Report Title:

Stadium; Replace Authority with Commission; Private Construction

Description:

Replaces the stadium authority with a stadium commission. Allows the commission to contract with a private entity to construct, operate, maintain, manage, and promote a new stadium. Allows for profit sharing between the State and the managing entity.

THE SENATE

S.B. NO.

1177

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to stadiums.

 

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

SECTION 1. The legislature finds since 1975, the fifty-thousand-seat Aloha Stadium has served as the home field to the only National Collegiate Athletic Association division I football program in the State.

While the stadium, which also can be transformed into a baseball configuration, has seen extensive use, questions remain as to whether the stadium remains viable physically and economically. The legislature in particular notes the problems that the stadium has had in the past with extensive rust damage.

The legislature further finds that the development of a new world-class stadium and related facilities to support athletic and cultural events will help to stimulate Hawaii's economy and attract new events to the State. In particular, the legislature finds that a public-private partnership could be used to construct a new stadium without the necessity for taxpayers to finance its construction, operation, or maintenance. A new stadium would also provide the infrastructure to stimulate the expansion of university athletics, attract more concerts and large-scale events, and further diversify tourism.

Accordingly, the purpose of this Act is to:

(1) Replace the stadium authority with a newly composed stadium commission;

(2) Allow the commission to contract with a private entity to construct, operate, maintain, manage, and promote a new stadium; and

(3) Allow for revenue sharing between the private entity and the State.

SECTION 2. Section 109-1, Hawaii Revised Statutes, is amended to read as follows:

"§109-1 Stadium [authority;] commission; appointment, terms. (a) There shall be within the department of accounting and general services for administrative purposes only, a stadium [authority] commission whose responsibility shall be to [maintain,]:

(1) Maintain, operate, and manage the stadium and attached facilities [attached thereto];

(2) Contract with a private entity for the construction, operation, maintenance, management, and promotion of a stadium and attached facilities as authorized in section 109-2(3)(B); and [to provide]

(3) Provide for the maintenance, operation, management, and promotion of the Kapolei recreational sports complex.

(b) The [authority] commission shall consist of [nine] the following five members who shall be appointed by the governor in the manner prescribed by section 26-34[.]:

(1) One member to be appointed from a list of nominees submitted by the president of the senate;

(2) One member to be appointed from a list of nominees submitted by the speaker of the house of representatives;

(3) One member to be appointed from a list of nominees submitted by the University of Hawaii board of regents;

(4) One member to be appointed from a list of nominees submitted by the council of the city and county of Honolulu; and

(5) One member of the private sector.

Each member of the [authority] commission 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 president of the University of Hawaii and the superintendent of education shall be ex officio members of the [authority] commission but shall not vote.

[(b)] (c) The chairperson of the [authority] commission shall be elected by [the] a majority of the [authority.] commission members. The term of each member shall be four years, provided that [of the members initially appointed three members shall serve for four years, three members shall serve for three years and the remaining three members shall serve for two years. No] no person shall be appointed consecutively to more than two terms as a member of the [authority.] commission. Vacancies shall be filled for the remainder of any unexpired term in the same manner as original appointments.

[(c)] (d) The members of the [authority] commission shall serve without compensation and shall be allowed their actual and necessary expenses incurred in the performance of their duties."

SECTION 3. Section 109-2, Hawaii Revised Statutes, is amended to read as follows:

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

(1) To maintain, operate, and manage the stadium and related facilities, and to provide for the maintenance, operation, management, and promotion of the Kapolei recreational sports complex;

(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, including entering into contracts under chapter 102 or 103D for [the]:

(A) The management of the Kapolei recreational sports complex, to include [but not be limited to] the operation, maintenance, and promotion of the complex in a manner that is beneficial to both the State and the contractor[.]; and

(B) The construction, operation, maintenance, management, and promotion of a stadium in a manner that is beneficial to both the State and the contractor, which may be used for all sports, business, cultural, or other activities and events, as appropriate, that may be conducted in a stadium.

These contracts may contain revenue sharing incentives based on increased usage of the stadium and complex;

(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 such qualifications as the [authority] commission deems necessary and who shall hold their respective offices at the pleasure of the [authority.] commission. The manager and deputy manager shall be exempt from the requirements of chapters 76 and 89. Effective [January 1, 1989, and January 1, 1990,] July 1, 2003, the salary of the manager shall be set by the governor within the range from [$69,748 to $74,608 and] $72,886 to $77,966 a year[, respectively]. Effective [January 1, 1989, and January 1, 1990,] July, 1, 2003, the salary of the deputy manager shall be [$62,854 and] $65,683 a year[, respectively]. The manager shall have full power to administer the affairs of the stadium and related facilities[,] and to provide for a management contract for the Kapolei recreational sports complex, subject to the direction and approval of the [authority.] commission. The manager [shall], subject to the approval of the [authority,] commission, shall have power to appoint, suspend, and discharge a secretary who shall be exempt from the requirements of chapters 76 and 89, and such other employees, subordinates, and assistants as may be necessary for the proper conduct of the business of the [authority.] commission. 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 plan, promote, and market the stadium, its related facilities, and the Kapolei recreational sports complex."

SECTION 4. Sections 109-3, 109-4, 109-5, 109-6, 109-7, and 109-9 are amended by substituting the word "commission" wherever the word "authority" occurs, as the context requires.

SECTION 5. All lists of nominees for appointment as commissioners shall be submitted to the governor not later than September 1, 2003. The governor shall appoint all members of the stadium commission not later than October 1, 2003.

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect on July 1, 2003.

INTRODUCED BY:

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