HomeMy WebLinkAboutSB 3115 THE SENATE 0*"" 3115
THIRTIETH LEGISLATURE, 2020 ti . B . O .
STATE OF HAWAII
A BILL. F AN ACT
RELATING TO PUBLIC LANDS .
BE 11" ENAC1'ED BY '1'11E 1:.,E('x15t�A'1'tJRE OFTU1,1E S"I'NFE OF 11AAVA11:
PART J
SECTION 1 . The legislature finds that because of the policies guiding
the managemeM of public lands with commercial, industrial , resort , and
hoLel uses, there has been .:L. incentive for lessees to make major
improverneMs to their infrastructure, resulting in the deterioration of
infrastructure and facilities . The lack of improvements in many of these
areas has resulted in dilapidation, deterioration, or obsolescence of
buildings and strumures .
The department of land and natural resources has the responsibility of
planning for the disposition of commercial , industrial , and hotel and
YesoiL classes of public Jands to Mermine specific uses, the minimurri
sizes of parcels, required buildlnq uonsLrucLion or improvements, and lease
terms and requirements .
The legislature finds that, the rejuvenation of public lands that have
become dilapidated, obsolete, or have deteriorated ovor time is in the
public inLeresL and constitutes a valid publ- kc purpose.
The purpose of this Act is to authorize the designation of areas or:
regions of public lands classified as commercial and industrial use; hoLel,
apartment, and motel use; or resort use and the osLablishment and
implementation of guidelines for the redevelopment of the areas or regions
that will :
(1) Modernize pWides Or die inanagernent ofpUbhc lands in the designatedarea;
(2) 1'.",,stablish a plan f(.)r the designated area, including district-wide improvements, that is coordimated with
state and county land ase and planning policics; and
('3) Implement asset and I)rol)erty management concepts tat can optii-nine: income from the properties and
evolve in response to changing principles ofproperty administration.
PART Ll:
SECTION 2 . Chapter 171, Hawaii Revised Statutes, is amended by adding
a new part to be appropriately designated and to read as follows :
"PART . PUBLIC LANDS REDEVELOPMENT
§171-A Definitions . As used in this part, unless the context
requires otherwise :
"Planning committee" or "committee" means the policy-making committee
established for a redevelopment district pursuant to section 171-C .
"Premises" means the property that is being leased ot rented in a
designated district .
"Public facilities" include streets and highways, stoxm drainage
systems, water systems, street lighting systems, off-street parking
facilities, and sanitary sewerage systems .
"Redevelopment district" or "designated district " means an area of
public lands designated for redevelopment pursuant to section 171-B .
§171-B Designation of redevelopment district; boundaries; transfer to
the committee. (a) ThH leg islaLure shall designate redevelopment
districts by law for any area of public lands classified as commercial and
industrial; hotel, apartment , and motel; or resort use pursuant to section
171- LO, if the legislature deteimines that there is a need for planning,
development, or redevelopment because the buildings and infrastructures in
the area are dilapidated or have deteriorated due to age or obsolescence .
(h) The designation shall specify the boundaries of the redevelopment
district .
(c) The law designating the redevelopment district shall transfer th(
management of the public lands within the district to the planning
committee for the designated district ; provided that any lessee or
permittee within the designated district shall perform in full compliance
with the existing lease or. permit .
(d) All rules, policies, procedures, guidelines, leases, contracts,
loans, agreements, permits, and other materials and documents adopted or
developed by the department of land and natural resources to implement
applicable state laws shall remain in full force and effect until amended
or repealed by the committee .
§171-C Planning committee; medbers ; district administrator; repeal .
(a) Upon the designation of a redevelopment district pursuant to sectiorl
171-B, as planning committee for the designated district shall he
established within the department for administrative purposes .
(b) The committee shall he an executive committee fox the designated
district and shall consist of nine voting members . The connittee shall
consist of :
(1) The chairperson of the board of Wnd aml natural resources and the director of planning ofthe county ill
which the designalcd dist6ct is lowed, or their deMppurted representatives, who shall be ex officio inernbers; and
(2) Seven rnsubers of the public appointed by the governorpril-suant to section 2604; pmvWeddmt orsc
mernbels appainted pumumu lo CIA pamgmph:
(A) Two members shall be selected from a list of thiee names for
each nomination submitted by the president of the senate anci
two members shall be Wected from as list of three names for
each nominaLion submiLted by che speaker of the house of
representatives, in collaboration with the legislators froin
the county in which the designated district is located;
provided further that the governoy shall seleM a name no
later than days after receipt of each list ;
(B) Three members appointed by the governor pursuant to section
26-34 ; provided that :
( i ) One member shall represent the business sector within
the designated district;
( ii ) One member shall have experience and expertise in the
area of Hawaiian cultural practices; and
( iii ) One member shall be a menber of the public and a
resident of the county in which the designated district
is located;
provided further that the governor shall appoint these
members no later than days after designation of the
redevelopment district; an(i
(C) The seven members of the public shall have expertise in
development of commercial, industrial, resort , and hotel
lands as well as expertise in at Least one of the following
areas and shall be selected on the basis of their knowledge,
experience, and expertise in :
(i) Management of small or large businesses;
(ii) Economics, banking, investment , or finance;
(iii ) Real estate development;
(Q) Real estate management;
(v) Marketing;
(W ) Hawaiian cultural practices; or
(vii ) Hotel and resort management ;
IiR)vided further that of Ic seven inernbers of the publk, three inembers Shall be residents ofthe county in
which the desigimled dimrict is kwined and A rnmnbem shA be rcsWents of the Stme.
(c) The committee shall eJect its chairperson Erom among its members
of the public .
(d) The members of the committee shall serve without compensation but
shall be reimbursed for reasonable expenses, including travel expenses,
incurred in the performance of their duties . This subsection shall not be
construed to prohibdt the ex officio members oE the committee frorl
receiving their salaries and wages for their work as public officials .
(e) The committee shall appoint a district administrator, who shall.
be the chief executive officer for the designated district . The district
administrator shall have expertise in development of commercial,
industrial, resoy t , or hotel lands as well as expertise in at least one of
the following areas and shall be selected on the basis of the person ' s
knowledge, experience, and expertise in management of smaLl or large
businesses; economics, banking, investment , or finance; real estate
development ; real estate management ; law; marketing; or hotel and resort
management . The committee shall set the district administrator ' s duties,
responsibilities, holidays, vAwac ations, leaves, hours of work, and working
conditions . The committee shall set the sal-ary of the district
administrator, who shall serve at the pleasure of the committee and shall..
be exempt from chapter 76 .
(f) The committee shall be dissolved upon the completion Of tM
redevelopment project .
§171-D Powers and duties ; generally; exemption from administrative
supervision of boards and commissions . (a ) The connittee shall have the
folLowi-ng powers and duties :
(1) Through its district adnriirriiswmor, appoint: Wand ernployccm rwescdbe their duties and qualifications,
and fix their salaries, without regard to chapter 76;
(2) Through its district administrator
(A) Allocate space or spaces that are to be occupied by the
committee and appioprLate staff; and
(B) Purchase necessary supplies, equipmenL , or furniture;
(3) Mpare a redevelopirrent plan (err the devignawd district that AaH be submiuccl to the board Q review
and approval;
(4) Flot"AdrsUnding any Mer law to the contrary, Wase pubhc lands in a designal.ed district and renew or
renegotiate any lease in connection %vidi any lnqject contained in the redevelopment plan for the designated
district, (rn ternm and CMWhiOlIS PLUSUant to section 171-E and consistent with the redevelopirrent. plan;
(5) Prepare or cause to be pmpared plans, design criteria, landscaping, ,ind estimates ofcosts for the,
constrLIC6011, rehabilhation, or repair of any project contained in the redevelopawnt plan fbr the designawl
district, and florn time to time to modify the plans, or estin-rates,
(6) Conduct studies in C011junCti011 With COUnty and state agencies necessary to determine the appropriate
activities for redevelopment in the designated district;
(7) Reduce or waive the lease rental on any lease ofpublic ],in(] for any prQlect in the designated district that
requires substandal improvements; provided that the reduction or Avaiver shall not exceed one year;
(8) Make and execute all contracts and instr-urnents necessary for the exercise cit`its powers arid functions
relating to the designated district, including engaging ofthe services of consultants for rendering of'professional
and technical assistance and advice;
(9) Enter into a developirient agreement with a developer or developers 1or any project contained in the
redevelol)rnent plan; provided that the development agreen-rem Call cmAa&:
(A) A description of the location, area, and size of the parcel
to be developed;
(B) The use or uses to which the parcel shall be put A
conformance with the redevelopment plan and with applicable
state and county laws and ordinances;
(C) The period Doff time for the construction and completion of"
the redevelopment; and
(D) OLher terms and conditions that the committee deems
necessary;
10) 'A'ork Closely and C01111111111iCate with the county to coordinate the execution ofthe designated district's
planning, incremental projects, Nvork schedules, public works, and budget; and
( 11) Do any and all things necessary, to carry ota its junpows and exercise the powers given and granted in
this part,
(b) Notwithstanding any law to We contrary, the COMMittee Shall JDCi
exempt From section 26-35 (a) (1 ) , (4 ) , (5) , and ( 6) .
5171-E District redevelopment plan. (a) The committee shall prepare
a redevelopmenL plan Or An Wignated district, incJuding districL
development- poll-cies, Lhe district improvement proqram, necessary public,
facilities, and He development guidelines and rules for the designated
district . In carryinq out its planning activiti-co, the committee shall.
comply with chapter 205A and applicable county building and zoning
ordVances .
(b) The committee shall prepare a redevelopment plan for the,
designated district that :
(1) BMWs, it applicable, areas principally lor
(A) Commercial activities;
(B) Processing, construction, manufacturing, transportation,
wholesaling, storage, and similar industrial- activities;
(C) Resort and hoLel activities, including uses that provide
facilities and services for visitors; and,
(D) Public facilities and recreational facil- Ities, with detailed
standards for height, bulk, Hze, and locatLon of buildings;
(2) Includes a district-wide improvement prograrn for necessary district-wide public facilities within the
designated distr1t;
(3) Includes plans, specifications, and estimates of the costs for the devekMinent, construction,
ivconsquerion, or improvement clayey project in the designated district, and aoin time to tune rnodi-ly the plans,
Specifications, or estiniatcs;
(4) If possible, identifies specific uses for areas in the designated WOO and the required parceling of land
into nurrinirun size areas related to the specific uses;
(5) Detertnines the lease rented that should be established Or the specific uses and the terms and conditions
of the leases;
(6) Fstablishes interim development controls to be implemented during the transition to the execution of the
provisions of the redevelopment Plain Such as recommending the holdover of a lessee PLU-SUclut to section 171-40
or issuance ol"permits pursmant to section 171-55 to existing lessees upon the expiration of`their lease tern:is, and
(7) Allows the rise of land or any building existing on the (late the redevelopinent plan is adopted to Continue,
as a nonconforming rise; provided that the nonconl'onning building shall not be replaced, expanded, or changed
to another nonconforming use.
(c) The district redevelopment plan may provide for the withdrawal or
taking for public purposes of public land or portion of public land undor a
lease . The rental shall be reduced in proportion to the value M the
portion of the premises condemned, and the lessee shall be entitled to
receive the proportionate value of the permanent improvenents legally made
to or constructed upon the land by the lessee taken in the proportion that
it bears to thp unexpired term of the lease .
(d) Prior to adoption, the committee shall hold as public hearing on a
proposed redevelopment plan for the designated district and shall consider
the comments received and incorporate any revisions to the p an that may be
necessary.
(e) The committee shall submit an annual report on the progress of
the redevelopment project to the board . The report may include the
Yedeve lopment plan recommended by the commi-ttee with its recommendations
for appropriations by the legislature or the authorizati-on of bonds or
both, to implement the redevelopment plan in as timely manner . The board
shall review and approve the recommended redevelopment plan and shall
submit the report to the governor and the legislature with a request for
the required appropriations and bond authorization .
§171-F Designated redevelopment district revolving fund. (a ) A
separate revolving fund shalL be established foi each redevelopment
district designated pursuant to section 171 -B, into which shall be
deposited:
(1) filly per cent of the revenuec Nome, and receols of the dee annient From OIC J)Ubfic lands in the
designated KIM, n=%Manding sectio n 1.11.,.19;
(2) Moneys approl)rialed by the legiSkItUre I.o the revolving fund; and
(3) Any gifis, grmun and other Wds accepted hay the coininklee.
Each revolving fund shall bear the name used by the legislature in
designating the redevelopment district .
(b) Moneys in each designatRd redevelopment district revolving fund
shall be expended by the committee and used in the designated district for
the purposes of this pan ; provided that no expenditure shall be made from
the fund and no obligation shall he incurred against the fund in excess of'
the amount standing to the credit of the fund,
(c) After the committee is dissolved, the unencumbered balanM
remaining in the corresponding redevelopment distrdct revolving fund shall
he transferred to the special land and development fund established
pursuant to section 171-19 . ''
PART 111
SECTION 3 . The legislature designates the public lands on the Waiakea
peninsula on the island of Hawaii as the Waiakea peninsula redevelopment
district .
SECTION 4 , The Waiakea peninsula redevelopment district shall include
the area bounded by the shoreline from the intersection of Whiwai street-,
and Kamehameha avenue; Kamehameha avenue to its intersection with
Kalanianaole avenue; Kalanjanaole avenue to its intersection with Ranyan
way; Banyan way from its intersection with Kalanianaole avenue to its
intersection with Banyan drive; from the intersection of Banyan way and
Banyan drive to the shoreline; the shoreline around the Waiakea peninsula,
including Mokuola island, to the intersection of Lihiwai street and
Kamehameha avenue .
SECTION 5 . There is estab 3ished a Waiakea peninsula redevelopment
district planning committee . The committee shall be appointed as provided
in section 171-C, Hawaii Revised Statutes, and shall exercise the poweys
and duties in the designated district as authorized by chapter 171 , part.
, Hawaii Revised Statutes . Pursuant t nection 171 -R (c) , Hawaii,
Revised Statutes, the public lands within the Waiakea peninsula
redevelopment district are transferred to the Waiakea peninsula
redevelopment district planning committee .
SECTTON 6 . There is established the Waiakea peninsula redevelopment
district revolving fund, into which shall be depositpd :
(1) fifty per cent; of the revenrics, inconic, and rcecipts froni Te puNic lands in the Wakea peninsula
redevelopnient. district;
(2) Mcmicys appropriated by the legishdury to the revcdving 10d; and
(3) Any gins, grM, and other fundsaccepted by the MATea penkmda raNclopnwnt Wict pWnAng
comAttee.
The moneys in the revolving fund shall be used in the Waiakea peninsula
redevelopment district for the puiposes described in chapter 171, part
Hawaii Revised Statutes ,
SECTION 7 . There is appropriated out of the general revenues of the
State of Hawaii the sum of $ or so much thereof as may be
necessary for fiscal year 2020-2021 to be deposited into the Waiakea
peninsula redevelopment district revolving fund .
SECTION B . Theye is appropriated out of the Waiakea peninsula
redevelopment district revolving fund the sum of $ or so much
thereof as may be necessary for fiscal year 2020-2021 for the purposes of
this part .
The sum appropriated shall be expended by the department of land and
natural resources Eor the purposes of this part .
PART TV
SECTION 9 . Section 171 -6, Hawaii Revised Statutes, is amended to read
as follows :
Q171-6 Powers . Except as otherwise provided by law, the board of
land and natural resources shall have the powers and functions granted to
the heads of departments and the board of land and natural iesources under
chapter 2V
In addition to the foregoing, the board may :
(1) Adopt as seal;
(2) A(Inunister oaths;
(3) 10scribe l'orrns ofinstrunicnis and doctunents;
(4) Adopt rules which, upon c(nnydiance with chapter Q shall have the 16rce and effect oflaw�
(5) Set:, chaTc, dernaml, and collect reimonable fees for the preparation ofdocunients to be issued, for the
sumvying of public hndt and A-the iSSUu1g ofccrtified copics of its governinent recorcis, which fees, when
MAW, shall be ckposhed into the state general 1"MR1, U111ess otherwise specified in this chapter;
(6) Elstablish additional restrictions, requirements, or conditions, not, inconsistent with those prescribed in
this chapter, relating to the rise of particular land being disposed of', the terms of sale, lease, license, or permit,
and the qualifications of any person to draw, bid, or negotiate for public land;
(7) Reduce or NATaive the lease rental at the beginning ofthe lease on any lease of public land to be use(.] for
any agricultural or pastoral use, or for resort, commercial, Industrial, or other business rise where the land being
leased requires substantial improvements to be placed thereon; provided that SUCII reduction or waiver shall not:
exceed two years for land to be used for any agricultural or pastoral use, or exceed one year for land to be used
for resort, commercial, industrial, or other bLISilleSS use; prop ic led foullier that ifmm
a lease for resort, commercial,
—
iI'IdUStrial,,OthCr bLlSjrlCSS, or residential I.Lut-11(ises requires I lessee to demolish existing im roverrients orjjj-ovid(�
basic Infrastructure 111CILidingilrLiinagg, sewer, water,,c)cc.Lddy,.Lmd other utilities before fire lessee can make
vc use o
jj1LqdLlg Cf tile laird,jhe board may 'I I-C(ILICti011 or waiver of rental for a ILeriod of u
-- — -.L- ye , -- —ILto
—
twenty, y "AlLe .,-see's total ex-lenditUres for demolition or provision of the
S��ar� thqt�shqlj not i��xceed the atr�ognt of _ J��
infrasti-ticture
(8) Delegate to the chairperson or employees of tfie department ofland and natural resources, sub,ject to the
board's control ,arid responsibility, Such flowers and dirties as may be lawful or proper for the performance of the
functions unctions vestcd in the board;
(9) Use, arbitration under chapter 658A to settle any controversy arising out of any existing or future lease;
(10) Set, charge, and collect reasonable fees I'll all 'clo"101-111t sufficient to defi-ay the cost of'performing or
otherwise providing for the inspection of activities permitted upon the iSSUaTIC',e of'a land license involving a
corin-riercial purpose;
(11) Appoint masters or hearing officers to conduct public hearings as provided by law and under such
conditions as the board by rules shall establish;
(12) Bring such actions as may be necessary to remove or remedy encroachments -upon public lands, Any
person causing an encroachment upon public land shall:
(A) Be f i nec:i riot: thcm $1, 0 0 0 a day f o i the f.i-r',st of-ferlSe;
f i n d n C)t 1,e,";S t-I I,:I I I "",I, 0 0 0 n o r mo ,,e th a i i $4 , (101= e.r- clay
up o i i t-1 h e e c c)n d c)f f�--,i c,,3 e r�i r ci t,h e r e a _ter;
(C) If required by the board, restore the land to its original
condition if altered and assume the costs thereof;
(D) Assume such costs as may resuLt from adverse effects from
such restoration; and
(E) Be liable for administrative costs incuryed by the
depaitment and for payment of damages;
(13) Set; charge, and collect interest and a service charge on delinquent payrnents due on leases, sales, or
other accourns, The rate of interest shall not exceed one per cent as month and the service charge shall not
exceed $50 a rnonth for eadi delinquent payarent; provided that the contmet shall state the interest rate and the
service charge and be signed by the party to be charged;
(14) So, charge, and collect additkund rentals for the unauthoriZed Use of public lands by as lessee, licensee,
grantee, or permittee who is I WhAdon of any term or conditimi of a lease, hccnsq easernann or revocable
permit, retroactive to the date of the occurrence of TC ViOhKOM Such arnomAs shall be considered delinquent
payments and shall be SUbject to interest and service charges as pnwhkd in pamgraph (1p;
(15) Set, charge, and collect reasonatwfle lines for Wation of this chapter or any rUIC adopted thcreUnder.
Any person engaging in any proMbAd use of public lands or conlreting any prohibited activity on public Lands,
or v i(Alating any of the other provisions of this chapter or any rule adopt,ed thereunder, for which violation a
penalty is not otherwise provided, shall bw
(A) Fined noL moie than $5, 000 perm. violation for a first
violation or a violation beyond five years of the last
violation; pyovided that , after written or verbal
notification from the department, an additional $1 , 000 per
day per violation may be assessed for each day in which the
violation persists;
(B) Uned not more than $10, 000 per violation for a second
violation within five years of the last violation; provided
that, after written or verbal notificat -on from the
department, an additional $2, 000 per day per violation may
be assessed for each day in which the violation persists;
(C) Fined not more than $20, 000 per violation for a third or
subsequent violation within five years of the last.
violation; provided that , aftey written or verbal.
notification from the department, an additional $4, 000 per
day per violation may be assessed for each day in which the
violation persists; and
(D) Liable for administrative costs and expenses incurred by the
department and for payment for damages, including but not
limited to natural resource damages .
In addition to the fines, admirrisvative costs, and Wages provided For hereiriabove, lor damage to or
theft ofnatural resoui-ces, the board nmy also set, clun-ge, and collect a fine that, in its discretion, is appropriate
conAdeting the nue orthe natural res oume that is (briniaged (w the SLII')jCCt (,)t'tllC thCtl. In arriving at an
anmapdaw tine, the board inay consider the inarket value of the natural resource damaged or taken and any
other factor it deans appropriate, such as the WS Of HW MItUr,11 resource to its natural habitat and environtrient
and the cost of restorstlon or replacerrient. The remedies provided for in this paragraph are CU1uUIAtiVC and in
addition to any other remedies allowed by law.
No person shall be sanedoned pursuant toi this section for the exovise of native I lawaiian gathering rights
and n-altimml cultural practices as authorized by law or as permitted by the departi-nent pursuant toa article X!I,
section 7, of the Hawaii state constitution;
(16) Issue revenue bonds, suQkct to the approval of the leWskoure. MI reveriLle, bOudS shall be issued
pursuant to) part III ofchaliter 39, except as ptuvided in this chapter. All revenue bonds shall be issued in the
name of the department and not hi the name of the Raw. I& hnal mahwity date of die revenue b(mds inay be
any chae not exceeding thirty years froin the date of isnwnce;
(1 7) Pledge oar assign all or any part of the receipts and revenues of the deparmient. The revenue bonds shall
be payable tron'i and secured solely by the revenue derived by the deparhment born the imQuAl park or pals
for which the bonds are issued;
(18) Reirnburse the state general fund for debt service on general obligation bonds or reimbursable general
obligation bonds issued by the State for fnuposes of this chapter,
(19) Notwithstanding part: Il ofchapter 205A to the contrary, Ilan, design, construct, or)crate, and maintain
any lands or facilities under tae jurisdiction of the division of boating and ocean recreation ofthe del)LuIrnent
NNIithOUt the need to obtain a sI)ecial rnanagernent area rninor perinit, or special rnanagen-lent area use I)errnil; and
(20) Do any and all things n,eccssary to carry Out its PUrl)oses and exercise the powers granted in this
chapter."
S E C'PI 0 N 10 C ha p r 17 1 , I i a W ai t i R e V iE3 Ea d S- `1 t 11 t'-'e S i.s a iTi e-,n d e ci by
a c i c i n a n e w Ea c t i c)n t c) j:,a,r,t:- I t.o h z a p p i-c)p r i a �e I y, ci e ;i g it a.teicl a nd t,c.> r ea.d
as fo'l Lows :
"§171--I_, Development. of pj4bllc lands in a redevelopMqt..,Arga, _( ,i)_
(-,) faw to t:.he a loc,.al..
L c )L7 a 1. C)f t h e
n c y T e 1-.�ursuant: t-,o sec�tion 53--2 , wi ).tj- t.�.he ri p
P -L
c,.cnjnci,1 of t-he
—an—d
authoriz.ation of t-he
—LL, i s,1,a t.i i i)y c)i i c ur r e i t, ria s o L u t otiate a
www ,_t a (-jeveI.c)[,-,-,L:,IL buSMEImo.IS, Or' hotel,
01 us(---5s on puk),I J,c, 'I ands griti-ri a, -reclevelopro�,,-mt are,.a accordin t,c) a
-r,
tact v e I cak-Lr n I key t h(-= Loca.l. r-ecieve] c�)pLmit, -1 E ncy -,,uant to
The -iqr.eernent- ,-Aiall p.-rovicie fc)r the "Leasehol-d
t spo","j-t., i (1)?-i cd` 'I,a nd a ncish a,'!.I
...........
ILei(Ir � lLII ec I to (l)e develojjLn jm adtuding �L IQ�LatWn, , a,-all size of the
�jjt�� -gn�mt,A b a-4 s
Q?) �Ij�e.cifyjjie. fxrmitted ljse or ti,ses f'or tLh
,,ie qlL
— - t,
&(Igire that the I)errnitted use, Or uses COnfOl-I'll With all al,11i icabt��, stqIc ti county laws and orcjinanLes
-
(L4) Lnc LuLle the start and couipjglion dates of construction ncgL)tlated with the dev_c lolica;
LL
yjlie on-site and off' ' ' e ullm—,Mcnts invok,ed Nvith the develo trient;
tr—ovidethe lease—conlaicncenient and le�Liiination datQ, and rent reqjLjretnents �)f the latLd sIlLcified in the
develolymnA aggymyK; iind api
-
WARvide any Lather terms or condjfi(.n,' detertyained yj IV: necessaxylb;Lthe kvj reghyvehopTnaely: 4ggyY.it
SECTION 11 . Chapter 237, Hawati Revised StaLutes, is amended by
adding a new section to be appropriaLely designated and to read as foll-ows :
"§217- Rydeve1opM,qtpjojeCt. -(L') T 1-1 i-3-r-'2-a '51LC�LL sh a I—1- n o L P-i Y-
ruction of work or
or 1mRLovarra LLtj of 1,
redeveloRMLLL_Rroject .
jLh For the purposes of this section :
nLLLstruction of work or jmRLoveaaLL0_af_q redevelopmenn project"
inc Auldess des igLi, engineer i and materials ass(,-)Wated
1) L hr=, d ar 1 ry. t I o I I a n(-L Cora ;t _,,_LLL a _redeveloPm!nL-RLWect that is
Rart of the redevelopment local redevelopmenj ,agency
pqrALAnL_to chaRLLeL 5 )) .
jo L-L_L 3
214edeveloqMnent project�." -s'hal I havL _hr, ,,ame an defined in
secLion_53-1.''
SECTION 12 . Section 238-1 , Hawaii Revisod Statutes, is amended by
amending the definition of "use" to read as follows :
""Use" (and any nounal , verbal , aft )ectivai, adverb -al , and other
equdvalent form of the term) heroin used interchangeably means any use,
whet her the use is A such nature an to cause the property, services, or
contracting to be appreciabJy consumed or not , or the keeping of the
property or services for such use or for sale, Me exercise of any right or
power over tangible or inLangible personal property incident to the
ownership of that, property, and shall include control over Langi-ble or
intangibLe property by a sollor who is Lccnsed or who should be licensed
under chapter 237, who directs Lhe imporLation of the property into the
WaLe Cor sale and dnLivery to as purchaser in _.he State, liability and free
on board (FOB) to the contrary not withstandinq, regardless of where title
passes, but the term "use" shall not include :
(I) 'retriporary use of property, not ofa perishable or quickly consurnable nature, where the property is
irnported into the State temporary use (not sale) therein by the person importing the sarne and is not intended
to be, and is not, kept permanently in the State. For example, without luniting the generality ofthe foregoing
language:
(A) In the case of a contractor importing permanent equipment
for the performance of a construction contract , with intent
to remove, and who does remove, the equipment out of the
State upon completing the contract ;
(B) In the case of moving picture films impoxted for use in
theaters in the State with intent or under contract to
transport the same out of the State after completion of such
use; and
(C) In the case of a tiansient visitor importing an automobile
or other belongings into the State to be used by the
transient visitor. while therein but which are to be used and
are removed upon the transient visitor ' s departure trom the
State;
(2) Use by Me taxpayer of property acqdred by the taxpayer solely byway of gift;
(3) Use which is Onited U) the receipt of articles and the room thmvK to the permni ninn whore acquired,
irrunediately or within a reasonable time either after temporary trial Or WithOLIt trial;
(4) Use orgoods imported hho the State by the owner ofa vessel or vessels engaged in interstate or foreign
commerce and held Or and used ordy as ship stares [car' the vessels;
(5) The use or keeping for rise of househ(dd goods, personal effects, and private autornobiles imported into
the State for noribLISASS use by a person who:
(A) Acquired Vem in anKher sLaLe, territory, d [ strict, or
country;
(B) At Lhe timc of the acquisition was a bona fide resident of
anot her state, to r r L L or y, di s L r ict , or coun t r y;
(C) Acquired Lhe property for use ouLside Lhe State; and
(D) Made aclual and substantial use thereof outside this StWe;
provided that as to an article acquked less than three rnonths prior to the titne of its irnportation intra the
State it shall be presumed, L1.1101 wind unless clearly proved to the contrary, that it was accluked For use in the State
and that its use outside the State was trot actual and substantial;
(6) The leasing or renting of any aircraft or the keeping ofany aircraft solely for leasing or renting to lessees
or renters using the aircraft for commercial transportation ofpassengers and goods or the acquisition or
importation of any such aircraft or aircraft engines by any lessee or renter engaged in interstate air
transportation. For purposes ofthis paragraph, "leasing" includes all forins of lease, regardless of whether the
lease is an operating lease or financing lease, The definition of'"interstate air transportation" is the sarne as in 49
LES,G 40102;
(7) The:, use ofocearigoing vehicles for passenger or passenger and goods transportation frorn one point to
another within the State as a public utility as defined in chapter 269;
(8) The use of inawrkit, pads, or toots imported or Purchased by a person LiMaCd Wider chapter 237 which
are used for aimraR swNkc and andmeimitce, or the consduchon of an aircraft service and isainwriance facility
as those terms are defined in section 237-24.9;
(9) The use of services or contracting imported for resale where the contrartirig or services are for resale,
constuription, or use outside the We pursuant to section 237-29.53(a); I ftfit4j
o o) 'The use of property, services, or conlacthig imported by Rwdgn diplornats and consular officials who
are holding cards issued or aixthorized by the United States Department of State granting there an exemption
from state taxes[-];-,in(
j
1110 Ilse (if ru'veriaQw,
i,—lrts, or tools LiTlinr—tedor purchased by_aLperson licensed under chapter 137 Haat are
used for to: construction ofArotig orfrnploycnnerijs of as rgleveloprninit project yoUiried in section 23171-
With regard to purchases made and distributed under the authority of
chapter 421 , a cooperative association shall be deemed the user thereof . ,"
PART VI
SECTION 13 . In codifying the new sections added by section 2 of this
Act, the revisor of statutes shall substitute appropriate section numbers
for the letters used in designating We new sections in this Act .
SECTTON 14 . This Act does not affout rights and duties Lhat maLured,
penalties that were incurred, and proceedings that were begun before its,
effective date .
SECTION 15 . Statutory material to be repealed is bracketed and
stricken . New statutory material is underscored .
SECTION 16 . This Act shall takr effcct an the date Hat the ununty of
Hawaii repeals the Banyan Drive Hawaii redcvelopmeM agency; provided that.
the county of Hawaii repeals the Banyan Drive Hawaii redevelopment agency
pricy to ; provided Eurther that if the county of Hawaii repeals
the Banyan Drive Hawaii redevelopment agency prior to July 1 , 2020, this
Act shall take effect on July 1 , 2020 .
INTRODUCED Y :
Report Title
DLNR;EI; Puf€i 'uc.'; Lands; Redevelopment;ent.; Wa:-a.r ala.esa:a Peninsula; Appropriation
Description
Authorizes the !:'l.es.igna.t.i..onof afreca.`:; or regions of public l_c::i.nds c.1..ass11.�,1...ed
as commercial ,cial , lnd€st.r.las.l , r:'e`-,>c1rt: ;::anfl hotel, and the establishment.
as Ira .,
implementation of guidelines f rr _ credevelopment of the areas oaregions
that w:i_ll.. ( 1.) modernize the policies for the manaclementu. of public lands
in the designated area; (2) establish a:x plan for the designated area,
including Lr.dine chi sLr _i.c:t:::-wide improvements,nt::s, thaat is coordinated atu.ed w:i t h state and
county ] :arid use and planning policies; and (:3) implement asset and property
management concepts t h a L can n op t,..:C.m i z e income flr.om N. h e properties (.a.n d evolve
in re:.;pc.}rrse to changing principles of property administration . Dr.::a,:ignaat.cw..,ss
the public lands on the WEa.i,a-al<c.srca p€.ra:i..rrsula!a on 't.Eae island of Hawaii ea-a,{.; Lha C;
Wa:ai.aa>ce a Peninsula Redevelopment r,frment kw,tastric;t. . Allows the Department of Land
and Natural Resources to issue a-a rent r edtact_i.on or waiver for certain
lessee ' s erS'pe11se .r for demolition or provision of basic infrastructure .
Authorizes ,aa local rerlrry ofrment. agency to contract ar.:t w=i..th wa developer for
construction o.f non-residential i..€::lfytrtiasl projcryc,t,:; on lr>ak>Li.c:. 1 ,.~atrd within a:a
r°c,,r.e v e l o lr rar e n t,. area . Exempts the costs of'fE.c anstr uc:tiF::rn of work c'>:r-
improvements of a r"ed vE'1opnent:, project flrf"DCII general excise a1r..d use trar':Ews .
Takes effect tap€.:Fra the County of Hawaii r,epa 1. i.n<f t:.}ae t3earry4.arr Drive Hawaii
r edeve:l ol"arCm€,,nt. agency. Makes an appropriation .
The summary description of legislation appearing on this page is for inf6rroatiorrol purposes only and is not legislation or
evidence of legislative intent.