Hawaii-2016-HB1957-Introduced

SECTION 1. (a) There is established within the department of accounting and general services a pilot project to be known as the common elements maintenance fee and rent pilot project, which shall apply to office space leased to state departments at the building known as Alii Place, located on land identified as TMK (1) 2-1-017-008-0000. The department of accounting and general services shall provide general and administrative oversight of the pilot project. The pilot project shall terminate on June 30, 2021.

(b) For the pilot project, notwithstanding any other law to the contrary, the department of accounting and general services shall implement transfer pricing as set forth in this Act when determining and assessing common elements maintenance fees and rent for office space leased to state departments at Alii Place.

(c) In determining the rent amount applicable to a department leasing office space at Alii Place, the department of accounting and general services shall consider the following factors, among other things:

(1) The number of employees of the respective department that work at Alii Place in office space leased by that department;

(2) The amount of square feet of office space allotted per departmental employee; provided that for those employees for which the allotment of office or work space is established by collective bargaining agreement, the allotment amount established by the collective bargaining agreement shall be used; and

(3) The cost per square foot for the leased office space as established by the department of accounting and general services.

(d) In determining the proportionate share of repair and maintenance costs to be allotted as common elements maintenance fees to a state department leasing office space at Alii Place, the department of accounting and general services shall consider the following factors, among other things:

(1) The number of employees of the respective department that work at Alii Place in office space leased by that department; and

(e) The department of accounting and general services shall collect annual common elements maintenance fees and rent from state departments at Alii Place and shall deposit the moneys into the common elements maintenance fee and rent revolving fund established under subsection (f).

(f) There is established a common elements maintenance fee and rent revolving fund. All proceeds collected by the department of accounting and general services through the assessment of common elements maintenance fees and rent established by this Act shall be deposited into the revolving fund. Moneys in the revolving fund shall be expended by the department of accounting and general services for costs associated with acquiring, operating, and maintaining Alii Place; provided that the moneys collected from common elements maintenance fees shall be kept in a separate account in the revolving fund and expended for necessary expenses incurred for repair and maintenance of the common elements of Alii Place.

(g) The department of accounting and general services shall submit an annual report of its findings and recommendations, including any proposed legislation, to the legislature; provided that the first annual report shall be submitted no later than twenty days prior to the convening of the regular session immediately following the date the State acquires title to Alii Place, and subsequent annual reports shall be submitted no later than twenty days prior to the convening of each subsequent regular session, until and including the regular session of 2021.

Annual reports shall include:

(1) An evaluation of the pilot project, including any necessary changes to the pilot project;

(2) The common elements maintenance fees and rent amounts established by the department of accounting and general services pursuant to this Act;

(3) The number of employees located on premises per state department leasing office space at Alii Place;

(4) The amount of common elements maintenance fees and rent collected, deposited into and expended from the common elements maintenance fee and rent revolving fund, including a detailed listing of all expenditures; and

(5) Any other information deemed relevant by the department of accounting and general services.

(h) As used in this Act:

"Common elements" means and includes:

(1) The parcel of land, identified as TMK (1) 2-1-017-008-000, upon which Alii Place is situated;

(2) The foundations, columns, girders, beams, supports, main walls, roofs, halls, corridors, lobbies, stairs, stairways, fire escapes, and entrances and exits of Alii Place;

(3) The basements, flat roofs, yards, gardens, recreational facilities, parking areas, and storage spaces of Alii Place;

(4) The premises for the use of janitors and other persons employed for the operation of Alii Place;

(5) Central and appurtenant installations at Alii Place for services such as power, light, gas, hot and cold water, heating, refrigeration, air conditioning, and incinerators;

(6) The elevators, escalators, tanks, pumps, motors, fans, compressors, ducts, and in general all apparatus and installations existing for common use at Alii Place;

(7) Facilities as may be designated as common elements by the department of accounting and general services; and

(8) All other parts of the Alii Place property necessary or convenient to its existence, maintenance, and safety, or normally in common use.

"Common elements maintenance fee" means the fee assessed by the department of accounting and general services and paid by state departments leasing office space at Alii Place to cover the costs of repair and maintenance of the common elements of Alii Place.

SECTION 2. The department of accounting and general services may adopt rules in accordance with chapter 91, Hawaii Revised Statutes, for the purposes of this Act.

SECTION 3. The pilot project established by this Act shall be conducted only if title to the building known as Alii Place, located on land identified as TMK (1) 2-1-017-008-0000, is transferred to the State of Hawaii.

SECTION 4. This Act shall take effect upon its approval; provided that this Act shall be repealed on June 30, 2021.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1957
TWENTY-EIGHTH LEGISLATURE, 2016
STATE OF HAWAII