Report Title:

State Resources Protection and Development Agency

 

Description:

Creates the state resources protection and development agency to house functions currently under the Aloha Tower development corporation, the state planning office, and the Hawaii community development corporation.  (SD1)

 


THE SENATE

S.B. NO.

1314

TWENTY-FIFTH LEGISLATURE, 2009

S.D. 1

STATE OF HAWAII

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO THE STRUCTURE OF STATE GOVERNMENT.

 

 

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

 


PART I

     SECTION 1.  The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"CHAPTER

STATE RESOURCES PROTECTION AND DEVELOPMENT AGENCY

PART I.  GENERAL PROVISIONS

     §   ‑A  Purpose.  The purpose of this chapter is to create a new agency having the functions and duties of the Aloha Tower development corporation, office of planning, and Hawaii community development authority, that existed prior to the effective date of this Act.

     §   ‑B  Definitions.  As used in this chapter:

     "Agency" means the state resources protection and development agency.

     "Department" means the department of business, economic development, and tourism.

     "Director" means the director of the state resources protection and development agency.

     §   ‑C   Establishment of the agency; director; rules.  (a)  There is established the state resources protection and development agency, to be administratively placed under the department.

     (b)  There shall be a director to be appointed by the governor with the advice and consent of the senate, and subject to the term of office as provided in section 26-34.

     (c)  The agency shall adopt rules pursuant to chapter 91 necessary for purposes of this chapter.

     §   ‑D  Powers and duties of the agency.  The agency shall have the powers, duties, and functions heretofore exercised by the:

     (1)  Aloha Tower development corporation under chapter 206J;

     (2)  Office of planning under chapters 205A and 225M; and

     (3)  Hawaii community development authority under chapter 206E.

     §   ‑E  State resources protection and development revolving fund.  There is created the state resources protection and development agency revolving fund into which all receipts and revenues of the authority shall be deposited.  Proceeds from the fund shall be used for the purposes of this chapter.

PART II.  ALOHA TOWER

     §   ‑F  State resources Aloha Tower fund.  There is created the Aloha Tower fund.  All:

     (1)  Moneys;

     (2)  Rentals;

     (3)  Charges;

     (4)  Other revenues of the Aloha Tower development corporation; and

     (5)  Moneys or charges received by the department of business, economic development, and tourism;

including reimbursements for costs and staff services as a result of planning, development, or redevelopment of the lands located seaward of Nimitz Highway between Pier 4 and the Honolulu International Airport shall be deposited into the fund.

     §   ‑G  Aloha Tower.  (a)  The agency shall be responsible for the development, planning, construction, improvement, repair, and reconstruction of projects within the Aloha Tower complex as follows:  the area bounded by Nimitz Highway beginning at its intersection with the Diamond Head boundary of tax map key 2-1-13:7 north along Nimitz Highway to its intersection with the makai boundary of tax map key 1‑7‑1:6; northeast along River Street to its intersection with King Street; north along King Street to its intersection with Iwilei Road west along Iwilei Road to its intersection with Nimitz Highway at the Ewa makai corner of tax map key 1‑5‑08:1; south along Nimitz Highway to its intersection with the boundary between tax map key 1-5-8:1 and tax map key 1‑5‑8:9; west along a line to the Diamond Head mauka corner of tax map key 1-5-40:4; west along Nimitz Highway to its intersection with the Ewa boundary of tax map key 1-5-38:4; south along the Ewa boundaries of tax map key 1-5-38:4 and 1‑5‑38:5 to Honolulu Harbor; east along the waterfront boundary of tax map key 1-5-38:5 to Pier 23; south along Pier 23 to the southwest end of Pier 22; continuing along a line in the same direction to its intersection with the Honolulu Harbor Federal Project Line; northeast along the Honolulu Harbor Federal Project Line to a point in Honolulu Harbor 475 feet perpendicular to Pier 11; southwest along a line parallel to Piers 10 and 11 to its intersection with a line extending from the southwest end of Pier 22 to the point of intersection of the Honolulu Harbor Federal Project Line and a line extending along Pier 8 into Honolulu Harbor; southeast along a line to the point of intersection of the Honolulu Federal Project Line and a line extending along Pier 8 into Honolulu Harbor; southeast along the Honolulu Harbor Federal Project Line to its intersection with a line extending along Pier 4 into Honolulu Harbor; east along a line from that intersection and along Pier 4 to its intersection with Nimitz Highway; north along Nimitz Highway to its intersection with Richards Street; southwest along Richards Street to its intersection with Ala Moana Boulevard; northwest along Ala Moana Boulevard to its intersection with the Ewa boundary of tax map key 2‑1‑14:6; northeast along the Ewa boundary of tax map key 2‑1‑14:6 to its Ewa mauka corner; and northwest across Bishop Street to the point of beginning at the intersection of the Diamond Head boundary of tax map key 2‑1‑13:7 and Nimitz Highway.  The complex shall also include the area bounded by Iwilei Road beginning with its intersection with Nimitz Highway; west along Iwilei Road to its intersection with Pacific Street; southeast along Pacific Street to its intersection with the Ewa mauka corner of tax map key 1‑5‑38:4; east along Nimitz Highway to its intersection with the Diamond Head mauka corner of tax map key 1-50-40:4; east along a line to the point of intersection at the boundary between tax map key 1‑5‑8:1 and tax map key 1-5-8:9; north along Nimitz Highway to the point of beginning at the intersection of Nimitz Highway and Iwilei Road; all fast and submerged lands contained within these areas shall also be included.

     (b)  The agency, with the approval of the governor, may issue bonds in such amounts as authorized from time to time by law as deemed advisable for any of its purposes.  Any bonds issued by the Aloha Tower development corporation prior to January 1, 2010, shall be deemed to be issued in the name of the state resources protection and development agency on January 1, 2010.

PART III.  STATE PLANNING

     §   ‑H  State planning; responsibilities.  The agency shall be responsible for:

     (1)  Planning, gathering, analyzing, and providing information to the governor and the legislature to assist in the overall analysis and formulation of state policies and strategies to provide central direction and cohesion in the allocation of resources and effectuation of state activities and programs and effectively address current or emerging issues and opportunities;

     (2)  Formulating and articulating comprehensive statewide goals, objectives, policies, and priorities, and coordinating their implementation through the statewide planning system established in part II of chapter 226;

     (3)  Identifying and analyzing significant issues, problems, and opportunities confronting the State, and formulating strategies and alternative courses of action in response to identified problems and opportunities;

     (4)  Providing in-depth policy research, analysis, and recommendations on existing or potential areas of critical state concern;

     (5)  Examining and evaluating the effectiveness of state programs in implementing state policies and priorities;

     (6)  Monitoring through surveys, environmental scanning, and other techniques--current social, economic, and physical conditions and trends relating to the State;

     (7)  Developing, in collaboration with affected public or private agencies and organizations, implementation plans and schedules and, where appropriate, assisting in the mobilization of resources to meet identified needs of the State;

     (8)  Collecting, integrating, analyzing, maintaining, and disseminating various forms of data and information, including geospatial data and information, to further effective state planning, policy analysis and development, and delivery of government services;

     (9)  Maintaining a centralized depository of state and national planning references;

    (10)  Developing and presenting the position of the State in all boundary change petitions and proceedings before the land use commission, assisting state agencies in the development and submittal of petitions for land use district boundary amendments, and conducting periodic reviews of the classification and districting of all lands in the State;

    (11)  Carrying out the lead agency responsibilities for the Hawaii coastal zone management program; developing and maintaining an ocean and coastal resources information, planning, and management system further developing and coordinating implementation of the ocean resources management plan, and formulating ocean policies with respect to the exclusive economic zone, coral reefs, and national marine sanctuaries; and

    (12)  Conducting plans and studies to determine:

         (A)  The capability of various regions within the State to support projected increases in both resident populations and visitors;

         (B)  The potential physical, social, economic, and environmental impact on these regions resulting from increases in both resident populations and visitors; and

         (C)  The maximum annual visitor carrying capacity for the State by region, county, and island.

     §   ‑I  State goals for planning.  In order to guarantee, for present and future generations, those elements of choice and mobility that ensure that individuals and groups may approach their desired levels of self-reliance and self-determination, it shall be the goal of the State to achieve:

     (1)  A strong, viable economy, characterized by stability, diversity, and growth, that enables the fulfillment of the needs and expectations of Hawaii's present and future generations;

     (2)  A desired physical environment, characterized by beauty, cleanliness, quiet, stable natural systems, and uniqueness, that enhances the mental and physical well-being of the people; and

     (3)  Physical, social, and economic well-being, for individuals and families in Hawaii, that nourishes a sense of community responsibility, of caring, and of participation in community life.

     §   ‑J  Objectives of state planning.  (a)  The policy areas of state planning shall include, but are not limited to:

     (1)  Population;

     (2)  Economy;

     (3)  Agriculture;

     (4)  Visitor industry;

     (5)  Information industry and high technology;

     (6)  Land-based, shoreline, and marine resources;

     (7)  Scenic, natural beauty, and historic resources;

     (8)  Land, air, and water quality;

     (9)  Facility systems, including solid and liquid waste, water, transportation, energy, and telecommunications; and

    (10)  Socio-cultural advancement including, but not limited to, housing, health, education, social services, individual rights and personal well-being, and culture.

     (b)  To facilitate the implementation of subsection (a), the agency shall establish a statewide planning system to coordinate and guide all major state and county activities and to implement the overall theme, goals, objectives, policies, and priority guidelines.

PART IV.  COASTAL ZONE MANAGEMENT

     §   ‑K  Coastal zone management; responsibilities.  The agency shall administer a coastal zone management program, as the comprehensive statement in words, maps, or other permanent media of communication, prepared, approved for submission, and amended by the State and approved by the United States government pursuant to Public Law No. 92-583, as amended, and the federal regulations adopted pursuant thereto, which describes objectives, policies, laws, standards, and procedures to guide and regulate public and private uses in the coastal zone management area, defined as all lands of the State and the area extending seaward from the shoreline to the limit of the State's police power and management authority, including the United States territorial sea; the coastal zone management program shall include the following responsibilities:

     (1)  Provide coastal recreational opportunities accessible to the public;

     (2)  Protect, preserve, and, where desirable, restore those natural and manmade historic and prehistoric resources in the coastal zone management area that are significant in Hawaiian and American history and culture;

     (3)  Protect, preserve, and, where desirable, restore or improve the quality of coastal scenic and open space resources;

     (4)  Protect valuable coastal ecosystems, including reefs, from disruption and minimize adverse impacts on all coastal ecosystems;

     (5)  Reduce hazard to life and property from tsunami, storm waves, stream flooding, erosion, subsidence, and pollution;

     (6)  Improve the development review process, communication, and public participation in the management of coastal resources and hazards;

     (7)  Stimulate public awareness, education, and participation in coastal management;

     (8)  Protect beaches for public use and recreation;

     (9)  Promote the protection, use, and development of marine and coastal resources to assure their sustainability;

    (10)  Improve coordination and funding of coastal recreational planning and management;

    (11)  Provide adequate, accessible, and diverse recreational opportunities in the coastal zone management area by:

         (A)  Protecting coastal resources uniquely suited for recreational activities that cannot be provided in other areas;

         (B)  Requiring replacement of coastal resources having significant recreational value including, but not limited to, surfing sites, fishponds, and sand beaches, when the resources will be unavoidably damaged by development; or requiring reasonable monetary compensation to the State for recreation when replacement is not feasible or desirable;

         (C)  Providing and managing adequate public access, consistent with conservation of natural resources, to and along shorelines with recreational value;

         (D)  Providing an adequate supply of shoreline parks and other recreational facilities suitable for public recreation;

         (E)  Ensuring public recreational uses of county, state, and federally owned or controlled shoreline lands and waters having recreational value consistent with public safety standards and conservation of natural resources; and

         (F)  Adopting water quality standards and regulating point and nonpoint sources of pollution to protect, and where feasible, restore the recreational value of coastal waters;

    (12)  Develop new shoreline recreational opportunities, where appropriate, such as artificial lagoons, artificial beaches, and artificial reefs for surfing and fishing;

    (13)  Encourage reasonable dedication of shoreline areas with recreational value for public use as part of discretionary approvals or permits by the land use commission, board of land and natural resources, and county authorities; and crediting the dedication against the requirements of section 46-6;

    (14)  Identify valued scenic resources in the coastal zone management area;

    (15)  Ensure that new developments are compatible with their visual environment by designing and locating the developments to minimize the alteration of natural landforms and existing public views to and along the shoreline;

    (16)  Preserve, maintain, and, where desirable, improve and restore shoreline open space and scenic resources;

    (17)  Encourage those developments that are not coastal dependent to locate in inland areas;

    (18)  Exercise an overall conservation ethic, and practicing stewardship in the protection, use, and development of marine and coastal resources;

    (19)  Preserve valuable coastal ecosystems, including reefs, of significant biological or economic importance;

    (20)  Minimize disruption or degradation of coastal water ecosystems by effective regulation of stream diversions, channelization, and similar land and water uses, recognizing competing water needs;

    (21)  Promote water quantity and quality planning and management practices that reflect the tolerance of fresh water and marine ecosystems and maintain and enhance water quality through the development and implementation of point and nonpoint source water pollution control measures;

    (22)  Concentrate coastal dependent development in appropriate areas;

    (23)  Ensure that coastal dependent development such as harbors and ports, and coastal related development such as visitor industry facilities and energy generating facilities, are located, designed, and constructed to minimize adverse social, visual, and environmental impacts in the coastal zone management area;

    (24)  Direct the location and expansion of coastal dependent developments to areas presently designated and used for the developments and promote reasonable long-term growth in those areas, and promote coastal dependent development outside of presently designated areas when:

         (A)  Use of presently designated locations is not feasible;

         (B)  Adverse environmental effects are minimized; and

         (C)  The development is important to the State's economy;

    (25)  Ensure that developments comply with requirements of the National Flood Insurance Program;

    (26)  Prevent coastal flooding from inland projects;

    (27)  Use, implement, and enforce existing law effectively to the maximum extent possible, in managing present and future coastal zone development;

    (28)  Locate new structures inland from the shoreline setback to conserve open space, minimize interference with natural shoreline processes, and minimize loss of improvements due to erosion;

    (29)  Prohibit construction of private erosion-protection structures seaward of the shoreline, except when they result in improved aesthetic and engineering solutions to erosion at the sites and do not interfere with existing recreational and waterline activities; and minimize the construction of public erosion-protection structures seaward of the shoreline;

    (30)  Ensure that the use and development of marine and coastal resources are ecologically and environmentally sound and economically beneficial;

    (31)  Coordinate the management of marine and coastal resources and activities to improve effectiveness and efficiency;

    (32)  Assert and articulate the interests of the State as a partner with federal agencies in the sound management of ocean resources within the United States exclusive economic zone; and

    (33)  Promote research, study, and understanding of ocean processes, marine life, and other ocean resources in order to acquire and inventory information necessary to understand how ocean development activities relate to and impact upon ocean and coastal resources; encourage research and development of new, innovative technologies for exploring, using, or protecting marine and coastal resources.

PART V.  COMMUNITY DEVELOPMENT

     §   ‑L  Hawaii community development.  (a)  The agency shall be responsible for long-range planning and implementation of improved community development programs.  The agency shall cooperate with private enterprise and the various components of federal, state, and county governments in bringing development plans to fruition in community development districts.

     (b)  The Kakaako community development district is established.  The district shall include that area bounded by King Street; Piikoi Street from its intersection with King Street to Ala Moana Boulevard; Ala Moana Boulevard, inclusive, from Piikoi Street to its intersection with the Ewa boundary of Ala Moana Park also identified as the Ewa boundary of tax map key 2-3-37:01; the Ewa boundary of tax map key 2-3-37:01 from its intersection with Ala Moana Boulevard to the shoreline; the shoreline from its intersection with the property line representing the Ewa boundary of property identified by tax map key 2-3-37:01 to the property line between Pier 2 and Pier 4; the property line between Pier 2 and Pier 4 from its intersection with the shoreline to Ala Moana Boulevard; Ala Moana Boulevard from its intersection with the property line between lands identified by Pier 2 and Pier 4 to Punchbowl Street; and Punchbowl Street to its intersection with King Street; provided that the following parcels at Pier 1 and Pier 2 shall be deleted from the Kakaako community development district boundaries and conveyed to the department of land and natural resources to be set aside for the department of transportation and the foreign-trade zone division of the department of business, economic development, and tourism, to ensure continued maritime and foreign commerce use:  all of lot 3 and parcels 2, 3-A, A, and B of the Forrest Avenue subdivision, as shown on the map filed with the bureau of conveyances of the State of Hawaii as file plan 2335; and lots A-1 and A-2, as shown on map 2, filed in the office of the assistant registrar of the land court of the State of Hawaii with land court application 1328; and provided further that all existing easements affecting and appurtenant to the parcels to be deleted from the Kakaako community development district boundaries shall not be affected by this change.

     The district shall also include that parcel of land identified by tax map key 2-1-14:16, situated mauka of Pier 6 and Pier 7 and makai of Nimitz Highway, being the site for the existing Hawaiian Electric power plant and related facilities.

     (c)  The Kalaeloa community development district is established.  The district shall include that area within the boundaries described as follows:  the eastern boundary begins at Geiger Gate and runs along East Hansen Road to the intersection with Essex Road until its termination at White Plains Beach Park, where it follows the eastern boundary of parcel 9-1-13:74 to the shoreline at the mean high water mark; the northern boundary begins at the eastern corner at the Geiger Road entry gate where it becomes Roosevelt Road and continues westward until its intersection with West Perimeter Road; the western boundary follows the West Perimeter Road until its termination and then follows the western border of parcel 9-1-13:30 to the shoreline at the mean high water mark; two parcels (9-1-13:01 and 9-1-13:09) lying west of West Perimeter Road toward its mauka end, and two parcels (9‑1‑31:28 and 9-1-31:47) lying west of West Perimeter Road on its makai end, all of which are physically separated from the western boundary by a storm water drainage canal, are also included; the southern boundary follows the shoreline at the mean high water mark from the western boundary of parcel 9‑1‑13:30 to the eastern boundary of White Plains Beach Park (9‑1‑13:74).  All references to parcel numbers contained herein indicate the areas identified by such tax map key numbers as of March 18, 2002.

     (d)  The agency shall have jurisdiction within each community development district over projects, including residential projects, redevelopment projects, and commercial projects.  For purposes of this subsection:

     "Commercial project" means an undertaking involving commercial or light industrial development, which includes a mixed use development where commercial or light industrial facilities may be built into, adjacent to, under, or above residential units.

     "Community development district" means the Kakaako community development district and Kalaeloa community development district.

     "Project" means a specific work or improvement, including real and personal properties, or any interest therein, acquired, owned, constructed, reconstructed, rehabilitated, or improved by the agency, including a residential project, a redevelopment project, or a commercial project, all as defined herein, or any combination thereof, which combination shall hereinafter be called and known as a multipurpose project.

     "Redevelopment project" means an undertaking for the acquisition, clearance, replanning, reconstruction, and rehabilitation or a combination of these and other methods, of an area for a residential project, for an incidental commercial project, and for other facilities incidental or appurtenant thereto, pursuant to and in accordance with this chapter.  The terms "acquisition, clearance, replanning, reconstruction, and rehabilitation" shall include renewal, redevelopment, conservation, restoration, or improvement, or any combination thereof.

     "Residential project" means a project or that portion of a multipurpose project, including residential dwelling units, designed and intended for the purpose of providing housing and facilities as may be incidental or appurtenant thereto.

     (e)  The agency shall be responsible for project cost, public facilities, and real property.  As used in this subsection:

     "Project cost" means the total of all costs incurred by the agency in carrying out all undertakings which it deems reasonable and necessary for the development of a project including but not limited to:  studies; surveys; plans; specifications; architectural, engineering, or any other development related services; acquisition of land and any improvement thereon; site preparation and development; construction; reconstruction; rehabilitation; the necessary expenses in administering the chapter; the cost of financing the project; and relocation costs.

     "Public facilities" includes streets, utility and service corridors, and utility lines where applicable, sufficient to adequately service developable improvements in the district, sites for schools, parks, parking garage, sidewalks, pedestrian ways, and other community facilities.  "Public facilities" shall also include public highways, as defined by statute, storm drainage systems, water systems, street lighting systems, off-street parking facilities, and sanitary sewerage systems.

     "Real property" means lands, structures, and interests in land, including lands under water and riparian rights, space rights, and air rights and any and all other things and rights usually included within the term.  Real property also means any and all interests in the property of less than full title, such as easements, incorporeal hereditaments and every estate, interest, or right, legal or equitable, including terms for years and liens thereon by way of judgments, mortgages, or otherwise.

     §   ‑M  Hawaii community development; agency powers.  (a)  With respect to Hawaii community development duties, the agency may:

     (1)  Sue and be sued;

     (2)  Have a seal and alter the same at pleasure;

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

     (4)  Make and alter bylaws for its organization and internal management;

     (5)  Make rules with respect to its projects, operations, properties, and facilities, which rules shall be in conformance with chapter 91;

     (6)  Appoint officers, agents, and employees, prescribe their duties and qualifications, and fix their salaries, without regard to chapter 76;

     (7)  Prepare or cause to be prepared a community development plan for all designated community development districts;

     (8)  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)  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)  By itself, or in partnership with qualified persons, acquire, reacquire, construct, reconstruct, rehabilitate, improve, alter, or repair or provide for the construction, reconstruction, improvement, alteration, or repair of any project; 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 which the agency has theretofore sold or otherwise conveyed, transferred, or disposed of;

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

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

    (13)  Prepare or cause to be prepared plans, specifications, designs, and estimates of costs 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)  Provide advisory, consultative, training, and educational services, technical assistance, and advice to any person, partnership, or corporation, 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;

    (15)  Procure insurance against any loss in connection with its property and other assets and operations in amounts and from insurers as it deems desirable;

    (16)  Contract for and accept gifts or grants in any form from any public agency or from any other source;

    (17)  Do any and all things necessary to carry out its purposes and exercise the powers given and granted in this chapter, including but not limited to, issuance of bonds to finance public facilities; and

    (18)  Allow satisfaction of any affordable housing requirements imposed by the agency upon any proposed development project through the construction of reserved housing by a person on land located outside the geographic boundaries of the agency's jurisdiction.  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 agency shall establish the following priority in the development of reserved housing:

         (A)  Within the community development district;

         (B)  Within areas immediately surrounding the community development district;

         (C)  Areas within the central urban core;

         (D)  In outlying areas within the same island as the development project.

     For purposes of this section, "reserved housing" means housing designated for residents in the low- or moderate-income ranges who meet eligibility requirements as the agency may adopt by rule.

     (b)  The agency shall adopt rules relating to the approval of reserved housing that is developed outside of a community development district.  The rules shall include, but are not limited to, the establishment of guidelines to ensure compliance with the above priorities.

     §   ‑N  District-wide improvement program.  (a)  The agency shall develop a district-wide improvement program to identify necessary district-wide public facilities within a community development district.

     (b)  Whenever the agency undertakes, or causes to be undertaken, any public facility as part of the district-wide improvement program, the cost of providing the public facilities shall be assessed against the real property in the community development district specially benefiting from the public facilities.  The agency shall determine the areas of the community development district that will benefit from the public facilities to be undertaken and, if less than the entire community development district benefits, the agency may establish assessment areas within the community development district.  The agency may issue and sell bonds in amounts as may be authorized by the legislature to provide funds to finance public facilities.  The agency shall fix the assessments against real property specially benefited.  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 benefited 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 agency.  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 the provisions of the rules adopted by the agency.

     (d)  Any other law to the contrary notwithstanding, in assessing real property for public facilities, the agency 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 specially benefited as provided by this part shall constitute a tax on real property within the meanings of any constitutional or statutory provisions.

     (e)  The agency shall adopt rules pursuant to chapter 91, and may amend the rules from time to time, providing for the method of undertaking and financing public facilities in an assessment area or an entire community development district.  The rules adopted pursuant to this section shall include, but are not limited to, the following:  methods by which the agency shall establish assessment areas; the method of assessment of real properties specially benefited; the costs to be borne by the agency, the county in which the public facilities are situated, and the property owners; the procedures before the agency relating to the creation of the assessment areas by the owners of real property therein, including provisions for petitions, bids, contracts, bonds, and notices; provisions relating to assessments; 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; provisions relating to funds and refunding of outstanding debts; and provisions relating to limitations on time to sue, and other related provisions.

     (f)  Any provisions to the contrary notwithstanding, the agency, in its discretion, may enter into any agreement with the county in which the public facilities are located, to implement all or part of the purposes of this section.

     (g)  All sums collected under this section shall be deposited in the Hawaii community development revolving fund; provided that 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 fund 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 fund after the payment of the bonds chargeable against the fund, it shall be credited to and become a part of the Hawaii community development revolving fund.  Moneys in the Hawaii community development revolving fund may be used to make up any deficiencies in the special fund.

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

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

     §   ‑O  Hawaii community development revolving fund.  There is created the Hawaii community development revolving fund into which all receipts and revenues of the agency shall be deposited.  Proceeds from the fund shall be used for the purposes of this chapter.

     §   ‑P  Kalaeloa community development revolving fund.  (a)  There is established in the state treasury the Kalaeloa community development revolving fund, into which shall be deposited:

     (1)  All revenues, income, and receipts of the agency for the Kalaeloa community development district, notwithstanding any other law to the contrary;

     (2)  Moneys directed, allocated, or disbursed to the Kalaeloa community development district from government agencies or private individuals or organizations, including grants, gifts, awards, donations, and assessments of landowners for costs to administer and operate the Kalaeloa community development district; and

     (3)  Moneys appropriated to the fund by the legislature.

     (b)  Moneys in the Kalaeloa community development revolving fund shall be expended by the agency for purposes of the Kalaeloa community development district.

     (c)  Investment earnings credited to the assets of the fund shall become part of the assets of the fund.

     §   ‑Q  Expenditures of revolving funds under the agency exempt from appropriation and allotment.  Except as to administrative expenditures, and except as otherwise provided by law, expenditures from any revolving fund administered by the agency may be made by the agency without appropriation or allotment of the legislature; provided that no expenditure shall be made from and no obligation shall be incurred against any revolving fund in excess of the amount standing to the credit of the fund or for any purpose for which the fund may not lawfully be expended.  Nothing in sections 37-31 to 37-41 shall require the proceeds of any revolving fund administered by the agency be reappropriated annually.

     §   ‑R  Exemption from taxation.  The agency shall not be required to pay assessments levied by any county, nor shall the agency be required to pay state taxes of any kind.

     §   ‑S  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 the Hawaii community development responsibilities of the agency.

     §   ‑T  Assessment for operating costs.  (a)  The agency shall have the power to assess all land users, except the federal government, for their fair share of the costs required to administer and operate a particular community development district assessed, which may include costs associated with staffing.  Assessments shall be based on each landowner's proportionate share of the total acreage of the particular community development district assessed.

     (b)  The assessment shall be set by the agency annually, based upon the operating budget for the district, and adjusted for any actual expenditures made in the prior year in excess of the prior approved budget.  The assessments shall be paid to the agency in semiannual payments commencing thirty days after the beginning of the fiscal year.

     (c)  The agency may charge interest or other fees on assessment amounts not paid on a timely basis, and may withhold services or approval of governmental permits for land users delinquent in payments.

     (d)  For the purposes of this section, "land user" includes the owner of land; provided that the landowner may assign the responsibility for payment of assessments to the lessee or licensee of the land.

     §   ‑U  Designation of community development districts; community development plans.  (a)  The legislature, by statute, may designate an area as a community development district if it determines that there is need for replanning, renewal, or redevelopment of that area.  The designation shall describe the boundaries of the district.

     (b)  After designation, the agency shall develop a community development plan for the designated district.  The plan shall include but not be limited to community development guidance policies, district-wide improvement programs, and community development rules.

     (c)  The agency may enter into cooperative agreements with qualified persons or public agencies, where the powers, services, and capabilities of the persons or agencies are deemed necessary and appropriate for the development of the community development plan.

     (d)  Whenever possible, planning activities of the agency shall be coordinated with federal, state, and county plans.  Consideration shall be given to state goals and policies, adopted state plan or land use guidance policies, county general plans, development plans, and ordinances.

     (e)  The agency shall hold a public hearing on a proposed community development plan pursuant to chapter 91 and, after consideration of comments received and appropriate revision, shall submit the community development plan to the governor for the governor's approval.

     After approval, the governor shall submit to the legislature requests for appropriations, authorization to issue bonds, or both, to implement the community development plan in an orderly, affordable, and feasible manner.  The governor shall submit the requests to the legislature as part of the executive budget or supplemental budget, as appropriate.  In addition to the information, data, and materials required under chapter 37, the requests shall be accompanied by:

     (1)  Plans, maps, narrative descriptions, and other appropriate materials on the:

         (A)  Locations and design of projects or public facilities proposed to be funded; and

         (B)  Phase of the community development plans proposed to be implemented with the requested funds; and

     (2)  Other information deemed by the governor of significance to the legislature regarding the projects or public facilities proposed to be funded, including a discussion of the public benefits intended by, and adverse effects which may result from, implementation of the projects or public facilities.

     (f)  The agency may amend the community development plan as may be necessary.  Amendments shall be made in accordance with chapter 91.

     §   ‑V  District-wide improvement program.  (a)  The agency shall develop a district-wide improvement program to identify necessary district-wide public facilities within a community development district.

     (b)  Whenever the agency shall determine to undertake, or cause to be undertaken, any public facility as part of the district-wide improvement program, the cost of providing the public facilities shall be assessed against the real property in the community development district specially benefiting from the public facilities.  The agency shall determine the areas of the community development district that will benefit from the public facilities to be undertaken and, if less than the entire community development district benefits, the agency may establish assessment areas within the community development district.  The agency may issue and sell bonds in amounts as may be authorized by the legislature to provide funds to finance public facilities.  The agency shall fix the assessments against real property specially benefited.  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 benefited 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 agency.  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 rules adopted pursuant to this section.

     (d)  Any other law to the contrary notwithstanding, in assessing real property for public facilities, the agency 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 specially benefited as provided by this part shall constitute a tax on real property within the meanings of any constitutional or statutory provisions.

     (e)  The agency shall adopt rules pursuant to chapter 91, and may amend the rules from time to time, providing for the method of undertaking and financing public facilities in an assessment area or an entire community development district.  The rules adopted pursuant to this section shall include, but are not limited to, the following:  methods by which the agency shall establish assessment areas; the method of assessment of real properties specially benefited; the costs to be borne by the agency, the county in which the public facilities are situated, and the property owners; the procedures before the agency relating to the creation of the assessment areas by the owners of real property therein, including provisions for petitions, bids, contracts, bonds, and notices; provisions relating to assessments; 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; provisions relating to funds and refunding of outstanding debts; and provisions relating to limitations on time to sue, and other related provisions.

     (f)  Any provisions to the contrary notwithstanding, the agency may enter into any agreement with the county in which the public facilities are located, to implement all or part of the purposes of this section.

     (g)  All sums collected under this section shall be deposited in the Hawaii community development revolving fund or the Kalaeloa community development revolving fund, as applicable; except that 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 fund 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 fund after the payment of the bonds chargeable against the fund, it shall be credited to and become a part of the Hawaii community development revolving fund or the Kalaeloa community development revolving fund, as applicable.  Moneys in the Hawaii community development revolving fund or Kalaeloa community development revolving fund may be used to make up any deficiencies in the special fund.

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

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

     §   ‑W   Use of public lands; acquisition of state lands.  (a)  Any provision of chapter 171 to the contrary notwithstanding, the governor may set aside public lands located within community development districts to the agency for its use.

     (b)  If state lands under the control and management of other public agencies are required by the agency for its purposes, the agency having the control and management of those required lands shall, upon request by the agency and with the approval of the governor, convey, or lease the lands to the agency upon terms and conditions as may be agreed to by the parties.

     (c)  Notwithstanding the foregoing, no public lands shall be set aside, conveyed, or leased to the agency as above provided if the setting aside, 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 county department or board.

     §   ‑X  Developments within special management areas and shoreline setback.  (a)  Notwithstanding part IV, all requests for developments within a special management area and shoreline setback variances for developments on any lands within a community development district, for which a community development plan has been developed and approved in accordance with this part, shall be submitted to and reviewed by the agency.  Community development districts for which a community development plan has not been developed and approved in accordance with section    ‑T or part IV shall continue to be administered by the applicable county agency until a community development plan for the district takes effect.

     (b)  In the review of the requests, the agency shall conform to applicable county rules relating to the review of developments within a special management area and shoreline setback.

     (c)  With the approval of the agency, the developments may be allowed without a special management area permit or shoreline setback variance as required by chapter 205A.

     §   ‑Y  Acquisition of real property from a county.  Notwithstanding the provision of any law or charter, any county, by resolution of its local governing body, may, without public auction, sealed bids, or public notice, sell, lease for a term not exceeding sixty-five years, grant or convey to the agency any real property owned by it which the agency certifies to be necessary for its purposes.  The sale, lease, grant, or conveyance shall be made with or without consideration and upon terms and conditions as may be agreed upon by the county and the agency.  Certification shall be evidenced by a formal request from the agency.  Before the sale, lease, grant, or conveyance may be made to the agency, a public hearing shall be held by the local governing body to consider the same.  Notice of the hearing shall be published at least ten days before the date set for the hearing in the publication and in a manner as may be designated by the local governing body.

     §   ‑Z  Condemnation of real property.  The agency upon making a finding that it is necessary to acquire any real property for its immediate or future use for the purposes of this chapter, may acquire the property by condemnation pursuant to chapter 101, including property already devoted to a public use.  The property shall not thereafter be taken for any other public use without the consent of the agency.  No award of compensation shall be increased by reason of any increase in the value of real property caused by the designation of a community development district or plan adopted pursuant to a designation, or the actual or proposed acquisition, use or disposition of any other real property by the agency.

     §   ‑AA  Relocation.  (a)  Any provision of law to the contrary notwithstanding, the agency shall adopt rules pursuant to chapter 91 to ensure the appropriate relocation within or outside the district of persons, families, and businesses displaced by governmental action within the district.  The rules may include, but are not limited to, the establishment and operation of a central relocation office; relocation payments for actual moving costs; fixed payments for losses suffered; payments for replacement housing or business locations; relocation payments and loans to displaced businesses for certain costs related to the re-establishment of their business operations; and other similar relocation matters.

     (b)  The agency shall provide relocation assistance to persons, families, and businesses within the district that are displaced by private action; provided that the assistance shall not include any form of direct monetary payments except that the agency may make relocation loans to displaced businesses in accordance with rules adopted by the agency for the purposes of this section.  Temporary relocation facilities within or outside the district may be made available to displacees; provided that those displaced by government action shall be afforded priority to the facilities.

     §   ‑BB  Dedication for public facilities as condition to development.  The agency shall establish rules requiring dedication for public facilities of land or facilities, or cash payments in lieu thereof, by developers as a condition of developing real property pursuant to the community development plan.  Where state and county public facilities dedication laws, ordinances, or rules differ, the provision for greater dedication shall prevail.

     §   ‑CC  Public projects.  Any project or activity of any county or agency of the State in a designated district shall be constructed, renovated, or improved in consultation with the agency.

     §   ‑DD  Sale or lease of redevelopment projects.  (a)  The agency, without recourse to public auction, may sell, or lease for a term not exceeding sixty-five 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 agency, if the agency finds that the sale or lease is in conformity with the community development plan.

     (b)  In the case of residential projects or redevelopment projects, the terms of the sale shall provide for the repurchase of the property by the agency 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 agency if the agency determines that a waiver will not be contrary to the community development plan.  The agency shall establish at the time of original sale a formula setting forth a basis for a repurchase price based on market considerations including but not limited to interest rates, land values, construction costs, and federal tax laws.

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

     §   ‑EE  Residential projects; cooperative agreements.  (a)  If the agency 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 agency.  The agency 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 projects.

     (b)  The agency may transfer the housing fees collected from private residential developments for the provision of housing for residents of low- or moderate-income to the Hawaii housing finance and development corporation for the financing, development, construction, sale, lease, or rental of housing within or without the community 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, which organization has received charitable status under the Internal Revenue Code of 1986, as amended.

PART VI.  RESERVED HOUSING LOAN PROGRAMS

     §   ‑FF   Reserved housing loan programs; eligible loans; bonds.  (a)  The agency shall establish requirements for reserved housing units financed by an eligible loan, and may consider, but not be limited to the location, age, condition, and other characteristics of the reserved housing units.

     (b)  The agency shall establish restrictions on the terms, maturities, interest rates, collateral, and other requirements for eligible loans.

     (c)  All eligible loans made shall comply with applicable state and federal laws.

     (d)  The agency, with the approval of the governor, may issue from time to time revenue bonds in amounts not exceeding the total amount of bonds authorized by the legislature for the purpose of undertaking and maintaining any of the reserved housing loan programs.

     (e)  All revenue bonds shall be issued pursuant to part III of chapter 39.

     (f)  The revenue bonds shall be issued in the name of the agency, and not in the name of the State.  The final maturity date of the revenue bonds may be any date not exceeding forty years from the date of issuance.

     (g)  The revenue bonds shall be payable from and secured by the revenues derived from the benefits of the reserved housing loan programs for which the revenue bonds are issued, including:

     (1)  Any payment made for eligible loans or eligible project loans or other agreements entered into for the reserved housing loan programs;

     (2)  Revenues derived from insurance proceeds;

     (3)  Reserve accounts and earnings thereon; and

     (4)  Revenues resulting from loans to mortgage lenders or from the payment on account of principal of and interest on loans purchased from mortgage lenders.

     (h)  The agency may pledge any revenue derived from the reserved housing loan programs financed from the proceeds of the revenue bonds to the punctual payment of the principal, interest, and redemption premiums, if any, on the revenue bonds.

     (i)  The revenue bonds may be additionally secured by the pledge or assignment of the loans and other agreements or any note or other undertaking, obligation, or property held by the agency to secure the loans.

     (j)  Any pledge made by the agency shall create a perfected security interest in the revenues, moneys, or property so pledged and thereafter received by the agency from and after the time that a financing statement with respect to the revenues, moneys, or property so pledged and thereafter received shall be filed with the bureau of conveyances.  Upon the filing, the revenues, moneys, or property so pledged and thereafter received by the agency shall immediately be subject to the lien of the pledge without any physical delivery thereof or further act, and the lien of any pledge shall be prior to the lien of all parties having claims of any kind in tort, contract, or otherwise against the agency, irrespective of whether the parties have notice thereof.

     (k)  The revenue bonds shall bear interest at a rate or rates payable monthly, quarterly, or semi-annually.  The agency shall include the costs of undertaking and maintaining the reserved housing loan programs for which the revenue bonds are issued in determining the cost of undertaking and maintaining the reserved housing loan programs, the agency may include the cost of purchasing or funding loans or other agreements entered into for the reserved housing loan programs; the costs of studies and surveys; insurance premiums; underwriting fees; financial consultant, legal, accounting, and marketing services incurred; reserve account, trustee, custodian, and rating agency fees; and interest on the bonds for a period not to exceed one year from the date of issuance.  The revenue bonds may be sold at public or private sale, and for a price as may be determined by the agency to be in the best interest of the State.

     Section 39-65 shall not apply to revenue bonds issued for the purpose of undertaking and maintaining any of the reserved housing loan programs.  The legislature consents to the taxation by the United States of interest on revenue bonds issued for the purpose of undertaking and maintaining any of the reserved housing loan programs.

     (l)  Subject to any agreement with the holders of its revenue bonds, the agency may:

     (1)  Notwithstanding any other law to the contrary, invest its moneys not required for immediate use, including proceeds from the sale of any revenue bonds, in any investment in accordance with procedures prescribed in a trust indenture; and

     (2)  Purchase its revenue bonds out of any fund or money of the agency available therefor, and hold, cancel, or resell the revenue bonds.

     (m)  The agency shall designate a trustee for each issue of revenue bonds secured under the same trust indenture; provided that the trustee shall be approved by the director of finance.    The trustee shall be authorized by the agency to receive and receipt for, hold, and administer the proceeds of the revenue bonds, and to apply the proceeds to the purposes for which the bonds are issued.  The trustee shall also be authorized by the agency to receive and receipt for, hold, and administer the revenues derived by the agency from the benefits of the reserved housing loan program for which the revenue bonds are issued and to apply these revenues to the payment of the cost of administering, operating, and maintaining the reserved housing loan programs, to pay the principal of and interest on these bonds, to the establishment of reserves, and to other purposes as may be authorized in the proceedings providing for the issuance of the revenue bonds.

     Notwithstanding section 39-68, the director of finance may appoint the trustee to serve as fiscal agent for:

     (1)  The payment of the principal of and interest on the revenue bonds; and

     (2)  The purchase, registration, transfer, exchange, and redemption of the bonds.

     The trustee shall perform additional functions with respect to the payment, purchase, registration, transfer, exchange, and redemption, as the director of finance may deem necessary, advisable, or expeditious, including the holding of the revenue bonds and coupons which have been paid and the supervision of the destruction thereof in accordance with law.

     No provision of law shall limit or be construed to limit the powers granted to the director of finance in sections 36-3 and 39-13, and the third sentence of section 39-68, to appoint the trustee or others as fiscal agents, paying agents and registrars for the revenue bonds, or to authorize and empower those fiscal agents and registrars to perform the functions referred to in those sections.

     §   ‑GG  Trust indenture.  (a)  A trust indenture may contain covenants and provisions authorized by part III of chapter 39, and as deemed necessary or convenient by the agency.

     (b)  A trust indenture may allow the agency to pledge and assign to the trustee loans and other agreements related to the reserved housing loan programs, and the rights of the agency thereunder, including the right to receive revenues thereunder and to enforce the provision thereof.

     (c)  Where a trust indenture provides that any revenue bond issued under that trust indenture is not valid or obligatory for any purpose unless certified or authenticated by the trustee, all signatures of the officers of the State upon the revenue bonds required by section 39-56 may be facsimiles of their signatures.

     (d)  A trust indenture shall also contain provisions as to:

     (1)  The investment of the proceeds of the revenue bonds, the investment of any reserve for the bonds, the investment of the revenues of the reserved housing loan programs, and the use and application of the earnings from investments; and

     (2)  The terms and conditions upon which the holders of the revenue bonds or any portion of them or any trustee thereof may institute proceedings for the foreclosure of any loan or other agreement or any note or other undertaking, obligation or property securing the payment of the bonds, and the use and application of the moneys derived from the foreclosure.

     (e)  A trust indenture may also contain provisions deemed necessary or desirable by the agency to obtain or permit, by grant, interest subsidy, or otherwise, the participation of the federal government in the reserved housing loan programs or in the financing of the costs of administering, operating, or maintaining the reserved housing loan programs.

     §   ‑HH  Reserved housing loan programs; self supporting.  The interest rate, fees, charges, premiums, and other terms of the loans made under the reserved housing loan programs shall be at least sufficient to pay the cost of administering and maintaining the portion of the specific reserved housing loan programs for which the revenue bonds have been issued, and to assure payment of the principal of and interest on the revenue bonds as they become due.

     §   ‑II  Reserved housing loan programs; fees.  The agency may establish, revise, charge, and collect fees, premiums, and charges as necessary, reasonable, or convenient, for its reserved housing loan programs.

     The fees, premiums, and charges shall be deposited into the reserved housing loan program revenue bond special fund established for the particular reserved housing loan program or part thereof from which the fees, premiums and charges are derived as determined by the agency.

     §   ‑JJ  Revenue bonds for public facility projects.  (a)  The agency with the approval of the governor, may issue from time to time revenue bonds in amounts not exceeding the total amount of bonds authorized to be issued by the legislature for the purpose of constructing, acquiring, remodeling, furnishing, and equipping any public facility, including acquisition of the site thereof.

     (b)  All revenue bonds shall be issued pursuant to part III of chapter 39, except as provided in this part.

     (c)  The revenue bonds under this part are declared to be issued for a public purpose and, together with interest thereon, shall be exempt from all state and county taxation except estate and transfer taxes.  The legislature consents to federal income taxation of interest on revenue bonds issued under this part, if it is determined by the agency that the issuance is in the best interest of the State.

     (d)  The revenue bonds shall be issued in the name of the agency and not in the name of the State.  The final maturity date of the revenue bonds may be any date not exceeding thirty years from the date of issuance."

PART II

     SECTION 2.  All rights, powers, functions, and duties of the Aloha Tower development corporation, office of planning, coastal zone management program under chapter 205A, Hawaii Revised Statutes, and the Hawaii community development authority are transferred to the state resources protection and development agency.

     All officers and employees whose functions are transferred by this Act 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 Act.

     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 Act, and the 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 Act 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 the 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 3.  All appropriations, records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by the Aloha Tower development corporation, office of planning, coastal zone management program under chapter 205A, Hawaii Revised Statutes, and the Hawaii community development authority shall be transferred with the functions to which they relate.

     SECTION 4.  (a)  The balance remaining in the Hawaii community development revolving fund under section 206E-16, Hawaii Revised Statutes, and the Kalaeloa community development revoking fund under section 206E-195, Hawaii Revised Statutes, as of the effective date of this Act shall be transferred into separate accounts of the state resources protection and development revolving fund created under section 1 of this Act.

     (b)  The balance remaining in the Aloha Tower fund under section 206J-17, Hawaii Revised Statutes, shall be transferred to the state resources the Aloha Tower fund created under section 1 of this Act.

     SECTION 5.  In codifying this Act, the revisor shall substitute appropriate section numbers for the letter references used in section 1 of this Act.

     SECTION 6.  This Act shall take effect on July 1, 2050.