SB3167

PART I

SECTION 1. Chapter 109, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part . stadium development district

§109-A Stadium development district; purpose; findings. The legislature finds that the aloha stadium and lands under the jurisdiction of the stadium authority and department of accounting and general services are underutilized. The stadium facility has been in dire need of significant repair and maintenance for many years. The stadium authority has considered repairing, upgrading, and replacing the existing facility to optimize the public's enjoyment and ensure public safety. Redeveloping, renovating, or improving these public lands in a manner that will provide suitable recreational, residential, educational, and commercial areas, where the public can live, congregate, recreate, and attend schools is in the best interest of the State.

§109-B Definitions. As used in this part, unless the context otherwise requires:

"Authority" means the stadium development authority.

"District" means the stadium development district established by this part.

§109-C District; established; boundaries. (a) The stadium development district is established and shall be composed of all land under the jurisdiction of the stadium authority established pursuant to section 109-1.

(b) The authority shall facilitate the development of all property belonging to the State within the district; provided that development is carried out in accordance with any county transit-oriented development plans for lands surrounding the district. In addition to any other duties that the authority may have pursuant to this chapter, the authority's duties shall include:

(1) Coordinating with the federal government regarding the ownership and use of, or restrictions on, properties within the district that were previously owned or are currently owned by the federal government;

(2) Coordinating with other state entities during the conveyance of properties and conducting remediation activities for the property belonging to the State within the district;

(3) Developing the infrastructure necessary to support the development of all property belonging to the State within the district; and

(4) Maximizing the opportunity, to the extent feasible, for private enterprise or the state or county government to reuse property belonging to the State within the district.

§109-D Development guidance policies. The following shall be the development guidance policies generally governing the authority's actions in the district:

(1) Development shall be in accordance with any county transit-oriented development plan, unless modified by the authority pursuant to paragraph (2);

(2) With the approval of the governor, the authority, upon the concurrence of a majority of its voting members, may modify and make changes to a transit-oriented development plan to respond to changing conditions within the district; provided that before amending a transit-oriented development plan, the authority shall conduct a public hearing to inform the public of the proposed changes and receive public input;

(3) The authority shall seek to promote economic development and employment opportunities by fostering diverse land uses and encouraging private sector investments that maximize the opportunities presented by the high-capacity transit corridor project, as consistent with the needs of the public, including mixed-use housing and housing in transit-oriented developments;

(4) The authority may engage in planning, design, and construction activities within and outside the district; provided that activities outside the district shall relate to infrastructure development, area-wide drainage improvements, roadway realignments and improvements, business and industrial relocation, and other activities the authority deems necessary to carry out development of the district and implement this part. The authority may undertake studies or coordinating activities in conjunction with the county or appropriate state agencies and may address facility systems, industrial relocation, and other development needs;

(5) The authority may enter into cooperative agreements with qualified persons or public agencies where the powers, services, and capabilities of those persons or agencies are deemed necessary and appropriate for the development of a stadium district plan;

(6) Hawaiian archaeological, historical, and cultural sites shall be preserved and protected;

(7) Endangered species of flora and fauna shall be preserved to the extent required by state and federal law;

(8) Land use and development activities within the district shall be coordinated with and, to the extent possible, shall complement existing county and state policies, plans, and programs affecting the district; and

(9) Public facilities within the district shall be planned, located, and developed to support the development policies established by this chapter for the district and any rules adopted pursuant to this chapter.

§109-E District-wide improvement program. (a) The authority shall develop a district-wide improvement program to identify necessary district-wide public facilities within a development district.

(b) Whenever the authority shall determine to undertake, or cause to be undertaken, any public facilities as part of the district-wide improvement program, the cost of providing the public facilities shall be assessed against the real property in the development district specifically benefitting from the public facilities. The authority shall determine the areas of the development district that will benefit from the public facilities to be undertaken and, if less than the entire development district will benefit, the authority may establish assessment areas within the development district. The authority may issue and sell bonds in amounts as may be authorized by the legislature to provide funds to finance public facilities. The authority shall fix the assessments against real property specifically benefitted. All assessments made pursuant to this section shall be a statutory lien against each lot or parcel of land assessed from the date of the notice declaring the assessment until paid, and the lien shall have priority over all other liens except the lien of property taxes. As between liens of assessments, the earlier lien shall be superior to the later lien.

(c) Bonds issued to provide funds to finance public facilities shall be secured solely by the real properties benefitted or improved, the assessments thereon, or by the revenues derived from the program for which the bonds are issued, including reserve accounts and earnings thereon, insurance proceeds, and other revenues, or any combination thereof. The bonds may be additionally secured by the pledge or assignment of loans and other agreements or any note or other undertaking, obligation, or property held by the authority. Bonds issued pursuant to this section and the income therefrom shall be exempt from all state and county taxation, except transfer and estate taxes. The bonds shall be issued according and subject to any rules adopted pursuant to this section.

(d) Notwithstanding any law to the contrary, in assessing real property for public facilities, the authority shall assess the real property within an assessment area according to the special benefits conferred upon the real property by the public facilities. These methods may include assessment on a frontage basis or according to the area of real property within an assessment area or any other assessment method that assesses the real property according to the special benefit conferred, or any combination thereof. No assessment levied against real property specifically benefited as provided by this chapter shall constitute a tax on real property within the meanings of any constitutional or statutory provisions.

(e) The authority shall adopt rules pursuant to chapter 91 and may amend the rules from time to time, to determine the method of undertaking and financing public facilities in an assessment area or an entire development district. The rules adopted pursuant to this section shall include the following:

(1) Methods by which the authority shall establish assessment areas;

(2) Methods of assessment for real properties specially benefitted;

(3) Costs to be borne by the authority, the county in which the public facilities are situated, and the property owners;

(4) Procedures relating to the creation of assessment areas, including provisions for petitions, bids, contracts, bonds, and notices;

(5) Provisions relating to assessments;

(6) Provisions relating to financing, such as bonds, revolving funds, advances from available funds, special funds for payment of bonds, payment of principal and interest, and sale and use of bonds;

(7) Provisions relating to funding and to refunding of outstanding debts; and

(8) Provisions relating to limitations on time to sue, and other related provisions.

(f) Notwithstanding any law to the contrary, the authority may enter into an agreement with the county in which the public facilities are located, to implement all or part of the purpose of this section.

(g) All sums collected under this section shall be deposited in the stadium development special fund established by section 109-F; except that notwithstanding section 109-F, all moneys collected on account of assessments and interest thereon for any specific public facilities financed by the issuance of bonds shall be set apart in a separate special account and applied solely to the payment of the principal and interest on these bonds; the cost of administering, operating, and maintaining the program; the establishment of reserves; and other purposes as may be authorized in the proceedings providing for the issuance of the bonds. If any surplus remains in any special account after the payment of the bonds chargeable against the special account, it shall be credited to and become a part of the stadium development special fund. Moneys in the stadium development special fund may be used to make up any deficiencies in the special account.

(h) If the public facilities to be financed through bonds issued by the authority may be dedicated to the county in which the public facilities are to be located, the authority shall ensure that the public facilities are designed and constructed to meet county requirements.

(i) Notwithstanding any law to the contrary, if, as part of a district-wide improvement program it becomes necessary to remove, relocate, replace, or reconstruct public utility facilities, the authority shall establish by rule the allocation of cost between the authority, the affected public utilities, and properties that may specifically benefit from each improvement, if any. In determining the allocation of costs, the authority shall consider the cost allocation policies for improvement districts established by the county in which the removal, relocation, replacement, or restriction is to take place.

§109-F Stadium development special fund. (a) There is established in the state treasury the stadium development special fund, into which shall be deposited:

(1) All revenues from the operations of the stadium development district;

(2) All proceeds from revenue bonds issued by the stadium authority; and

(3) All appropriations made by the legislature to the fund.

(b) Moneys in the stadium development special fund shall be used for development and operation expenses for the stadium development district.

§109-G District development rules. (a) The authority may establish district development rules under chapter 91 on health, safety, building, planning, zoning, and land use that, upon final adoption of a district development plan, shall supersede all other inconsistent ordinances and rules relating to the use, zoning, planning, and development of land and construction thereon. Rules adopted under this section shall follow existing laws, rules, ordinances, and regulations as closely as is consistent with minimum requirements of good design, pleasant amenities, health, safety, and coordinated development. The authority, in the district development plan or by a district development rule, may provide that lands within a development district shall not be developed beyond existing uses or that improvements thereon shall not be demolished or substantially reconstructed, or provide other restrictions on the use of the lands.

(b) Development rights under a master plan permit and master plan development agreement issued and approved by the authority are vested under the development district rules in effect at the time of initial approval by the authority and shall govern development on lands subject to the permit and agreement.

§109-H Use of public lands; acquisition of state lands. (a) If state lands under the control and management of other public agencies are required by the authority for its purposes, the agency having control and management of those required lands may, upon request by the authority and with the approval of the governor, convey or lease those lands to the authority upon terms and conditions as may be agreed to by the parties.

(b) Notwithstanding the foregoing, no public lands shall be conveyed or leased to the authority if the conveyance or lease would impair any covenant between the State or any county or any department or board thereof and the holders of bonds issued by the State or the county, department, or board.

§109-I Construction contracts. The authority shall award construction contracts in conformity with the applicable provisions of chapter 103D.

§109-J Sale or lease of redevelopment projects. (a) The authority, without recourse to public auction, may sell or lease for a term not exceeding ninety-nine years all or any portion of the real or personal property constituting a redevelopment project to any person upon such terms and conditions as may be approved by the authority; provided that the authority finds that the sale or lease is in conformity with the stadium development district plan.

(b) In the case of residential projects or redevelopment projects, the terms of sale shall provide for the repurchase of the property by the authority at its option if the purchaser, if other than a state agency, desires to sell the property within ten years; provided that this requirement may be waived by the authority if the authority determines that a waiver will not be contrary to the stadium development district plan. The authority shall establish at the time of original sale a formula setting forth the basis for calculating a repurchase price based on market considerations including but not limited to interest rates, land values, construction costs, and federal tax laws.

(c) If the purchaser of a residential project is a state agency, the authority may include as a term of sale a provision for the repurchase of the property in conformance with this section.

§109-K Residential projects; cooperative agreements. (a) If the authority deems it desirable to develop a residential project, it may enter into an agreement with qualified persons to construct, maintain, operate, or otherwise dispose of the residential project. Sale, lease, or rental of dwelling units in the project shall be as provided by the rules established by the authority. The authority may enter into cooperative agreements with the Hawaii housing finance and development corporation for the financing, development, construction, sale, lease, or rental of dwelling units and residential projects.

(b) The authority may transfer the housing fees collected from private residential developments for the provision of low- or moderate-income housing to the Hawaii housing finance and development corporation for the financing, development, construction, sale, lease, or rental of that housing within or without the development districts. The fees shall be used only for projects owned by the State or owned or developed by a qualified nonprofit organization. For the purposes of this section, "nonprofit organization" means a corporation, association, or other duly chartered organization registered with the State that has received charitable status under the Internal Revenue Code of 1986, as amended.

§109-L Exemption from taxation. The authority shall not be required to pay assessments levied by any county, nor shall the authority be required to pay state taxes of any kind.

§109-M Assistance by state and county agencies. Any state or county agency may render services upon request of the authority.

§109-N Issuance of bonds. The director of finance may, from time to time, issue general obligation bonds pursuant to chapter 39 in amounts as may be authorized by the legislature for the purposes of this chapter.

§109-O Annual comprehensive report. Not less than twenty days prior to the convening of each regular session of the legislature, the authority shall submit to the legislature an annual comprehensive status report on the progress of development within the stadium development district.

§109-P Violations and penalties. (a) The authority may set, charge, and collect reasonable fines for violation of this chapter or any rule adopted pursuant to chapter 91. Any person violating any provision of this chapter or any rule adopted thereunder for which violation a penalty is not otherwise provided, shall be fined not more than $500 a day and shall be liable for administrative costs incurred by the authority.

(b) The authority may maintain an action for an injunction to restrain any violation of this chapter and may take any other lawful action to prevent or remedy any violation.

(c) Any person violating this chapter, upon conviction, shall be punished by a fine not exceeding $1,000 or by imprisonment not exceeding thirty days, or both. The continuance of a violation after conviction shall be deemed a new offense for each day of the continuance."

SECTION 2. Chapter 109, Hawaii Revised Statutes, is amended by designating sections 109-1 to 109-8 as part I, entitled "Stadium Authority".

SECTION 3. Chapter 109, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows:

"§109- Definitions. As used in this chapter, the following terms have the following meanings, unless the context indicates a different meaning or intent:

"Authority" means the stadium authority established by section 109-1.

"County" means any county of the State.

"Development district" means a designated division of land placed under the jurisdiction of the authority for the purposes of redevelopment that is primarily owned by the State.

"District" means the stadium development district established by this part.

"Local governing body" means the county council.

"Project" has the same meaning as defined in section 206E‑2.

"Project cost" has the same meaning as defined in section 206E-2.

"Public agency" has the same meaning as defined in section 206E-2.

"Public facilities" has the same meaning as defined in section 206E-2.

"Qualified nonprofit housing trust" has the same meaning as defined in section 206E-2.

"Qualified person" has the same meaning as defined in section 206E-2.

"Real property" has the same meaning as defined in section 206E-2.

"Reserved housing" has the same meaning as defined in section 206E-2.

"Workforce housing" has the same meaning as defined in section 206E-2."

SECTION 4. Section 109-2, Hawaii Revised Statutes, is amended to read as follows:

"§109-2 Stadium authority; powers and duties. (a) The powers and duties of the stadium authority shall be as follows:

(1) To maintain, operate, and manage the stadium and related facilities;

(2) To prescribe and collect rents, fees, and charges for the use or enjoyment of the stadium or any of its facilities;

(3) To make and execute contracts and other instruments necessary or convenient to exercise its powers under this chapter and subject to any limitations in this chapter, to exercise all powers necessary, incidental, or convenient to carry out and effectuate the purposes and provisions of this chapter;

(4) To adopt, amend, and repeal in accordance with chapter 91 rules it may deem necessary to effectuate this chapter and in connection with its projects, operations, and facilities;

(5) To appoint a manager and a deputy manager who shall have qualifications as the authority deems necessary and who shall hold their respective offices at the pleasure of the authority. The manager and deputy manager shall be exempt from the requirements of chapters 76 and 89. Effective July 1, 2005, the manager shall be paid a salary not to exceed eighty-seven per cent of the salary of the director of human resources development. Effective July 1, 2005, the deputy manager shall be paid a salary not to exceed eighty-five per cent of the manager's salary. The manager shall have full power to administer the affairs of the stadium and related facilities, subject to the direction and approval of the authority. The manager shall, subject to the approval of the authority, have power to appoint, suspend, and discharge a secretary who shall be exempt from the requirements of chapters 76 and 89, and other employees, subordinates, and assistants as may be necessary for the proper conduct of the business of the authority. Except for persons hired on contract or otherwise as provided in section 109-3 and except for the manager, deputy manager, and secretary, all appointments, suspensions, or discharges shall be made in conformity with the applicable provisions of chapter 76; [~~and~~]

(6) To appoint a stadium development district manager and deputy manager who shall have such qualifications as the authority deems necessary and who shall hold their respective offices at the pleasure of the authority. The stadium development district manager and deputy manager shall be exempt from the requirements of chapters 76 and 89. The stadium development district manager shall have full power to administer the affairs of the stadium development district, subject to the discretion and approval of the authority. The manager shall, subject to the approval of the authority, have the power to appoint, suspend, and discharge a secretary who shall be exempt from the requirements of chapters 76 and 89 and other employees, subordinates, and assistants as may be necessary for the proper conduct of the business of the authority. Except for persons hired on contract or otherwise, as provided in section 109-3, and except for the manager, deputy manager, and secretary, all appointments, suspensions, or discharges shall be made in conformity with the applicable provisions of chapter 76;

[~~(6)~~] (7) To plan, promote, and market the stadium and related facilities[.];

(8) To acquire, reacquire, or contract to acquire or reacquire by grant or purchase real, personal, or mixed property or any interest therein; to own, hold, clear, improve, and rehabilitate and to sell, assign, exchange, transfer, convey, lease, or otherwise dispose of or encumber the same;

(9) To acquire or reacquire by condemnation real, personal, or mixed property or any interest therein for public facilities, including but not limited to streets, sidewalks, parks, schools, and other public improvements;

(10) To acquire, reacquire, construct, reconstruct, rehabilitate, improve, alter, or repair or provide for the acquisition, reacquisition, construction, reconstruction, rehabilitation, improvement, alteration, or repair of any project, by itself or in partnership with a qualified person; to own, hold, sell, assign, transfer, convey, exchange, lease, or otherwise dispose of or encumber any project, and in the case of the sale of any project, accept a purchase money mortgage in connection therewith; and repurchase or otherwise acquire any project that the authority has sold or otherwise conveyed, transferred, or disposed of;

(11) To arrange or contract for the planning, replanning, opening, grading, or closing of streets, roads, roadways, alleys, or other places; for the furnishing of facilities; for the acquisition of property or property rights; or for the furnishing of property or services in connection with a project;

(12) To grant options to purchase any project or to renew any lease entered into by the authority in connection with any of its projects, on terms and conditions as the authority deems advisable;

(13) To prepare or cause to be prepared plans, specifications, designs, and cost estimates for the construction, reconstruction, rehabilitation, improvement, alteration, or repair of any project, and, from time to time, to modify the plans, specifications, designs, or estimates;

(14) To procure insurance in amounts and from insurers as the authority deems advisable against any loss in connection with the authority's property and other assets and operations;

(15) To contract for and accept gifts or grants in any form from any public agency or from any other source; and

(16) To allow satisfaction of any affordable housing requirements imposed by the authority upon any proposed development project through the construction of reserved housing by a person on land located outside the geographic boundaries of the authority's jurisdiction; provided that the authority may permit cash payments in lieu of providing reserved housing. The substituted housing shall be located on the same island as the development project and shall be substantially equal in value to the required reserved housing units that were to be developed on site. The authority shall adopt rules relating to the approval of reserved housing that is developed outside of a development district. The rules shall include guidelines to ensure compliance with the following location priorities:

(A) Within the development district;

(B) Within areas immediately surrounding the development district;

(D) Within outlying areas of the same island as the development project.

(b) Notwithstanding any law to the contrary, the authority shall not assign to any person or agency, including the stadium development district manager, any of its powers and duties related to the approval of any variance, exemption, or modification of any provision of a stadium development district plan or stadium development district rules."

SECTION 5. Section 171-2, Hawaii Revised Statutes, is amended to read as follows:

"§171-2 Definition of public lands. "Public lands" means all lands or interest therein in the State classed as government or crown lands previous to August 15, 1895, or acquired or reserved by the government upon or subsequent to that date by purchase, exchange, escheat, or the exercise of the right of eminent domain, or in any other manner; including lands accreted after May 20, 2003, and not otherwise awarded, submerged lands, and lands beneath tidal waters that are suitable for reclamation, together with reclaimed lands that have been given the status of public lands under this chapter, except:

(1) Lands designated in section 203 of the Hawaiian Homes Commission Act, 1920, as amended;

(2) Lands set aside pursuant to law for the use of the United States;

(3) Lands being used for roads and streets;

(4) Lands to which the United States relinquished the absolute fee and ownership under section 91 of the Hawaiian Organic Act prior to the admission of Hawaii as a state of the United States unless subsequently placed under the control of the board of land and natural resources and given the status of public lands in accordance with the state constitution, the Hawaiian Homes Commission Act, 1920, as amended, or other laws;

(5) Lands to which the University of Hawaii holds title;

(6) Lands to which the Hawaii housing finance and development corporation in its corporate capacity holds title;

(7) Lands to which the Hawaii community development authority in its corporate capacity holds title;

(8) Lands set aside by the governor to the Hawaii public housing authority or lands to which the Hawaii public housing authority in its corporate capacity holds title;

(9) Lands to which the department of agriculture holds title by way of foreclosure, voluntary surrender, or otherwise, to recover moneys loaned or to recover debts otherwise owed the department under chapter 167;

(10) Lands that are set aside by the governor to the Aloha Tower development corporation; lands leased to the Aloha Tower development corporation by any department or agency of the State; or lands to which the Aloha Tower development corporation holds title in its corporate capacity;

(11) Lands that are set aside by the governor to the agribusiness development corporation; lands leased to the agribusiness development corporation by any department or agency of the State; or lands to which the agribusiness development corporation in its corporate capacity holds title;

(12) Lands to which the Hawaii technology development corporation in its corporate capacity holds title; [~~and~~]

(13) Lands to which the department of education holds title; and

(14) Lands to which the stadium authority holds title;

provided that, except as otherwise limited under federal law and except for state land used as an airport as defined in section 262-1, public lands shall include the air rights over any portion of state land upon which a county mass transit project is developed after July 11, 2005."

SECTION 6. Chapter 206E, part IX, Hawaii Revised Statutes, is repealed.

PART II

SECTION 7. Act 268, Session Laws of Hawaii 2019, is amended by adding a new section to read as follows:

"SECTION 7A. With the approval of the governor, the stadium authority as designated expending agency for capital improvement projects authorized in this Act may delegate to other state agencies the implementation of projects when it is determined advantageous to do so by both the stadium authority as the original expending agency and the agency to which expending authority is to be delegated."

SECTION 8. Act 268, Session Laws of Hawaii 2019, is amended as follows:

1. By amending section 4 to read:

"SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $20,000,000 or so much thereof as may be necessary for fiscal year 2019-2020 for the establishment and development of the stadium development district for public use.

The sum appropriated shall be expended by the [~~Hawaii community development authority~~] stadium authority for the purposes of this [~~act;~~] Act; provided that the appropriation shall not lapse at the end of the fiscal year for which the appropriation is made; provided further that all moneys unencumbered as of June 30, 2022, shall lapse as of that date."

2. By amending section 5 to read:

"SECTION 5. The legislature finds and declares that the issuance of revenue bonds under this Act is in the public interest and for the public health, safety, and general welfare[~~. Pursuant~~] pursuant to part II, chapter 39, Hawaii Revised Statutes. Accordingly, the [~~Hawaii community development authority,~~] stadium authority, with the approval of the governor, may issue in one or more series revenue bonds in a total amount not to exceed $180,000,000 for the [~~Hawaii community development authority~~] stadium authority to implement the stadium development district as provided for in part , chapter [~~206E,~~] 109, Hawaii Revised Statutes.

The revenue bonds authorized under this Act shall be issued pursuant to part III, chapter 39, Hawaii Revised Statutes. The authorization to issue revenue bonds under this Act shall lapse on June 30, 2024."

3. By amending section 6 to read:

"SECTION 6. The director of finance is authorized to issue general obligation bonds in the sum of $150,000,000 or so much thereof as may be necessary and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2019-2020 to the [~~Hawaii community development authority~~] stadium authority for the stadium development district."

PART III

SECTION 9. There is appropriated out of the general revenues of the State of Hawaii the sum of $1,000,000 or so much thereof as may be necessary for fiscal year 2020-2021 to carry out the purposes of this Act.

The sum appropriated shall be expended by the department of accounting and general services; provided that the appropriation shall not lapse at the end of the fiscal year for which the appropriation is made; provided further that all moneys unencumbered as of June 30, 2022, shall lapse as of that date.

SECTION 10. In codifying the new sections added by section 1 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 11. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 12. This Act shall take effect on July 1, 2020.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	3167
THIRTIETH LEGISLATURE, 2020
STATE OF HAWAII