2018-1963 HB1481 SD1 SMA

SECTION 1. The legislature finds that the Hawaii community development authority was established to meet the vast community development needs of providing suitable affordable housing, sufficient commercial and industrial facilities for rent, residential areas that have facilities necessary for basic liveability, such as parks and open space, and areas that are planned for mixed uses.

The legislature further finds that it is necessary to repeal the Kakaako community development district. The Kakaako area has gone through extensive replanning, renewal, and redevelopment, including plans to allow for development along the proposed rail transit line. Furthermore, the purpose of community development districts was to develop infrastructure to spur economic development. It was never the intent of the legislature to establish permanent community development districts.

The State owns hundreds of acres of land within the half-mile radius of the Kualaka‘i station's transit-oriented development zone. A majority of these lands lack the necessary infrastructure to develop transit-oriented development communities. As the Hawaii community development authority is the only agency that has successfully received funding to implement infrastructure improvements for development districts, the same functions of the Hawaii community development authority will assist other state agencies with their development plans in east Kapolei.

The purpose of this Act is to repeal the Kakaako community development district and establish the east Kapolei community development district under the Kualaka‘i station transit-oriented development plan approved by the county council of the city and county of Honolulu.

SECTION 2. Chapter 206E, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"PART . EAST KAPOLEI COMMUNITY DEVELOPMENT DISTRICT

§206E- District established; boundaries. The east Kapolei community development district is established. The district shall include the area within the boundaries established under the Kualaka‘i station transit-oriented development plan approved by the county council of the city and county of Honolulu.

§206E- East Kapolei community development district; guiding principles. The following development guiding principles shall generally govern the authority's actions in the east Kapolei community development district:

(1) Integrate transit into the communities and design and guide development to connect neighborhoods within the east Kapolei community development district;

(2) Create multi-modal and interconnected communities to give residents and visitors a range of transportation choices so that they can choose the most direct, efficient, and economical method of transportation;

(3) Create a diverse mix of uses and vibrant communities that are attractive to residents and visitors and encourage residents and visitors to park their automobiles and walk between the different shops, attractions, and restaurants;

(4) Create gathering places that are public spaces free to all and designed to give residents and visitors a sense of pride, connection to local culture, and ownership;

(5) Develop unique rail transit station areas that identify the east Kapolei region;

(6) Promote a variety of housing choices, including student housing, senior housing, live and work housing, and multi-family and single family housing for sale and rent within the east Kapolei community development district; and

(7) Create a dynamic urban environment that encourages residents and visitors to actively utilize the amenities provided at each rail transit station area and engages street life to reduce automobile usage and strengthen community social bonds.

§206E- East Kapolei community development revolving fund. (a) There is established in the state treasury the east Kapolei community development revolving fund, into which shall be deposited:

(1) All revenues, income, and receipts of the authority for the east Kapolei community development district, notwithstanding any other law to the contrary, including section 206E-16;

(2) Moneys directed, allocated, or disbursed to the east Kapolei community development district from government agencies or private individuals or organizations, including grants, gifts, awards, donations, and assessments of landowners for costs to administer and operate the east Kapolei community development district; and

(3) Moneys appropriated to the fund by the legislature.

(b) Moneys in the east Kapolei community development revolving fund shall be used for the purposes of this part.

(c) Investment earnings credited to the assets of the east Kapolei community development revolving fund shall become part of the assets of the fund."

SECTION 3. Section 171-30, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The board [~~of land and natural resources~~] shall have the exclusive responsibility, except as provided herein, of acquiring, including by way of dedications:

(1) All real property or any interest therein and the improvements thereon, if any, required by the State for public purposes, including real property together with improvements, if any, in excess of that needed for such public use in cases where small remnants would otherwise be left or where other justifiable cause necessitates the acquisition to protect and preserve the contemplated improvements, or public policy demands the acquisition in connection with such improvements[.]; and

(2) Encumbrances, in the form of leases, licenses, or otherwise on public lands, needed by any state department or agency for public purposes or for the disposition for houselots or for economic development.

The board [~~shall~~], upon the request of and with the funds from the state department or agency, shall effectuate all acquisitions as provided under this section.

The acceptance by the territorial legislature or the legislature of a dedication of land in the Kakaako community development district by a private owner is sufficient to convey title to the State[.] for conveyances executed prior to January 1, 2024."

SECTION 4. Section 206E-3, Hawaii Revised Statutes, is amended to read as follows:

"§206E-3 Hawaii community development authority; established. (a) There is established the Hawaii community development authority, which shall be a body corporate and a public instrumentality of the State, for the purpose of implementing this chapter. The authority shall be placed within the department of business, economic development, and tourism for administrative purposes.

(b) The authority shall consist of the following members:

(1) The director of finance or the director's designee; [~~the~~]

(2) The director of transportation or the director's designee; [a]

(3) A cultural specialist; [an]

(4) An at-large member; [an]

(5) An at-large member nominated by the senate president; [an]

(6) An at-large member nominated by the speaker of the house[~~; three~~] of representatives;

(7) Three representatives of the Heeia community development district, [~~comprising two~~] which shall consist of the following:

(A) Two residents of that district or the Koolaupoko district, which consists of sections 1 through 9 of zone 4 of the first tax map key division[,]; and [~~one~~]

(B) One owner of a small business or one officer or director of a nonprofit organization in the Heeia community development district or Koolaupoko district,

nominated by the county council of the county in which the Heeia community development district is located; [~~three~~]

(8) Three representatives of the Kalaeloa community development district, [~~comprising two~~] which shall consist of the following:

(A) Two residents of the Ewa zone (zone 9, sections 1 through 2) or the Waianae zone (zone 8, sections 1 through 9) of the first tax map key division[,]; and [~~one~~]

(B) One owner of a small business or one officer or director of a nonprofit organization in the Ewa or Waianae zone,

nominated by the county council of the county in which the Kalaeloa community development district is located; [~~three~~]

(9) Three representatives of the [~~Kakaako~~] east Kapolei community development district, [~~comprising two~~] which shall consist of the following:

(A) Two residents of the district; and [~~one~~]

(B) One owner of a small business or one officer or director of a nonprofit organization in the district,

nominated by the county council of the county in which the [~~Kakaako~~] east Kapolei community development district is located; [~~the~~]

(10) The director of planning and permitting of each county in which a community development district is located or the director's designee, who shall serve in an ex officio, nonvoting capacity; and [~~the~~]

(11) The chairperson of the Hawaiian homes commission or the chairperson's designee, who shall serve in an ex officio, nonvoting capacity.

All members except the director of finance, director of transportation, county directors of planning and permitting, and chairperson of the Hawaiian homes commission or their designees shall be appointed by the governor pursuant to section 26-34. The two at-large members nominated by the senate president and speaker of the house of representatives and the nine representatives of the respective community development districts shall each be appointed by the governor from a list of three nominees submitted for each position by the nominating authority specified in this subsection.

(1) For matters affecting the Heeia community development district, the following members shall be considered in determining quorum and majority and shall be eligible to vote:

(A) The director of finance or the director's designee;

(B) The director of transportation or the director's designee;

(D) The three at-large members; and

(E) The three representatives of the Heeia community development district;

provided that the director of planning and permitting of the relevant county or the director's designee shall participate in these matters as an ex officio, nonvoting member and shall not be considered in determining quorum and majority;

(2) For matters affecting the Kalaeloa community development district, the following members shall be considered in determining quorum and majority and shall be eligible to vote:

(A) The director of finance or the director's designee;

(B) The director of transportation or the director's designee;

(D) The three at-large members; and

(E) The three representatives of the Kalaeloa community development district;

provided that the director of planning and permitting of the relevant county and the chairperson of the Hawaiian homes commission, or their respective designees, shall participate in these matters as ex officio, nonvoting members and shall not be considered in determining quorum and majority; and

(3) For matters affecting the [~~Kakaako~~] east Kapolei community development district, the following members shall be considered in determining quorum and majority and shall be eligible to vote:

(A) The director of finance or the director's designee;

(B) The director of transportation or the director's designee;

(D) The three at-large members; and

(E) The three representatives of the [~~Kakaako~~] east Kapolei community development district;

[~~In the event of~~] (d) If a vacancy[,] occurs, a member shall be appointed to fill the vacancy in the same manner as the original appointment within thirty days of the vacancy or within ten days of the senate's rejection of a previous appointment, as applicable.

The terms of the director of finance, director of transportation, county directors of planning and permitting, and chairperson of the Hawaiian homes commission or their respective designees shall run concurrently with each official's term of office. The terms of the appointed voting members shall be for four years, commencing on July 1 and expiring on June 30; provided that the initial terms of all voting members initially appointed pursuant to Act 61, Session Laws of Hawaii 2014, shall commence on March 1, 2015. The governor shall provide for staggered terms of the initially appointed voting members so that the initial terms of four members selected by lot shall be for two years, the initial terms of four members selected by lot shall be for three years, and the initial terms of the remaining five members shall be for four years.

The governor may remove or suspend for cause any member after due notice and public hearing.

(e) Notwithstanding section 92-15, a majority of all eligible voting members as specified in this [~~subsection~~] section shall constitute a quorum to do business, and the concurrence of a majority of all eligible voting members as specified in this [~~subsection~~] section shall be necessary to make any action of the authority valid. All members shall continue in office until their respective successors have been appointed and qualified. Except as herein provided, no member appointed under this [~~subsection~~] section shall be an officer or employee of the State or its political subdivisions.

(f) For purposes of this section, "small business" means a business [~~which~~] that is independently owned and [~~which is~~] not dominant in its field of operation.

[~~(c)~~] (g) The authority shall appoint the executive director who shall be the chief executive officer. The authority shall set the salary of the executive director, who shall serve at the pleasure of the authority and shall be exempt from chapter 76.

[~~(d)~~] (h) The authority shall annually elect the chairperson and vice chairperson from among its members.

[~~(e)~~] (i) The members of the authority appointed under subsection (b) shall serve without compensation, but each shall be reimbursed for expenses, including travel expenses, incurred in the performance of their duties."

SECTION 5. Section 212-5.5, Hawaii Revised Statutes, is amended to read as follows:

"[[]§212-5.5[]] Foreign-trade zone; jurisdiction. [~~Anything to the contrary notwithstanding,~~] Notwithstanding any other law to the contrary, the department of business, economic development, and tourism shall have jurisdiction and administrative authority over the area in the vicinity of Piers 1 and 2 currently being used as a foreign-trade zone. This area is defined as all of parcels 2 and 3-A of the Forrest Avenue subdivision, as shown on the map filed in the bureau of conveyances of the State of Hawaii, as file plan 2335, and lot A-1, 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[~~; provided 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~~]."

SECTION 6. Section 266-1.5, Hawaii Revised Statutes, is amended to read as follows:

"[[]§266-1.5[]] Honolulu harbor Piers 1 and 2; jurisdiction. [~~Any law to the contrary notwithstanding,~~] Notwithstanding any other law to the contrary, the department of transportation shall have jurisdiction and administrative authority over Honolulu harbor Piers 1 and 2 and the contiguous backup fast lands currently used for manifested cargo and passenger operations. This area is defined as all of lot 3 and parcels 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 lot 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[~~; provided 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~~]."

SECTION 7. Chapter 206E, part II, Hawaii Revised Statutes, is repealed.

SECTION 8. No later than January 1, 2020, the Hawaii community development authority shall establish a plan to return planning, zoning, and infrastructure development responsibilities of the Kakaako district to the city and county of Honolulu. The plan shall include a transition schedule acceptable to the city and county of Honolulu. At a minimum, the plan shall address:

(1) The designation of functions to appropriate government entities, including the department of land and natural resources, department of transportation, and city and county of Honolulu;

(2) The disposition of unencumbered moneys deposited in state revolving or special funds applicable to the Kakaako district;

(3) The transfer of state officers and employees impacted by the transfer of responsibilities to the city and county of Honolulu;

(4) The disposition or amendment of rules, policies, procedures, guidelines, and other material applicable to the Kakaako district;

(5) The disposition of deeds, leases, contracts, loans, agreements, permits, and other documents executed by or on behalf of the Hawaii community development authority applicable to the Kakaako district;

(6) Funding recommendations to facilitate the transition; and

(7) The transition of personnel resources from the Kakaako community development district to the east Kapolei community development district to be documented as a special plan.

SECTION 9. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 10. This Act shall take effect upon its approval; provided that sections 2 through 7 shall take effect on July 1, 2024.

HOUSE OF REPRESENTATIVES	H.B. NO.	1481
TWENTY-NINTH LEGISLATURE, 2017		H.D. 1
STATE OF HAWAII		S.D. 1
		Proposed