S.B. NO.



















SECTION 1. Chapter 261, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:

"261- Fines levied by federal, state, or county agencies; reimbursement. Notwithstanding any other law to the contrary, any commercial airport tenant or user, including airport contractor, who violates federal, state, or county law or rule relating to environmental protection or the United States Department of Homeland Security, to include but not limited to the United States Coast Guard, the United States Customs and Border Protection, and Transportation Security Administration, and thereby causes a fine to be levied by an agency, shall reimburse the department for the entire amount of the fine. The department may demand, collect, and deposit any amount reimbursable under this section into the airport revenue fund created by section 248-8 and may also demand, collect, and deposit reimbursement for costs or expenses incurred by the department to enforce this section.

261- Private financing of airport improvements. (a) Notwithstanding any law to the contrary, the department may enter into a capital advancement contract with a private party for any public improvement to or construction of airports belonging to or controlled by the State, if the director determines that a capital advancement contract promotes the best interest of the State by finding that:

(1) Private development is likely to be less costly than any type of contract;

(2) Private development provides needed public improvements or constructions on a significantly more timely basis; or

(3) Public financing for the public improvements or constructions is not available on a timely basis.

(b) A capital advancement contract under subsection (a) may be financed by legislative appropriation to reimburse the private party or by credit against the private party's future rental or tariff payments to the State; provided that the terms of the contract shall ensure that the State benefits financially from the arrangement and that public use of the facility is maintained; provided further that capital advancement contracts under this section shall not be general obligations of the State for which the full faith and credit of the department is pledged and the legislature shall have no obligation to appropriate funds to reimburse a private party to a capital advancement contract.

(c) A capital advancement contract under subsection (a) shall be subject to the requirements of chapters 103 and 103D and be subject to the approval of the department, provided that all related transactions shall be subject to state audit.

(d) The department may execute capital advancement contracts pursuant to subsection (a) with a total contract value of $5,000,000 or less without legislative approval. If the total contract value of a capital advancement contract pursuant to subsection (a) is greater than $5,000,000, the department shall obtain legislative approval in the form of the adoption of a concurrent resolution affirming the purpose, project, and contract issuance prior to executing the capital advancement contract. The total aggregate value of all capital advancement contracts entered into by the department pursuant to this section shall not exceed $50,000,000 in any calendar year.

(e) For the purposes of this section:

"Capital advancement contract" means an agreement between the department and a private party whereby the private party agrees to furnish capital, labor, or materials for a public improvement to or construction of airports belonging to or controlled by the State and in return for which the private party may be reimbursed in a manner to be determined by the department.

"Total contract value" includes any contract extension, project redesign, add-ons, or any other occurrence, act, or material cost that may increase the cost of the contracted project."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval.









Report Title:

Department of Transportation; Airports; Reimbursement for Fines Levied; Private Financing of Airport Improvements or Constructions



Allows the Department of Transportation Airports Division (DOTA) to be reimbursed from any airport contractor, tenant, or user for the entire amount of fines and penalties levied for the violation of federal, state, or county laws related to environmental protection or the United States Department of Homeland Security. Allows the DOTA to enter into a capital advancement contract with a private party for certain public improvement or construction projects at Hawaii's airports.




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