HB1428.DOC

SECTION 1. Section 5-7.7, Hawaii Revised Statutes, is amended to read as follows:

"[[]§5-7.7[]] Aloha order of merit location. There shall be set aside within the [~~Honolulu International Airport~~] Daniel K. Inouye International Airport an area to exhibit commemorative displays honoring members of the order. The displays may include likenesses of members and descriptions of the meritorious achievements of each member."

SECTION 2. Section 102-11, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) All security provided under this section shall:

(1) Be conditioned on the full and faithful performance of the contract in accordance with the terms and intent thereof;

(2) Be in an amount not less than two months' rental and other charges, if any, required under the contract; provided that any contract for the sale and delivery of in bond merchandise at [~~Honolulu International Airport~~] Daniel K. Inouye International Airport shall require a bond in an amount not less than four months of the highest minimum annual rental guaranty required under the contract; and

(3) By its terms inure to the benefit of the State or of the county, as the case may be."

SECTION 3. Section 261-7, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) The department shall enter into a contract with no more than one person ("contractor") for the sale and delivery of in-bond merchandise at [~~Honolulu International Airport,~~] Daniel K. Inouye International Airport, in the manner provided by law. The contract shall confer the right to operate and maintain commercial facilities within the airport for the sale of in-bond merchandise and the right to deliver to the airport in-bond merchandise for sale to departing foreign-bound passengers.

The department shall grant the contract pursuant to the laws of this State and may take into consideration:

(1) The payment to be made on in-bond merchandise sold at [~~Honolulu International Airport~~] Daniel K. Inouye International Airport and on in-bond merchandise displayed or sold elsewhere in the State and delivered to the airport;

(2) The ability of the applicant to comply with all federal and state rules and regulations concerning the sale and delivery of in-bond merchandise; and

(3) The reputation, experience, and financial capability of the applicant.

The department shall actively supervise the operation of the contractor to ensure its effectiveness. The department shall develop and implement such guidelines as it may find necessary and proper to actively supervise the operations of the contractor, and shall include guidelines relating to the department's review of the reasonableness of contractor's price schedules, quality of merchandise, merchandise assortment, operations, and service to customers.

Apart from the contract described in this subsection, the department shall confer no right upon nor suffer nor allow any person to offer to sell, sell, or deliver in-bond merchandise at [~~Honolulu International Airport;~~] Daniel K. Inouye International Airport; provided that this section shall not prohibit the delivery of in-bond merchandise as cargo to the [~~Honolulu International Airport.~~] Daniel K. Inouye International Airport."

SECTION 4. Section 261-15.5, Hawaii Revised Statutes, is amended to read as follows:

"[[]§261-15.5[]] Aircraft registration. Unless an aircraft is exempted by this section, no person shall operate or cause or authorize to be operated any aircraft at an airport owned or controlled by the department, unless the aircraft has a certificate of registration issued in accordance with rules adopted by the department. Aircraft exempt from registration required by this section include:

(1) Aircraft operating primarily in interstate or foreign commerce;

(2) Aircraft owned or operated by the United States;

(3) Aircraft in transit through the State; and

(4) Aircraft operated by any scheduled airline carrier which is a lessee of the State under an airport-airline lease at the [~~Honolulu International Airport~~] Daniel K. Inouye International Airport and which is commonly referred to as signatory airline."

SECTION 5. Section 261-23, Hawaii Revised Statutes, is amended to read as follows:

"§261-23 [~~Honolulu International Airport.~~] Daniel K. Inouye International Airport. All that area set aside by executive order No. 1016 for John Rodgers Airport and Keehi Lagoon Seaplane Harbor to be under the control and management of the superintendent of public works under date of April 12, 1943, is designated as [~~"Honolulu International Airport".~~] "Daniel K. Inouye International Airport"."

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1428
TWENTY-SEVENTH LEGISLATURE, 2013
STATE OF HAWAII