SB3072.DOC

SECTION 1. The legislature finds that Hawaii's air transportation planning, management, marketing, and development functions are currently spread out among a number of agencies, including the department of transportation's airports division, Hawaii Tourism Authority, department of health with respect to environmental concerns, and office of Hawaiian affairs when ceded lands issues arise.

This multijurisdictional situation has resulted in inefficiencies and conflicts that are difficult to resolve between agencies. In addition, this situation sometimes leads to conflicting plans of action among the different agencies seeking to implement differing goals.

The economic well-being of the State depends in part on the efficient use of all of its air transportation resources, which will enhance and complement efforts to revitalize and sustain Hawaii's economy. The legislature believes that coordinated planning and development of air transportation would be implemented more effectively by a single entity having overall consolidated jurisdiction.

The legislature further finds that the establishment of an airport authority will assist in the following important statewide objectives:

(1) Increasing security for the State;

(2) Providing an appropriate forum for all affected interests;

(3) Increasing efficiency in land use and related lease processes;

(4) Improving administrative efficiency by streamlining administrative processes;

(5) Coordinating environmental issues affecting the airports, particularly relating to alien invasive species, as an airport authority will be able to oversee everything that enters the State by air, thereby allowing that entity to serve as the agency responsible for comprehensive alien invasive species protection and control;

(6) Increasing economic opportunities for the State in collaboration with the Hawaii Tourism Authority;

(7) Making possible more responsive planning;

(8) Increasing financial flexibility; and

(9) Increasing responsiveness to customer needs and economic demands.

The legislature finds that the rational allocation and administration of scarce and increasingly valuable airport resources through the establishment of an airport authority is vital for the well-being of the people and the economy of the State.

The purpose of this Act is to establish the Hawaii airport authority.

SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

HAWAII AIRPORT AUTHORITY

§ -1 Definitions. As used in this chapter:

"Administrator" means the administrator of the State of Hawaii airport authority.

"Aeronautics" shall have the same meaning as defined in section 261-1.

"Air navigation facility" shall have the same meaning as defined in section 261-1.

"Airport" means any area of land or water that is used, or intended for use, for the landing and taking-off of aircraft, and any appurtenant areas that are used, or intended for use, for airport buildings or other airport facilities or rights-of-way, including approaches, together with all airport buildings and facilities located thereon.

"Airport authority" means the State of Hawaii airport authority.

§ -2 Airport authority; establishment; members and administrator. (a) On July 1, 2017, there is established the State of Hawaii airport authority, which shall be a body corporate and a special political subdivision of the State for the purposes of this chapter. The airport authority shall be placed within the department of transportation for administrative purposes only.

(b) The airport authority shall consist of eight voting members, including the President and Chief Executive Officer of the Hawaii Tourism Authority. Two members shall be appointed by the governor pursuant to section 26-34. Two members shall be appointed by the governor from a list of names provided by the president of the senate; and two members shall be appointed by the governor from a list of names provided by the speaker of the house of representatives; provided that:

(1) The names on the lists provided by the president of the senate and the speaker of the house of representatives shall be selected from lists of prospective appointees recommended by the county councils; and

(2) The governor shall stagger the terms of those members appointed from the lists provided by the president of the senate and the speaker of the house of representatives so there shall always be one member from each county in office at all times.

The administrator shall be an ex-officio voting member.

All members, except for the administrator, shall continue in office until their respective successors have been appointed and, if required, confirmed by the senate.

Except as provided in this chapter, no member appointed under this section shall be an officer or employee of the State or the counties.

(c) The airport authority shall be headed by a single executive to be known as the administrator of the State of Hawaii airport authority. The administrator:

(1) Shall be appointed by the vote of not less than four members of the airport authority, excluding the administrator;

(2) Shall be a voting member of the airport authority; and

(3) May be removed from office by a vote of not less than four members of the airport authority, excluding the administrator.

The administrator shall have such powers as described in this chapter and as may be delegated by the members of the airport authority.

The administrator, with the consent of a majority of the members of the authority, may appoint such deputy administrators as the administrator deems appropriate. Each deputy administrator shall exercise those powers that may be delegated by the administrator.

The airport authority shall establish bylaws providing for, upon the vacancy of the position of administrator, the automatic succession of a deputy administrator on an interim basis and until a permanent administrator is appointed.

The administrator may hire staff and employees to fill positions that may be provided for in the airport authority's annual budget. The functions and duties of all positions shall be provided for in the bylaws of the airport authority.

(d) The number of members of the authority necessary to constitute a quorum to do business shall be a majority of the members.

§ -3 Powers; generally. Except as otherwise provided in this chapter, the airport authority:

(1) Shall exercise power and control over airports, air navigation facilities, buildings, and other facilities belonging to, or controlled by, the airport authority;

(2) Shall provide for the landing, taking-off, and servicing of aircraft, and the loading and unloading of passengers and cargo;

(3) Shall provide for the comfort, accommodation, and convenience of air travelers; and

(4) Shall exercise general supervision over aeronautics within the State and, in connection therewith, encourage, foster, and assist in the development of aeronautics in the state, and encourage the establishment of airports and air navigation facilities;

(5) Shall cooperate with and assist the federal government and other persons in the development of aeronautics;

(6) Shall seek to coordinate the aeronautical activities of the State with those activities of the federal government;

(7) May use the facilities and services of any department, board, commission, or agency of the State or counties;

(8) May sue and be sued;

(9) Shall have a seal and may alter the seal at its pleasure;

(10) May make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this chapter;

(11) Shall establish bylaws for its organization and internal management;

(12) Adopt rules pursuant to chapter 91 to carry out the purpose of this chapter;

(13) Shall adopt an annual budget for its operations and maintenance and capital improvements;

(14) Shall appoint officers, agents, and employees through the administrator; prescribe their duties and qualifications; and fix their salaries;

(15) May own, sell, lease, hold, clear, improve, and rehabilitate real, personal, or mixed property, and assign, exchange, transfer, convey, lease, sublease, or encumber any airport, or any project, improvement, or facility related thereto;

(16) Shall develop, construct, reconstruct, rehabilitate, improve, alter, or repair, or provide for the development, construction, reconstruction, rehabilitation, improvement, alteration, or repair of, any airport, or any project, improvement, or facility related thereto;

(17) Own, hold, assign, transfer, convey, exchange, lease, sublease, or encumber any airport or any project, improvement, or facility related thereto;

(18) Shall arrange or initiate appropriate action for the planning, opening, grading, relocating, or closing of streets, roads, roadways, alleys, easements, or other places; the furnishing of facilities; the acquisition of property or property rights; and the furnishing of property, development rights, or services in connection with any airport or any project, improvement, or facility related thereto;

(19) May grant options or renew any lease entered into by it in connection with any project, on terms and conditions as it deems advisable;

(20) May engage the services of consultants on a contractual basis for rendering professional and technical assistance and advice;

(21) Shall procure insurance against any loss in connection with its property and other assets and operations, in such amounts and from such insurers as it deems desirable, or provide for self-insurance;

(22) May accept and receive gifts or grants in any form from any person, public entity, or source; provided that the grants and gifts shall be used for airport authority purposes;

(23) May pledge or assign all or any part of the moneys, fees, rents, charges, or other revenues and proceeds derived by the airport authority from the proceeds of insurance or condemnation awards for the loss of revenues or incurring of costs and expenses because of any action taken by the airport authority;

(24) Shall impose, prescribe, and collect rates, rentals, fees, or charges for the lease, use, and services of its airport facilities at least sufficient to pay the costs of operation, maintenance, and repair, if any, and the required payments of the principal of, and interest on, all bonds issued or assumed by the airport authority and reserves therefor;

(25) May engage in economic development programs and contract with the department of business, economic development, and tourism or nonprofit corporations in the furtherance of economic development;

(26) May take all actions necessary under emergencies such as hurricanes, tsunamis, and other natural disasters;

(27) Shall plan, construct, operate, and maintain all airport facilities in the State, including the acquisition and use of lands necessary to stockpile dredged spoils without the approval of county agencies, notwithstanding any other law to the contrary;

(28) May issue revenue bonds and special facility revenue bonds in its name pursuant to chapter 39, but not in excess of such principal amounts as are necessary for its purposes or specified in covenants with bondholders;

(29) May invest and secure its moneys in accordance with chapters 36 and 38;

(30) May take public and private property for use in furthering any of the purposes of the airport authority or as otherwise provided by law; provided that all proceedings for condemnation shall be conducted in accordance with chapter 101;

(31) May provide compensation, allowance, or other assistance to any person for relocation or displacement caused by the acquisition of land for airport purposes;

(32) May hire or contract law enforcement personnel, notwithstanding any other law to the contrary; and

(33) May do any and all things necessary to carry out its purposes and exercise the powers given to it in this chapter."

SECTION 3. Section 261-2, Hawaii Revised Statutes, is amended to read as follows:

"§261-2 Development of aeronautics, general. The department of transportation shall have general supervision over aeronautics within the State[.]; provided that beginning July 1, 2017, the general supervision shall be transferred to the Hawaii airport authority; provided further that beginning July 1, 2017, the department of transportation shall retain administrative oversight of the Hawaii airport authority pursuant to chapter . It shall encourage, foster, and assist in the development of aeronautics in the State and encourage the establishment of airports and air navigation facilities. It shall cooperate with and assist the federal government and other persons in the development of aeronautics and shall seek to coordinate the aeronautical activities of the State with those of the federal government. Municipalities may cooperate with the department in the development of aeronautics and aeronautics facilities in the State."

SECTION 4. Jurisdiction over aeronautics, airports, including airport functions under the department of transportation's airports division, shall be transferred to the Hawaii airport authority on July 1, 2017.

SECTION 5. Beginning on July 1, 2017, the revisor of statutes shall substitute the "Hawaii airport authority" in chapter 261, Hawaii Revised Statutes, wherever the word "department" appears, except for the amendments made to section 261-2, Hawaii Revised Statutes, in section 3 of this Act.

SECTION 6. It is the intent of this Act not to jeopardize the receipt of any federal aid nor to impair the obligation of the State or any agency thereof to the holders of any bond issued by the State or by any such agency, and to the extent, and only to the extent, necessary to effectuate this intent, the governor may modify the strict provisions of this Act, but shall promptly report any such modification with reasons therefor to the legislature at its next session thereafter for review by the legislature.

SECTION 7. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 8. This Act shall be liberally construed to accomplish the purposes set forth herein. If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity shall not affect the other provisions or applications of this Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

SECTION 9. All rights, powers, functions, and duties of the department of department of transportation airports division are transferred to the Hawaii airport authority.

All employees who occupy civil service positions and whose functions are transferred to the Hawaii airport authority by this Act shall retain their civil service status, whether permanent or temporary. Employees shall be transferred without loss of salary, seniority (except as prescribed by applicable collective bargaining agreements), retention points, prior service credit, any vacation and sick leave credits previously earned, and other rights, benefits, and privileges, in accordance with state personnel laws and this Act; provided that the employees possess the minimum qualifications and public employment requirements for the class or position to which transferred or appointed, as applicable; provided further that subsequent changes in status may be made pursuant to applicable civil service and compensation laws.

Any employee who, prior to this Act, is exempt from civil service and is transferred as a consequence of this Act may retain the employee's exempt status, but shall not be appointed to a civil service position as a consequence of this Act. An exempt employee who is transferred by this Act shall not suffer any loss of prior service credit, vacation or sick leave credits previously earned, or other employee benefits or privileges as a consequence of this Act; provided that the employees possess legal and public employment requirements for the position to which transferred or appointed, as applicable; provided further that subsequent changes in status may be made pursuant to applicable employment and compensation laws. The director of transportation may prescribe the duties and qualifications of these employees and fix their salaries without regard to chapter 76, Hawaii Revised Statutes.

SECTION 10. All appropriations, records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by the department of transportation relating to the functions transferred to the Hawaii airport authority shall be transferred with the functions to which they relate.

SECTION 11. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 12. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	3072
TWENTY-EIGHTH LEGISLATURE, 2016
STATE OF HAWAII