project Line and a line extending along Pier 8 into Honolulu Harbor; southeast along a line to the point of intersection of the Honolulu Federal Project Line and a line extending along Pier 8 into Honolulu Harbor; southeast along the Honolulu Harbor Federal Project Line to its intersection with a line extending along Pier 4 into Honolulu Harbor; east along a line from that intersection and along Pier 4 to its intersection with Nimitz Highway; north along Nimitz Highway to its intersection with Richards Street; southwest along Richards Street to its intersection with Ala Moana Boulevard; northwest along Ala Moana Boulevard to its intersection with the Ewa boundary of tax map key 2-1-14:6; northeast along the Ewa boundary of tax map key 2-1-14:6 to its Ewa mauka corner; and northwest across Bishop Street to the point of beginning at the intersection of the Diamond Head boundary of tax map key 2-1-13:7 and Nimitz Highway. The complex shall also include the area bounded by Iwilei Road beginning with its intersection with Nimitz Highway; west along Iwilei Road to its intersection with Pacific Street; southeast along Pacific Street to its intersection with the Ewa mauka corner of tax map key 1-5-38:4; east along Nimitz Highway to its intersection with the Diamond Head mauka corner of tax map key 1-50-40:4; east along a line to the point of intersection at the boundary between tax map key 1-5-8:1 and tax map key 1-5-8:9; north along Nimitz Highway to the point of beginning at the intersection of Nimitz Highway and Iwilei Road; all fast and submerged lands contained within these areas shall also be included."

SECTION 9. Chapter 206J, Hawaii Revised Statutes, is repealed.

PART II

SECTION 10. Except as otherwise provided in this Act, all rights, powers, functions, and duties of the Aloha Tower development corporation are transferred to the department of transportation.

SECTION 11. All appropriations, records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by the Aloha Tower development corporation shall be transferred to department of transportation.

SECTION 12. Notwithstanding any law to the contrary:

(1) The two public members from the maritime industry who were serving on the harbors modernization group as of the day before the effective date of this Act shall continue to serve on the harbors modernization group in the capacity of public members from the maritime industry; and

(2) The service of all other members on the harbors modernization group who were serving prior to the effective date of this Act shall terminate on the day before the effective date of this Act.

SECTION 13. In codifying the new part added by section 1 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 14. There is appropriated out of the Aloha Tower fund the sum of $ or so much thereof as may be necessary for fiscal year 2011-2012 for consultant services to implement the commercial harbors modernization plan and the Aloha Tower Marketplace Project.

The sum appropriated shall be expended by the department of transportation for the purposes 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, 2050.

THE SENATE	S.B. NO.	1247
TWENTY-SIXTH LEGISLATURE, 2011		S.D. 2
STATE OF HAWAII