REPORT TITLE:
Harbors Division


DESCRIPTION:
Allows harbors division to enter into cost-reimbursement
contracts with private developers for public improvements.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           975
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO HARBORS. 


BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The legislature finds that private development
 
 2 of harbor facilities on state lands should be encouraged to save
 
 3 taxpayers the burden of funding costly construction of
 
 4 improvement.  The legislature further finds that private
 
 5 development would more likely result in project being completed
 
 6 on time.
 
 7      The purpose of this Act is to allow the harbors division to
 
 8 enter into cost-containment contracts with private developers for
 
 9 public improvements of harbor facilities.
 
10      SECTION 2.  Chapter 266, Hawaii Revised Statutes, is amended
 
11 by adding a new section to part I to be appropriately designated
 
12 and to read as follows:
 
13      "�266-    Private financing of harbor improvements.  (a)
 
14 Notwithstanding any law to the contrary, the department of
 
15 transportation may enter into a cost-containment contract with a
 
16 private party for any public improvement to or construction of a
 
17 state harbor, commercial harbor, roadstead, or other waterfront
 
18 improvement belonging to or controlled by the State, if the
 
19 director of transportation determines that a cost-containment
 

 
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                                     S.B. NO.           975
                                                        
                                                        

 
 1 contract promotes the best interest of the State by a finding
 
 2 that:
 
 3      (1)  Private development is likely to be less costly than
 
 4           any other type of contract;
 
 5      (2)  Private development provides needed public improvements
 
 6           in a significant timely basis; or
 
 7      (3)  Public financing for public improvements is not
 
 8           available on a timely basis.
 
 9      (b)  A cost-containment contract under subsection (a) may be
 
10 financed by legislative appropriation to reimburse the private
 
11 party or by credit from the private party's future rental or
 
12 tariff payments to the State; provided that the terms of the
 
13 contract shall ensure that the State benefits financially from
 
14 the arrangement and that public use of the facility is
 
15 maintained.
 
16      (c)  A cost-containment contract under subsection (a) shall
 
17 be subject to the requirements of chapters 103 and 103D and
 
18 subject to the approval of the administrator of the state
 
19 procurement office, established under section 103D-204(a);
 
20 provided that all related transactions shall be subject to state
 
21 audit." 
 
22      SECTION 3.  New statutory material is underscored.
 
23      SECTION 4.  This Act shall take effect upon its approval.
 
24 
 
25                           INTRODUCED BY:  _______________________