SB3334 SD2

PART I

SECTION 1. The legislature finds that the effective, efficient, and appropriate development and redevelopment of state lands is an important priority, both for the purposes of economic development and for the creation of new facilities that benefit the public. However, at present, land development expertise is fragmented and disbursed throughout state government. The office of planning and sustainable development and the Hawaii state energy office are a part of the department of business, economic development, and tourism, and the Hawaii green infrastructure authority is administratively attached to that department. The State's two real estate development agencies, the Hawaii housing finance and development corporation and Hawaii community development authority, are also administratively attached to the department of business, economic development, and tourism. The director of the office of planning and sustainable development and the executive director of the Hawaii housing finance and development corporation are the co-chairs of the Hawaii interagency council for transit-oriented development. The Hawaii technology development corporation is administratively attached to the department of business, economic development, and tourism and has recently become responsible for the development of the first responders campus on Oahu. The Hawaii tourism authority is also administratively attached to the department of business, economic development, and tourism and is considering redeveloping all or a part of the Hawaii convention center.

On the other hand, the stadium authority is currently attached to the department of accounting and general services and is responsible for the construction of a new stadium and the development of the area surrounding the stadium, which includes more than seventy acres, is adjacent to the new Honolulu rail line, and is currently used as a parking lot. Similarly, the school facility authority is currently attached to the department of education and is responsible for the development and redevelopment of school facilities and related state lands including potential mixed-use developments.

Consolidating the State's land development functions within the department of business, economic development, and tourism would centralize the State's land development expertise and thereby more efficiently use the State's limited financial resources and personnel.

Accordingly, the purpose of this Act is to improve the operation of state government by:

(1) Restoring the director of business, economic development, and tourism to the board of directors of the Hawaii tourism authority as an ex officio voting member;

(2) Transferring the stadium authority and the school facilities authority to the department of business, economic development, and tourism;

(3) Amending the Hawaii community development authority membership to include the director of business, economic development, and tourism and the director of the office of planning and permitting of each county, or their designee, in which a community development district is located; and

(4) Amending representatives on each community development district board from three to two at-large members.

PART II

SECTION 2. The purpose of this part is to add the director of business, economic development, and tourism to the board of the Hawaii tourism authority as an ex officio voting member.

SECTION 3. Section 201B-2, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The authority shall be headed by a policy-making board of directors that shall consist of twelve members; provided that:

(1) The members shall be appointed by the governor as provided in section 26-34, except as provided by this section;

(2) The members shall include at least one representative each from the city and county of Honolulu and the counties of Hawaii, Kauai, and Maui;

(3) Three members shall be appointed by the governor from a list of three names submitted for each appointment by the president of the senate, and three members shall be appointed by the governor from a list of three names submitted for each appointment by the speaker of the house of representatives; provided that if fewer than three names are submitted for each appointment, the governor may disregard the list;

(4) At least six members shall have knowledge, experience, and expertise in the area of accommodations, transportation, retail, entertainment, or attractions, and at least one member appointed by the governor shall have knowledge, experience, and expertise in the area of Hawaiian cultural practices; provided that no more than three members shall represent, be employed by, or be under contract to any sector of the industry represented on the board;

(5) One member shall be the director of business, economic development, and tourism, or the director's designee, who shall be an ex officio voting member;

[~~(5)~~] (6) The governor shall make appointments to ensure the fulfillment of all requirements of paragraphs (2) and (4); provided that upon the occurrence of a vacancy subject to paragraph (3), the governor shall notify the president of the senate and the speaker of the house of representatives of any unfulfilled requirements pursuant to paragraphs (2) and (4), and the president of the senate or the speaker of the house of representatives, as appropriate, shall submit nominees who fulfill those requirements; and

[~~(6)~~] (7) No person who has served as a member of the board of directors of the Hawaii Visitors and Convention Bureau shall be eligible to sit as a member of the board of directors of the Hawaii tourism authority until at least two years have expired between the person's termination from service on the Hawaii Visitors and Convention Bureau board and the person's appointment to the authority's board of directors."

SECTION 4. The amendments made to section 201B-2, Hawaii Revised Statutes, shall apply to any vacancy of a Hawaii tourism authority board of directors member appointed pursuant to section 201B-2(b)(2) or (4), Hawaii Revised Statutes, that occurs on or after the effective date of this Act.

PART III

SECTION 5. The purpose of this part is to:

(1) Transfer the stadium authority from the department of accounting and general services to the department of business, economic development, and tourism; and

(2) Make various amendments to chapter 206E, Hawaii Revised Statutes, to change the membership of the Hawaii community development authority, the composition of the various community development districts boards, and specify quorum requirements.

SECTION 6. Section 109-1, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) There shall be within the department of accounting and general services for administrative purposes only, a stadium authority whose responsibility shall be to maintain, operate, and manage the stadium [~~development district.~~] and facilities attached thereto. The authority shall consist of eleven members who shall be appointed by the governor in the manner prescribed by section 26-34.

Of the eleven members:

(1) One member shall be a resident of one of the following areas:

(A) Excluding Ford Island, the area beginning at the intersection of the shoreline and Admiral Clarey (Ford Island) Bridge and running:

(i) Easterly along said bridge to Salt Lake boulevard;

(ii) Southeasterly along said boulevard to Luapele drive;

(iii) Westerly along said drive to Fleet place;

(iv) Westerly along said place to Ulihi street;

(v) Southwesterly along said street to Luapele road;

(vi) Westerly along said road to Ulihi road;

(vii) Westerly along said road to Makalapa drive;

(viii) Southwesterly along said drive to Halawa drive;

(ix) Northwesterly along said drive to Kamehameha highway;

(x) Northerly along said highway to Halawa stream;

(xi) Westerly along said stream to the shoreline; and

(xii) Northerly along said shoreline to its intersection with Admiral Clarey (Ford Island) Bridge;

(B) The area beginning at the intersection of Kaonohi street and H-1 freeway and running:

(i) Southeasterly along said freeway to the Moanalua freeway - Kamehameha highway connector;

(ii) Northwesterly along said highway connector to Kamehameha highway;

(iii) Northwesterly along said highway to Aiea stream;

(iv) Southerly along said stream to the shoreline;

(v) Northwesterly along said shoreline to Kalauao stream;

(vi) Northeasterly along said stream to Kamehameha highway;

(vii) Northwesterly along said highway to Kaonohi street; and

(viii) Northeasterly along said street to its intersection with H-1 freeway; or

(i) Southeasterly along said ridge to Ewa‑Honolulu district boundary;

(ii) Southwesterly along said boundary to Red Hill Naval Reservation boundary;

(iii) Southwesterly along said boundary to Tampa drive;

(iv) Westerly along said drive to the unnamed road;

(v) Northerly along said road to Icarus way;

(vi) Westerly along said way to the unnamed road;

(vii) Southwesterly along said road to Moanalua freeway (H-201);

(viii) Westerly along said freeway to H-1 freeway;

(ix) Northwesterly along said freeway to Kaonohi street;

(x) Southwesterly along said street to Moanalua road;

(xi) Westerly along said road to Kaahumanu street;

(xii) Northerly along said street to Komo Mai drive;

(xiii) Easterly along said drive to Punanani gulch;

(xiv) Northeasterly along said gulch to the powerline;

(xv) Southeasterly along said powerline to Waimalu stream;

(xvi) Northeasterly along said stream to Aiea stream;

(xvii) Easterly along said stream to Waimalu stream; and

(xviii) Southeasterly along said stream to its intersection with Koolau ridge; and

(2) One member shall be from the area beginning at the intersection of H-1 freeway and Moanalua freeway (H‑201) and running:

(A) Southeasterly along said freeway to Aliamanu Military Reservation southern boundary;

(B) Westerly along said boundary to Wanaka street;

(D) Northwesterly along said street to Ukana street;

(E) Southwesterly along said street to Keaka drive;

(F) Northwesterly along said drive to Manuwa drive;

(G) Southeasterly along said drive to Pakini street;

(H) Southwesterly along said street to Keaka drive;

(I) Southerly along said drive to Puolo drive;

(J) Westerly along said drive to Likini street;

(K) Southerly along said street to Maluna street;

(L) Westerly along said street to Salt Lake boulevard;

(M) Southeasterly along said boulevard to the former street entrance to U.S. Naval Reservation;

(N) Southwesterly along said feature to Reeves loop;

(O) Southwesterly along said loop to Radford drive;

(P) Westerly along said drive to H-1 freeway; and

(Q) Northerly along said freeway to its intersection with Moanalua freeway (H-201).

Each member of the authority shall have been a citizen of the United States and a resident of the State for at least five years next preceding the member's appointment. The eleven members shall include the president of the University of Hawaii and the superintendent of education, who shall be ex officio members of the authority but shall not vote."

SECTION 7. Section 109-2, Hawaii Revised Statutes, is amended to read as follows:

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

(1) To repair, maintain, and operate stadium facilities [~~and the stadium development district~~], including:

(A) Repairs, maintenance, operations, and demolition of existing stadium facilities;

(B) Operations and maintenance of a new stadium; and

(2) To coordinate in planning, design, and construction activities, including on-site repairs, within the stadium [~~development district;~~] and facilities attached thereto;

(3) To acquire and hold title to real property;

(4) To prescribe and collect rents, fees, and charges for the use or enjoyment of the stadium, facilities related to the stadium, and real property held by the stadium authority, including entering into leases, contracts, sponsorship and advertising agreements, food and beverage agreements, concession agreements, parking agreements, or other development and use agreements that may apply; provided that leases shall not exceed a term of ninety-nine years;

(5) 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;

(6) 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;

(7) To appoint officers, agents, and employees, prescribe their duties and qualifications, and fix their salaries, without regard to chapters 76 and 89, to manage the stadium, the stadium development district, and its contractors; and

(8) To plan, promote, and market the stadium and related facilities."

SECTION 8. Section 206E-3, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The authority shall consist of the director of finance or the director's designee; the director of transportation or the director's designee; the director of the department of business, economic development, and tourism or the director's designee; the director of planning and permitting of each county in which a community development district is located or the director's designee; the chairperson of the board of land and natural resources or the chairperson's designee; a cultural specialist; [~~an at-large member;~~] an at-large member nominated by the [~~senate;~~] president of the senate; an at-large member nominated by the speaker of the house[;] of representatives; [~~three~~] two representatives of the Heeia community development district, comprising [~~two residents~~] one resident 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 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~~]; two representatives of the Kalaeloa community development district, comprising [~~two residents~~] one resident 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 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~~]; two representatives of the Kakaako community development district, comprising [~~two residents~~] one resident of the district and 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 community development district is located; 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 chairperson of the Hawaiian homes commission or the chairperson's designee, who shall serve in an ex officio, nonvoting capacity.]; and two representatives of the stadium community development district, consisting of one resident, and one owner of a small business or officer or director of a nonprofit organization in the following three areas:

(1) Excluding Ford Island, the area beginning at the intersection of the shoreline and Admiral Clarey (Ford Island) Bridge and running:

(A) Easterly along said bridge to Salt Lake boulevard;

(B) Southeasterly along said boulevard to Luapele drive;

(D) Westerly along said place to Ulithi street;

(E) Southwesterly along said street to Luapele road;

(F) Westerly along said road to Ulihi road;

(G) Westerly along said road to Makalapa drive;

(H) Southwesterly along said drive to Halawa drive;

(I) Northwesterly along said drive to Kamehameha highway;

(J) Northerly along said highway to Halawa stream;

(K) Westerly along said stream to Makalapa drive;

(L) Southwesterly along said drive to Halawa drive;

(M) Northwesterly along said drive to Kamehameha highway;

(N) Northerly along said highway to Halawa stream;

(O) Westerly along said stream to the shoreline; and

(P) Northerly along said shoreline to its intersection with Admiral Clarey (Ford Island) Bridge;

(2) The area beginning at the intersection of Kaonohi street and H—l freeway and running:

(A) Southeasterly along said freeway to the Moanalua freeway — Kamehameha highway connector;

(B) Northwesterly along said highway connector to Kamehameha highway;

(D) Southeasterly along said stream to the Moanalua freeway — Kamehameha highway connector;

(E) Northwesterly along said highway connector to Kamehameha highway;

(F) Northwesterly along said highway to Aiea Stream;

(G) Southerly along said stream to the shoreline;

(H) Northwesterly along said shoreline to Kalauao stream;

(I) Northeasterly along said stream to Kamehameha highway;

(J) Northwesterly along said highway to Kaonohi street; and

(K) Northeasterly along said street to its intersection with H—l freeway;

(3) The area beginning at the intersection of Waimalu stream and Koolau ridge and running:

(A) Southeasterly along said ridge to Ewa—Honolulu district boundary;

(B) Southwesterly along said boundary to Red Hill Naval Reservation boundary;

(D) Westerly along said drive to the unnamed road;

(E) Northerly along said road to Icarus way;

(F) Westerly along said way to the unnamed road;

(G) Southwesterly along said road to Moanalua freeway (H—201);

(H) Westerly along said freeway to H—l freeway;

(I) Northwesterly along said freeway to Kaonohi Street;

(J) Southwesterly along said street to Moanalua road;

(K) Westerly along said road to Kaahumanu street;

(L) Northerly along said street to Komo Mai drive;

(M) Easterly along said drive to Punanani gulch;

(N) Northeasterly along said gulch to the powerline;

(O) Southeasterly along said powerline to Waimalu stream;

(P) Northeasterly along said stream to Aiea Stream;

(Q) Easterly along said stream to Waimalu stream; and

(R) Southeasterly along said stream to its intersection with Koolau ridge; or

(4) The area beginning at the intersection of H—l freeway and Moanalua freeway (H—201) and running:

(A) Southeasterly along said freeway to Aliamanu Military Reservation southern boundary;

(B) Westerly along said boundary to Wanaka street;

(D) Northwesterly along said street to Ukana street;

(E) Southwesterly along said street to Keaka drive;

(F) Northwesterly along said drive to Manuwa drive;

(G) Southeasterly along said drive to Pakini street;

(H) Southwesterly along said street to Keaka drive;

(I) Southerly along said drive to Puolo drive;

(J) Westerly along said drive to Likini street;

(K) Southerly along said street to Maluna street;

(L) Westerly along said street to Salt Lake boulevard;

(M) Southeasterly along said boulevard to the former street entrance to U.S. Naval Reservation;

(N) Southwesterly along said feature to Reeves loop;

(O) Southwesterly along said loop to Radford drive;

(P) Westerly along said drive to H—l freeway; and

(Q) Northerly along said freeway to its intersection with Moanalua freeway (H—201).

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~~] the director of business, economic development, and tourism, or the director's designee, and the chairperson of the board of land and natural resources, shall be appointed by the governor pursuant to section 26-34. The two at-large members nominated by the [~~senate~~] president of the senate and speaker of the house [~~and the nine representatives of the respective community development districts~~] of representatives 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.

The president of the senate and the speaker of the house of representatives shall each submit a list of six nominees for each district to the governor to fill the two district representative positions on each community development district. Of the two nominees for each community development district, one nominee shall meet the district residency requirement and one nominee shall meet the district small business owner or nonprofit organization officer or director requirement. For each community development district, the governor shall appoint one member from a list of nominees submitted by the president of the senate, and one member from a list of nominees submitted by the speaker of the house of representatives.

The authority shall be organized and shall exercise jurisdiction as follows:

(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 director of planning and permitting for the county in which the Heeia community development district is located or the director's designee;

[~~(C)~~] (E) The cultural specialist;

[~~(D)~~] (F) The [~~three~~] two at-large members; and

[~~(E)~~] (G) The [~~three~~] two 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 director of planning and permitting for the county in which the Kalaeloa community development district is located or the director's designee;

[~~(C)~~] (E) The cultural specialist;

[~~(D)~~] (F) The [~~three~~] two at-large members; and

[~~(E)~~] (G) The [~~three~~] two 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 director of planning and permitting for the county in which the Kakaako community is located or the director's designee;

[~~(C)~~] (E) The cultural specialist;

[~~(D)~~] (F) The [~~three~~] two at-large members; and

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

(4) For matters affecting the stadium 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 director of planning and permitting for the county in which the stadium community development district is located or the director's designee;

(E) The cultural specialist;

(F) The two at-large members; and

(G) The two representatives of the stadium community development district.

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~~]; the director of business, economic development, and tourism; and the chairperson of the board of land and natural resources; 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.

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.

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

SECTION 9. Chapter 206E, Hawaii Revised Statutes, is amended by amending the title of part IX and section 206E-221 to read as follows:

"[[]PART IX.[]] STADIUM COMMUNITY DEVELOPMENT DISTRICT

[[]§206E-221[]] Stadium community development district; purpose; findings. The legislature finds that the approximately ninety-three-acre parcel comprising the land under the existing aloha stadium and [~~lands under the jurisdiction of the stadium authority and department of accounting and general services are~~] the land surrounding the existing aloha stadium is 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~~] this public [~~lands~~] land in a manner that will provide suitable recreational, residential, educational, and commercial areas, where the public can live, congregate, recreate, attend schools, and shop, as part of a thoughtfully integrated experience, is in the best interests of the State and its people.

This part establishes the stadium community development district to make optimal use of this public land for the economic, residential, educational, and social benefit of the people of Hawaii.

The legislature finds that the jurisdiction of the authority shall include development within the stadium community development district. Any development within the district shall require a permit from the authority."

SECTION 10. Section 206E-222, Hawaii Revised Statutes, is amended to read as follows:

"§206E-222 Definitions. As used in this part, unless the context otherwise requires:

[~~"Authority" or "stadium authority" means the stadium authority established pursuant to section 109-1.~~]

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

SECTION 11. Section 206E-223, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The stadium community development district is established and shall be composed of [~~all real property under the jurisdiction of the stadium authority established pursuant to section 109-1.~~] land surrounding the current aloha stadium, comprising approximately seventy-three acres. The [~~stadium~~] authority shall have sole jurisdiction over the development of the stadium community development district."

SECTION 12. Section 206E-224, Hawaii Revised Statutes, is amended to read as follows:

"§206E-224 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 stadium community development district development plans or transit-oriented development plans adopted by the [~~stadium~~] authority for the development of the district; provided that the plan or plans shall consider any county transit-oriented development plan and allow for public input in the plan's preparation and updates;

(2) The authority, upon the concurrence of a majority of its voting members, may modify and make changes to a transit-oriented development plan with respect to the district to respond to changing conditions; 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 use the opportunities presented by the high-capacity transit corridor project 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 coordinate activities in conjunction with the county and appropriate state agencies and may address facility systems, industrial relocation, and other activities;

(5) Archaeological, historic, and cultural sites shall be preserved and protected in accordance with chapter 6E;

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

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

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

SECTION 13. Section 206E-225, Hawaii Revised Statutes, is amended to read as follows:

"§206E-225 Stadium community development district governance; memorandum of agreement. [~~Notwithstanding sections 206E-3 and 206E-4.1, the stadium authority established pursuant to section 109-1 shall have sole jurisdiction regarding matters affecting the stadium development district; provided that the Hawaii community development~~] The authority[~~, department of accounting and general services, and stadium authority~~] and other state agencies [~~shall~~] may enter into a memorandum of agreement regarding the implementation of responsibilities of the respective agencies."

SECTION 14. Section 206E-226, Hawaii Revised Statutes, is amended to read as follows:

"[[]§206E-226[]] 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 community development district."

SECTION 15. Act 268, Session Laws of Hawaii 2019, section 6, as amended by section 5 of Act 4, Session Laws of Hawaii 2020, as amended by section 18 of Act 146, Session Laws of Hawaii 2021, is amended to read as follows:

"SECTION 6. The director of finance is authorized to issue general obligation bonds in the sum of [~~$170,000,000~~] $350,000,000 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 stadium authority for the stadium development district; provided that the appropriation made for the capital improvement project authorized by this section shall not lapse at the end of the fiscal year for which the appropriation is made; provided further that all moneys from the appropriation unencumbered as of June 30, 2024, shall lapse as of that date.

The sum appropriated shall be expended by the stadium authority for the purposes of this Act."

SECTION 16. All rights, powers, functions, and duties of the stadium authority and the department of accounting and general services as they relate to the stadium authority are transferred to the department of business, economic development, and tourism.

All officers and employees whose functions are transferred by this part shall be transferred with their functions and shall continue to perform their regular duties upon their transfer, subject to the state personnel laws and this part.

No officer or employee of the State having tenure shall suffer any loss of salary, seniority, prior service credit, vacation, sick leave, or other employee benefit or privilege as a consequence of this part, and such officer or employee may be transferred or appointed to a civil service position without the necessity of examination; provided that the officer or employee possesses the minimum qualifications for the position to which transferred or appointed; and provided that subsequent changes in status may be made pursuant to applicable civil service and compensation laws.

An officer or employee of the State who does not have tenure and who may be transferred or appointed to a civil service position as a consequence of this part shall become a civil service employee without the loss of salary, seniority, prior service credit, vacation, sick leave, or other employee benefits or privileges and without the necessity of examination; provided that such officer or employee possesses the minimum qualifications for the position to which transferred or appointed.

If an office or position held by an officer or employee having tenure is abolished, the officer or employee shall not thereby be separated from public employment, but shall remain in the employment of the State with the same pay and classification and shall be transferred to some other office or position for which the officer or employee is eligible under the personnel laws of the State as determined by the head of the department or the governor.

SECTION 17. All rules, policies, procedures, guidelines, and other material adopted or developed by the stadium authority or the department of accounting and general services to implement provisions of the Hawaii Revised Statutes that are reenacted or made applicable to the department of business, economic development, and tourism by this part shall remain in full force and effect until amended or repealed by the department of business, economic development, and tourism pursuant to chapter 91, Hawaii Revised Statutes.

In the interim, every reference to the stadium authority, department of accounting and general services, or comptroller in those rules, policies, procedures, guidelines, and other material is amended to refer to the department of business, economic development, and tourism or director of business, economic development, and tourism, as appropriate.

SECTION 18. All deeds, leases, contracts, loans, agreements, permits, or other documents executed or entered into by or on behalf of the stadium authority or the department of accounting and general services, pursuant to the provisions of the Hawaii Revised Statutes, that are reenacted or made applicable to the department of business, economic development, and tourism by this part shall remain in full force and effect. Upon the effective date of this part, every reference to the stadium authority, department of accounting and general services, or the comptroller therein shall be construed as a reference to the department of business, economic development, and tourism or the director of business, economic development, and tourism, as appropriate.

SECTION 19. All appropriations, records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by the stadium authority or the department of accounting and general services relating to the functions transferred to the department of business, economic development, and tourism shall be transferred with the functions to which they relate.

PART IV

SECTION 20. The purpose of this part is to transfer the school facilities authority from the department of education to the department of business, economic development, and tourism for administrative purposes.

SECTION 21. Section 302A-1702, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) There is established the school facilities authority, which shall be a body corporate and a public instrumentality of the State. The authority shall be placed within the department of business, economic development, and tourism for administrative purposes only."

SECTION 22. Section 302A-1704, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The board shall consist of five voting members. The director of business, economic development, and tourism or the director's designee shall be an ex officio voting member of the board. The remaining four members shall:

(1) Be appointed by the governor pursuant to section 26‑34;

(2) Have an interest in public school facilities;

(3) Include one member actively or previously engaged in the construction industry for at least five years; and

(4) Serve without compensation but may be reimbursed for expenses, including travel expenses, necessary for the performance of their duties."

SECTION 23. The amendments made to section 302A-1704(b), Hawaii Revised Statutes, shall apply to any vacancy of a school facilities authority board of directors member that occurs on or after the effective date of this Act.

SECTION 24. All rights, powers, functions, and duties of the department of education as they relate to the school facilities authority are transferred to the department of business, economic development, and tourism.

SECTION 25. All rules, policies, procedures, guidelines, and other material adopted or developed by the department of education to implement provisions of the Hawaii Revised Statutes that are reenacted or made applicable to the department of business, economic development, and tourism by this part shall remain in full force and effect until amended or repealed by the department of business, economic development, and tourism pursuant to chapter 91, Hawaii Revised Statutes.

In the interim, every reference to the department of education or superintendent in those rules, policies, procedures, guidelines, and other material is amended to refer to the department of business, economic development, and tourism or director of business, economic development, and tourism, as appropriate.

SECTION 26. All deeds, leases, contracts, loans, agreements, permits, or other documents executed or entered into by or on behalf of the department of education, pursuant to the provisions of the Hawaii Revised Statutes, that are reenacted or made applicable to the department of business, economic development, and tourism by this part shall remain in full force and effect. Upon the effective date of this part, every reference to the department of education or the superintendent therein shall be construed as a reference to the department of business, economic development, and tourism or the director of business, economic development, and tourism, as appropriate.

SECTION 27. 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 education relating to the functions transferred to the department of business, economic development, and tourism shall be transferred with the functions to which they relate.

PART V

SECTION 28. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 29. This Act shall take effect on July 1, 2050; provided that the department of business, economic development, and tourism's acquisition and recorded transfer of title of Mililani Tech Park Lot #17 pursuant to Act 40, Session Laws of Hawaii 2019, and Act 6, Session Laws of Hawaii 2020, is complete.

THE SENATE	S.B. NO.	3334
THIRTY-FIRST LEGISLATURE, 2022		S.D. 2
STATE OF HAWAII