Report Title:

Port Authority; Establish

Description:

Establishes a state port authority. Empowers the authority to administer a statewide system of harbors and airports. Establishes a port authority task force to review the consolidation of airport and harbor functions and draft necessary implementing legislation.

HOUSE OF REPRESENTATIVES

H.B. NO.

1578

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to a port authority.

 

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

SECTION 1. The legislature finds that Hawaii's sea and air transportation planning, management, and development functions are currently dispersed among the department of transportation's harbors and airports divisions, the department of land and natural resources' boating and ocean recreation program, and other agencies, including the department of health with respect to environmental concerns and the office of Hawaiian affairs concerning ceded lands issues.

The legislature further finds that this multijurisdictional situation has resulted in inefficiencies and conflicts over resources and uses that are difficult to resolve between agencies. In addition, this situation sometimes leads to conflicting plans of action among the different agencies to implement differing goals.

The legislature further finds that the economic well-being of the State depends in part on the efficient use of all of its air and sea transportation resources which will enhance and complement efforts to revitalize Hawaii's economy. The legislature believes that coordinated planning and development of sea and air transportation would be implemented more effectively by a single entity having overall consolidated jurisdiction.

In response to Senate Concurrent Resolution No. 214, H.D. 1 (1996), the governor convened the Hawaii maritime industry policy advisory task force within the office of the governor to examine several issues including "establishing a port authority to implement and administer maritime policy under the port authority". Subsequently, the task force submitted to the legislature its report that determined that the advantages of establishing a port authority outweighed the disadvantages of doing so. The advantages of establishing a port authority include:

(1) Providing an institutional mechanism to promote efficient allocation of waterfront resources;

(2) Focusing control and responsibility for waterfront resources within a single entity, thereby eliminating multi-agency oversight and jurisdiction;

(3) Providing an appropriate forum for all affected interests;

(4) Increasing efficiency in land utilization and related lease processes;

(5) Streamlining administrative processes;

(6) Making possible more responsive planning;

(7) Increasing financial flexibility; and

(8) Increasing responsiveness to customer needs and economic demands.

In addition to the findings of the 1996 task force, the legislature finds that the establishment of a port authority will assist in the following important statewide objectives:

(1) Increase security for the State. In the aftermath of the September 11, 2001, terrorist attacks, the legislature finds that there is a much greater need to coordinate all state security interests for airports and harbors at entry-points into the State;

(2) Improve the management of and increase funding for state harbors. The legislature finds that a port authority will improve not only the management of the State's harbors, but will allow the State to combine the resources of both the airports and harbors divisions of the department of transportation, thereby allowing the State to issue larger bonds to raise more money for the improvement of harbor infrastructure;

(3) Improve administrative efficiency. As noted by the 1996 task force, consolidating air and sea transportation functions in a single entity will help to streamline administrative processes, thereby making possible more responsive planning, increasing financial flexibility, and increasing responsiveness to customer needs and economic demands;

(4) Coordinate environmental issues affecting the airports and harbors, particularly relating to alien invasive species. The legislature finds that a port authority will be able to oversee everything that enters the State by air or sea, thereby allowing that entity to serve as the agency responsible for comprehensive alien invasive species protection and control; and

(5) Increase economic opportunities to the State, particularly relating to the cruise ship industry. The establishment of a port authority will enable the State to develop improved infrastructure and issue bonds to assist cruise ships and other industries that form a logical nexus to the sea and air transportation sectors. Although the interisland cruise industry collapsed when American Classic Voyages, which offered interisland tours and had plans for new ships, went bankrupt with the economic slump following the September 11 terrorist attacks, the legislature finds that a port authority could improve the islands' infrastructure for receive cruise ships, combined with an exception in federal law to allow foreign-built ships to operate in Hawaii under U.S. flags, could revive interisland cruises in the State.

The legislature finds that the rational allocation and administration of scarce and increasingly valuable waterfront and airport resources through the establishment of a port authority is vital for the well-being of the people and the economy of the State.

Accordingly, the purpose of this Act is to establish the Hawaii port authority, an independent public entity to set statewide policy on all matters relating to harbors and airports in Hawaii, and to transfer the functions, duties, and powers exercised by the department of transportation over commercial harbors and airports to the Hawaii port authority.

It is the intent of the legislature that the functions, duties, and staff of the departments and agencies currently charged with the responsibilities to be administered by the port authority will be eventually transferred to this authority. Because of the complexities involved with such a transfer, however, this Act establishes the authority and its board and also creates a temporary port authority task force within the office of the governor to draft legislation to implement this Act.

SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"CHAPTER

HAWAII PORT AUTHORITY

   -1 Definitions. As used in this chapter, unless the context indicates otherwise:

"Administrator" means the administrator of the port authority.

"Airport" means any area of land or water that is used, or intended for use, for the landing and taking off of aircraft, and any appurtenant areas that are used, or intended for use, for airport buildings or other airport facilities or rights-of-way, including approaches, together with all airport buildings and facilities located thereon.

"Commercial harbor" means a harbor or offshore mooring facility that is intended primarily for the movement of commercial cargo, and passenger and fishing vessels entering, leaving, or traveling within the State, and facilities and supporting services for the loading, off-loading, and handling of cargo, passengers, and vessels.

"Port authority" means the port authority of this State.

   -2 Port authority; establishment; members and administrator. (a) There is established the State of Hawaii port authority, which shall be a body corporate and a special political subdivision of the State for the purposes of this chapter. The port authority is placed within the department of budget and finance for administrative purposes only.

(b) The port authority shall consist of seven voting members. The administrator shall be an ex-officio voting member of the port authority. Two members shall be appointed by the governor pursuant to section 26-34, except as specifically provided to the contrary in this section. Two members shall be appointed by the governor from a list of            names provided by the senate; and two members shall be appointed by the governor from a list of            names provided by the house of representatives; provided that:

(1) Those members appointed by the governor from lists provided by the senate and the house of representatives shall be selected from lists of prospective appointees recommended by the county councils;

(2) The governor shall stagger the terms of those members appointed from lists provided by the senate and the house of representatives so there will always be one member from each county in office at all times; and

(3) Those members appointed by the governor from lists provided by the senate and the house of representatives shall be exempt from senate confirmation.

All members, except for the administrator, shall continue in office until their respective successors have been appointed and, if required, confirmed by the senate. The port authority shall establish bylaws providing for the automatic succession of a deputy administrator to the vacant post of administrator on an interim basis and until a permanent administrator is appointed. Except as provided in this chapter, no member appointed under this section shall be an officer or employee of the State or the counties.

(c) The port authority shall be headed by a single executive to be known as the administrator of the port authority. The administrator:

(1) Shall be appointed by the vote of not less than four members of the port authority, excluding the administrator;

(2) Shall be a voting member of the port authority; and

(3) May be removed from office by a vote of not less than four members of the port authority, excluding the administrator.

The administrator shall have such powers as are described in this chapter and as may be delegated by the members of the port authority. The administrator, with the majority consent of the members voting thereon, shall appoint a division chief for the port authority's airport responsibilities and a division chief for the port authority's harbor responsibilities. Each division chief shall exercise and discharge the division chief's respective responsibilities, whether or not in the administrator's presence, and shall not exercise the responsibilities of the other division chief. Each division chief shall report to, and be under the supervision of, the administrator. The administrator, with the majority consent of the members voting thereon, may appoint such deputy administrators as the administrator deems appropriate. Each deputy administrator shall exercise those powers that may be delegated by the administrator, whether or not in the administrator's presence. The administrator may hire staff and employees to fill positions that may be provided for in the port authority's annual budget. The functions and duties of all positions, and the discharge of any staff or employee hired by the administrator, shall be provided for in the bylaws of the port authority.

   -3 Powers; generally. (a) Except as otherwise provided in this chapter, the port authority:

(1) Shall exercise power and control over airports, air navigation facilities, buildings, and other facilities belonging to, or controlled by, the port authority to provide for:

(A) The landing, taking-off, and servicing of aircraft, and the loading and unloading of passengers and cargo;

(B) The comfort, accommodation, and convenience of air travelers; and

(C) Any matter related to the foregoing;

(2) Shall exercise power and control over all commercial harbors and roadsteads, and commercial harbor and waterfront improvements belonging to, or controlled by, the port authority, all vessels and shipping within the commercial harbors and roadsteads, and any matter related to the foregoing;

(3) Shall exercise such power and control over ferries as it may deem proper in carrying out its duties concerning water transportation in the State;

(4) Shall:

(A) Exercise general supervision over aeronautics within the State and, in connection therewith, encourage, foster, and assist in the development of aeronautics in the State, and encourage the establishment of airports and air navigation facilities;

(B) Cooperate with and assist the federal government and other persons in the development of aeronautics; and

(C) Seek to coordinate the aeronautical activities of the State with those activities of the federal government;

(5) May use the facilities and services of any department, board, commission, or agency of the State or counties;

(6) May sue and be sued;

(7) Shall have a seal and may alter the seal at its pleasure;

(8) May make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this chapter;

(9) Shall establish bylaws for its organization and internal management;

(10) Shall establish bylaws for the adoption of rules and shall adopt rules, through the administrator, to effectuate this chapter;

(11) Shall adopt an annual budget for its operations and maintenance program and its capital facilities program;

(12) Shall appoint, through the administrator, officers, agents, and employees; prescribe their duties and qualifications; and fix their salaries;

(13) May own, sell, lease, hold, clear, improve, and rehabilitate real, personal, or mixed property, and assign, exchange, transfer, convey, lease, sublease, or encumber any airport or commercial harbor, or any project, improvement, or facility related thereto;

(14) Shall develop, construct, reconstruct, rehabilitate, improve, alter, or repair, or provide for the development, construction, reconstruction, rehabilitation, improvement, alteration, or repair of, any airport or commercial harbor, or any project, improvement, or facility related thereto, and designate a qualified person as its agent for that purpose; and own, hold, assign, transfer, convey, exchange, lease, sublease, or encumber any airport or commercial harbor or any project, improvement, or facility related thereto;

(15) Shall arrange or initiate appropriate action for the planning, replanning, opening, grading, relocating, or closing of streets, roads, roadways, alleys, easements, piers, or other places; the furnishing of facilities; the acquisition of property or property rights; and the furnishing of property, development rights, or services in connection with any airport or commercial harbor, or any project, improvement, or facility related thereto;

(16) May grant options or renew any lease entered into by it in connection with any project, on terms and conditions as it deems advisable;

(17) May provide advisory, consultative, training, and educational services; technical assistance; and advice, to any person, either public or private, in order to carry out the purposes of this chapter, and engage the services of consultants on a contractual basis for rendering professional and technical assistance and advice;

(18) Shall procure insurance against any loss in connection with its property and other assets and operations, in such amounts and from such insurers as it deems desirable, or provide for self-insurance;

(19) May accept and receive gifts or grants in any form from any person, public entity, or source; provided that the grants and gifts shall be used for port authority purposes;

(20) May pledge or assign all or any part of the moneys, fees, rents, charges, or other revenues and proceeds derived by the port authority from the proceeds of insurance or condemnation awards for the loss of revenues or incurring of costs and expenses because of any action taken by the port authority;

(21) Shall impose, prescribe, and collect rates, rentals, fees, or charges for the lease, use, and services of its airport and commercial harbor facilities at least sufficient to pay the costs of operation, maintenance, and repair, if any, and the required payments of the principal of, and interest on, all bonds issued or assumed by the port authority and reserves therefor;

(22) May engage in economic development programs and contract with the department of business, economic development, and tourism or nonprofit corporations in the furtherance of economic development;

(23) May take all actions necessary under emergencies such as hurricanes, tsunamis, and other natural disasters;

(24) Shall plan, construct, operate, and maintain all commercial harbor and airport facilities in the State, including, but not limited to, the acquisition and use of lands necessary to stockpile dredged spoils without the approval of county agencies, notwithstanding any other law to the contrary;

(25) May issue revenue bonds and special facility revenue bonds in its name pursuant to chapter 39 without limitations, but not in excess of such principal amounts as are necessary for its purposes or specified in covenants with bondholders;

(26) May invest and secure its moneys in accordance with chapters 36 and 38;

(27) May take public and private property for use in furthering any of the purposes of the port authority or as otherwise provided by law; provided that all proceedings for condemnation shall be conducted in accordance with chapter 101;

(28) May provide compensation, allowance, or other assistance to any person for relocation or displacement caused by the acquisition of land for airport or commercial harbor purposes;

(29) May hire or contract law enforcement personnel, notwithstanding any other law to the contrary; and

(30) May do any and all things necessary to carry out its purposes and exercise the powers given to it in this chapter.

(b) Jurisdiction over aeronautics, airports, harbors, and maritime functions, including airport functions under the department of transportation's airports division, harbor and maritime functions under the department of transportation's harbors division, and the department of land and natural resources' boating and ocean recreation program, shall be transferred to the port authority on July 1, 2004."

SECTION 3. Port authority task force. (a) There is created a temporary port authority task force within the governor's office for administrative purposes, which shall be chaired by the governor or the governor's designee, and the following other members to be appointed by the governor:

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

(2) The chairperson of the board of natural resources, or the chairperson's designee;

(3) The director of health or the director's designee;

(4) The adjutant general or the adjutant general's designee;

(5) The chairperson of the board of trustees of the office of Hawaiian affairs or the chairperson's designee;

(6) The director of business, economic development, and tourism or the director's designee;

(7) Two members from a list of nominees submitted by the president of the senate;

(8) Two members from a list of nominees submitted by the speaker of the house of representatives;

(9) Four members, each representing the counties of Hawaii, Maui, and Kauai, and the city and county of Honolulu;

(10) Representatives of the following federal departments or agencies, who shall be requested to assist the task force:

(A) The United States Department of Defense;

(B) The United States Department of Homeland Security upon its implementation;

(C) The United States Environmental Protection Agency;

(D) The United States Coast Guard; and

(E) The Federal Aviation Administration;

(11) Representatives of labor organizations in Hawaii, including the Hawaii Government Employees Association, the United Public Workers, and the International Longshoremen's and Warehousemen's Union;

(12) Representatives from Hawaii's environmental community; and

(13) Other interested public or private stakeholders who the governor believes will be of assistance to the functions of the task force, including members having extensive knowledge, expertise, or experience in such areas as economics, finance, development, maritime issues, land transportation issues, airport planning issues, planning, labor, and related areas.

(b) The members of the task force shall serve without compensation, but shall be reimbursed for expenses, including travel expenses, necessary for the performance of their duties.

(c) The task force shall be convened by the governor or the governor's designee and shall accomplish the following tasks prior to December 31, 2003:

(1) Study the respective missions and roles of the affected departments and agencies to determine which existing departmental missions and roles can be eliminated, and which are legitimate, necessary, and must be preserved, either intact or modified, in the port authority;

(2) Determine and define which new missions and roles, if any, need to be created for the port authority;

(3) Determine which departmental agencies and programs must be preserved intact or modified to carry out the new missions and roles as determined in paragraph (2) by designing a new organizational structure for the port authority;

(4) Determine what policies need to be newly established, modified, or eliminated to guide the new port authority;

(5) Develop new duties, responsibilities, and powers of the new port authority;

(6) Ensure that no federal mandates, requirements, laws, or rules are violated and that no federal funding is jeopardized by the consolidation;

(7) Provide for the establishment of a port authority fund having separate accounts for airport and harbor functions;

(8) Provide for the imposition of fees to be assessed for arriving or departing passengers on vessels, to be used to fund infrastructure improvements;

(9) Address civil service issues, and ensure that no current personnel in the two departments are terminated by appropriate placements or transfers or other means;

(10) Address and resolve all other relevant public policy issues and objectives affecting the establishment of a port authority, including those relating to enhancing security, protecting the environment, improving government efficiency, ensuring effective enforcement, standardizing criteria regarding the sizes of vessels, and resolving all other appropriate federal, state, and county issues; and

(11) Draft necessary proposed legislation to implement the establishment of a Hawaii port authority.

(d) The task force shall perform its duties guided by the following principles:

(1) Providing user-friendly services;

(2) Use of best practices in management and operations;

(3) Use of economies of scale;

(4) Eliminating duplicative or outmoded functions and activities;

(5) Enhancing productivity;

(6) Eliminating unnecessary regulation;

(7) Redesigning processes to increase efficiency, cut costs, and reduce public inconvenience; and

(8) Realizing significant long-term savings.

(e) The members of the task force shall be appointed by the governor within thirty days of the effective date of this Act. The governor shall convene the first meeting of the task force no later than thirty days after the last member is appointed. The task force shall select its chairperson at its initial meeting.

(f) The task force shall submit to the legislature and the governor:

(1) An interim report on its progress no later than October 31, 2003; and

(2) A final report, including necessary proposed legislation to transfer the functions, powers, duties, lands, personal property, and personnel necessary to accomplish the purposes set forth in this Act, for passage and enactment during the regular session of 2004, at least twenty days prior to the convening of the regular session of 2004.

SECTION 4. It is the intent of this Act not to jeopardize the receipt of any federal aid nor to impair the obligation of the State or any agency thereof to the holders of any bond issued by the State or by any such agency, and to the extent, and only to the extent, necessary to effectuate this intent, the governor may modify the strict provisions of this Act, but shall promptly report any such modification with reasons therefor to the legislature at its next session thereafter for review by the legislature.

SECTION 5. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

SECTION 6. This Act shall be liberally construed in order to accomplish the purposes set forth herein. If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity shall not affect the other provisions or applications of this Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

SECTION 7. This Act shall take effect on July 1, 2003, except that section 2 shall take effect on July 1, 2004.

INTRODUCED BY:

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