SB2951

SECTION 1. The legislature finds that under existing law, the Honolulu city council, as the council of the county in which all of the Hawaii community development authority community development districts are located, nominates individuals to be appointed by the governor to the Hawaii community development authority to represent the Heeia, Kalaeloa, and Kakaako community development districts. The Hawaii community development authority includes among its membership three representatives of the Kakaako community development district, including two residents of the district and one owner of a small business or one officer or director of a nonprofit organization in the district. The legislature further finds that in 2017, confusion arose amongst Honolulu city council members regarding the nomination process for the authority members representing the Kakaako community development district. Given the important responsibility of these members in determining the development of designated areas of the State, the legislature finds that the nomination process of these members and the members representing the other community development districts should be amended.

The purpose of this Act is to:

(1) Clarify the interests that must be represented by members of the Hawaii community development authority representing community development districts; and

(2) Replace the county council with the speaker of the house of representatives and the president of the senate as the nominating authorities for Hawaii community development authority members who are representatives of the several community development districts.

SECTION 2. 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~~] appointed by the governor from a list of three nominees submitted by the [~~senate~~] president[~~; an~~] of the senate;

(6) An at-large member [~~nominated~~] appointed by the governor from a list of three nominees submitted 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~~] -- one appointed from a list of no less than three nominees submitted by the president of the senate, and one appointed from a list of no less than three nominees submitted by the speaker of the house of representatives; and

(B) One owner or active manager of a small business or one officer or director of a nonprofit organization [in] located and doing business within the physical boundaries of 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~~] appointed from a combined list of no less than two nominees submitted by the president of the senate and no less than two nominees submitted by the speaker of the house of representatives;

(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~~] -- one appointed from a list of no less than three nominees submitted by the president of the senate, and one appointed from a list of no less than three nominees submitted by the speaker of the house of representatives; and

(B) One owner or active manager of a small business or one officer or director of a nonprofit organization [in] located and doing business within the physical boundaries of the Ewa or Waianae zone,[~~nominated by the county council of the county in which the Kalaeloa community development district is located; three~~] appointed from a combined list of no less than two nominees submitted by the president of the senate and no less than two nominees submitted by the speaker of the house of representatives;

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

(A) Two residents of the district [~~and one~~] -- one appointed from a list of no less than three nominees submitted by the president of the senate, and one appointed from a list of no less than three nominees submitted by the speaker of the house of representatives; and

(B) One owner or active manager of a small business or one officer or director of a nonprofit organization [in] located and doing business within the physical boundaries of the district, [~~nominated by the county council of the county in which the Kakaako community development district is located; the~~] appointed from a combined list of no less than two nominees submitted by the president of the senate and no less than two nominees submitted by the speaker of the house of representatives;

(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.

For the nine representatives of the several community development districts, no person shall be nominated for more than one seat.

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 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;

(3) For matters affecting the Kakaako 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 community development district;

(d) In the event of a vacancy, 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 shall constitute a quorum to do business, and the concurrence of a majority of all eligible voting members as specified in this subsection 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 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.~~] has less than employees on payroll within the physical boundaries of the district where its principal place of operations takes place.

[~~(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 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2018.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	2951
TWENTY-NINTH LEGISLATURE, 2018
STATE OF HAWAII