HB2153 HD1.DOC

SECTION 1. The legislature finds that motor vehicle transportation has been and continues to be both a critical necessity for, and the bane of, Hawaii's drivers. It has been contended that the operation of toll roads has contributed to controlling the amount of motor vehicle traffic, thus reducing traffic congestion in various venues worldwide. It has also been contended that toll roads offer a dedicated source of revenue for the maintenance of heavily used highways and roads, thus freeing up public revenues for other uses. Other jurisdictions, both domestic and foreign, have implemented toll roads with success.

The legislature further finds that, under section 46‑1.5(19)(D), Hawaii Revised Statutes, the counties are authorized and have the power to open, close, construct, or maintain county highways or charge toll on county highways; provided that all revenues received from a toll charge are used for the construction or maintenance of county highways. The purpose of this Act is to statutorily confer similar authorization to the department of transportation.

SECTION 2. Chapter 264, Hawaii Revised Statutes, is amended by adding two new sections to part III to be appropriately designated and to read as follows:

"§264‑A Toll roads; agreement with private entities. (a) The department of transportation may request competing proposals from private entities by advertising and may enter into written agreements with private entities relating to both of the following:

(1) The construction of toll roads by private entities; and

(2) The lease of toll roads constructed pursuant to this section by the department to private entities.

(b) A private entity that submits a proposal pursuant to subsection (a) shall include in the private entity's proposal a description of any pending, threatened, or current lawsuit, action, investigation, or administrative or other proceeding involving the private entity or any firm, entity, or individual of the private entity.

(c) To facilitate the development of toll roads, the agreements with private entities prescribed in subsection (a) may provide for any of the following:

(1) The lease of state highway rights-of-way;

(2) The lease of airspace over and under state highways;

(3) The granting of easements of necessity; and

(4) The issuance of permits or other authorization for the private entities to construct toll roads supplemental to existing state toll roads.

(d) An agreement with a private entity entered into pursuant to this section shall provide for all of the following:

(1) State ownership of the toll road constructed by a private entity;

(2) Lease of the toll road to the private entity for a period mutually agreeable to the department of transportation and the private entity;

(3) Reversion to the State of the toll road constructed by the private entity, after the expiration of the lease, at no expense to the State, as consideration for the lease granted by the State;

(4) Reimbursement by the private entity to the department of transportation or any other state agency for costs incurred after the written agreement is finalized, including the costs of planning, environmental impact assessment, design, maintenance, law enforcement services, and any other services rendered;

(5) Authorization for the private entity to impose and collect tolls for the use of a toll road constructed by the private entity;

(6) During the term of the lease, the private entity shall apply toll revenues to:

(A) Capital outlay costs for the toll road plus interest and principal repayment for any debt incurred;

(B) Costs associated with operations, toll collection, and administration of the toll road;

(C) Payment to the State for reimbursement of the costs of maintenance, law enforcement, and other services if these services are performed by the State pursuant to the written agreement with the private entity; and

(D) A reasonable return on investment to the private entity; and

(7) No construction of a toll road where there is no alternative toll-free route available for public use.

(e) The director of transportation shall not approve more than two proposals under this section.

(f) On negotiation of an agreement pursuant to this section, the department of transportation shall make a copy of the agreement available at a public hearing at a location convenient to the private entity's project and for at least fifteen days before the public hearing. The notice of the public hearing shall be published in any newspaper with a general circulation of at least sixty thousand published in the State. The notice of the public hearing shall announce the availability of the agreement and where a copy of the agreement may be obtained or reviewed and shall state that comments may be submitted in writing to the department of transportation within thirty days of the availability of the agreement. The department of transportation may revise or renegotiate the agreement based on the public comments it receives.

(g) After compliance with subsection (f), the director of transportation may give final approval to the project, project design, connections of the roadway, and the agreement prescribed in this section and execute the agreement.

(h) Nothing in this section shall prohibit the director of transportation from designating any existing public highway owned by the State as a toll road or from imposing toll charges on those highways; provided that a toll-free alternative route is available for public use.

§264‑B Prior determination of feasibility. Prior to entering into any agreement or designating an existing public highway owned by the State under section 264‑A, the director of transportation shall determine the feasibility of imposing toll charges on the use of any existing public highway or road owned by the State or constructing any new highway or road in the State for which use toll charges are to be imposed. The director of transportation shall include the following in the feasibility study:

(1) Data and experiences of other jurisdictions that have converted or constructed similar toll roads that may be applicable to Hawaii;

(2) The most appropriate areas for the placement of a toll road in each county;

(3) Whether the placement of particular toll roads will require the exercise of the power of eminent domain by either the State or a county;

(4) Whether the toll roads should be funded, acquired, owned, designed, constructed, maintained, and controlled, either in whole or in part, by the State, the counties, or private entities;

(5) The approximate costs for each suggested toll road, including costs for:

(A) The acquisition of any land necessary for the construction of the toll road and any necessary maintenance facilities;

(B) The construction of the toll road; and

(6) A review of all applicable federal, state, and county laws that must be complied with relating to the construction, operation, and maintenance of toll roads, whether those roads are controlled by the State, the counties, or private entities."

SECTION 3. New statutory material is underscored.

SECTION 4. In codifying the new sections added by section 2 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 5. This Act shall take effect upon its approval.

HOUSE OF REPRESENTATIVES	H.B. NO.	2153
TWENTY-SIXTH LEGISLATURE, 2012		H.D. 1
STATE OF HAWAII