Hawaii-2021-HB774-Amended

SECTION 1. Section 206E, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part . PULEHUNUI COMMUNITY DEVELOPMENT DISTRICT

§206E-A Pulehunui community development district; purpose; findings. The legislature finds that public lands in Pulehunui, Maui, are underutilized. Redeveloping, renovating, or improving these public lands to provide suitable recreational, residential, educational, industrial, governmental, and commercial areas where the public can live, congregate, recreate, attend schools, and shop as part of a thoughtfully integrated experience is in the best interest of the State.

The legislature further finds that the establishment of an autonomous community development authority will facilitate the development and improvement of Pulehunui public lands.

§206E-B Definitions. As used in this part, unless the context otherwise requires:

"Authority" means the Pulehunui community development authority.

"District" means the Pulehunui community development district established by this part.

§206E-C Pulehunui community development authority; powers; members; voting and quorum. (a) There is established a Pulehunui community development authority, which shall be a body corporate and a public instrumentality of the State for the purposes of this part. The authority shall be placed within the Hawaii community development authority for administrative purposes.

(b) The jurisdiction of the authority shall include development within the Pulehunui community development district. All development within the district shall require a permit from the authority.

(c) Except as otherwise provided by law, the authority may make and execute contracts and all other instruments necessary or convenient for planning and developing the Pulehunui community development district.

(d) The authority shall consist of the following members or their designees:

(1) The director of finance;

(2) The director of transportation;

(3) The chairperson of the board of land and natural resources;

(4) The comptroller;

(5) The adjutant general;

(6) The director of public safety;

(7) The executive director of the Hawaii community development authority;

(8) The Hawaii community development authority cultural specialist;

(9) The mayor of the county in which the Pulehunui community development district is located;

(10) The chairperson of the county council of the county in which the Pulehunui community development district is located;

(11) A resident of the island of Maui, who shall be selected by the president of the senate and invited to participate; and

(12) A resident of the island of Maui, who shall be selected by the speaker of the house of representatives and invited to participate.

(e) All members except the director of finance or the director's designee and the adjutant general or the adjutant general's designee shall serve as voting members and shall be considered in determining quorum and majority. The director of finance or the director's designee and the adjutant general or the adjutant general's designee shall participate in these matters as ex officio, nonvoting members and shall not be considered in determining quorum and majority.

(f) Six voting members of the authority shall constitute a quorum to do business, and any action taken by the authority shall be validated by a majority of the quorum.

(g) The members of the authority shall annually elect the chairperson and vice chairperson from among its members.

(h) The members of the authority shall serve without compensation but shall be reimbursed for expenses, including travel expenses, necessary for the performance of their duties.

§206E-D District; established; boundaries. The Pulehunui community development district is established and shall be composed of the following properties:

(1) TMK 2-3-8-008-001;

(2) TMK 2-3-8-008-007;

(3) TMK 2-3-8-008-037; and

(4) TMK 2-3-8-009-038.

§206E-E Development policies. The following development policies shall govern the authority's actions in the district:

(1) The authority may engage in planning, designing, and construction activities within and outside the district; provided that activities outside the district shall be those the authority deems necessary to carry out the development of the district established in this part, including infrastructure development, area-wide drainage improvements, roadway realignment and improvements, business and industrial relocation, and other related activities. The authority may undertake studies or coordinating activities in conjunction with the county or appropriate state agencies and may address facility systems, the need for industrial relocation, and other issues;

(2) Archaeological, historical, and cultural sites shall be preserved and protected in accordance with chapter 6E;

(3) Endangered species of flora and fauna shall be preserved to the extent required by law;

(4) Land use and development activities within the district shall be coordinated with and, to the extent possible, complement existing county and state policies, plans, and programs affecting the district; and

(5) Public facilities within the district shall be planned, located, and developed to support the development policies established by this part and any rules adopted pursuant to this chapter.

§206E-F Financial aid from and contracts with the federal government. (a) The authority may:

(1) Borrow money or accept grants from the federal government for or in aid of any development project the authority is authorized to undertake pursuant to this part;

(2) Issue bonds or other evidence of indebtedness and pledge revenues and other assets as security for indebtedness incurred pursuant to this section;

(3) Repay any indebtedness incurred pursuant to this section, including any interest thereon;

(4) Procure insurance or loan guarantees from the federal government for the payment of any debts or parts thereof secured by mortgages made or held by the authority;

(5) Comply with any conditions required by the federal government in any contract for federal assistance; and

(6) Execute contracts with the federal government.

(b) It is the purpose and intent of this section to authorize the authority to do all things necessary to secure the cooperation of and financial aid from the federal government for any planning, design, construction, maintenance, and development that the authority is authorized to undertake pursuant to this part.

§206E-G Development district governance; memorandum of agreement. Notwithstanding section 206E-3, for matters affecting the district, the authority and the comptroller shall execute a memorandum of agreement with the appropriate state agencies; provided that for matters affecting TMK 2-3-8-008-037, the executive director of the Hawaii community development authority shall execute a memorandum of agreement with the appropriate state agencies.

§206E-H Annual comprehensive report. Not less than twenty days prior to the convening of each regular session of the legislature, the authority shall submit to the legislature an annual comprehensive report on the progress of development within the district."

SECTION 2. Section 206E-3, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The authority shall consist of the director of finance or the director's designee; the director of transportation or the director's designee; a cultural specialist; an at-large member; an at-large member nominated by the [~~senate~~] president[;] of the senate; an at-large member nominated by the speaker of the house[;] of representatives; three representatives of the Heeia community development district, comprising two residents of that district or the Koolaupoko district, which consists of sections 1 through 9 of zone 4 of the first tax map key division, and one owner of a small business or one officer or director of a nonprofit organization in the Heeia community development district or Koolaupoko district, nominated by the county council of the county in which the Heeia community development district is located; three representatives of the Kalaeloa community development district, comprising two residents of the Ewa zone (zone 9, sections 1 through 2) or the Waianae zone (zone 8, sections 1 through 9) of the first tax map key division, and one owner of a small business or one officer or director of a nonprofit organization in either the Ewa or Waianae zone, nominated by the county council of the county in which the Kalaeloa community development district is located; three representatives of the Kakaako community development district, comprising two residents of the district and one owner of a small business or one officer or director of a nonprofit organization in the district, nominated by the county council of the county in which the Kakaako community development district is located; the director of planning and permitting of each county in which a community development district is located or the director's designee, who shall serve in an ex officio, nonvoting capacity; and the chairperson of the Hawaiian homes commission or the chairperson's designee, who shall serve in an ex officio, nonvoting capacity.

All members except the director of finance, director of transportation, county directors of planning and permitting, and chairperson of the Hawaiian homes commission or their designees shall be appointed by the governor pursuant to section 26-34. The two at-large members nominated by the [~~senate~~] president of the senate and speaker of the house of representatives and the nine representatives of the respective community development districts shall each be appointed by the governor from a list of three nominees submitted for each position by the nominating authority specified in this subsection.

The authority shall be organized and shall exercise jurisdiction as follows:

(1) For matters affecting the Heeia community development district, the following members shall be considered in determining quorum and majority and shall be eligible to vote:

(A) The director of finance or the director's designee;

(B) The director of transportation or the director's designee;

(D) The three at-large members; and

(E) The three representatives of the Heeia community development district;

provided that the director of planning and permitting of the relevant county or the director's designee shall participate in these matters as an ex officio, nonvoting member and shall not be considered in determining quorum and majority;

(2) For matters affecting the Kalaeloa community development district, the following members shall be considered in determining quorum and majority and shall be eligible to vote:

(A) The director of finance or the director's designee;

(B) The director of transportation or the director's designee;

(D) The three at-large members; and

(E) The three representatives of the Kalaeloa community development district;

provided that the director of planning and permitting of the relevant county and the chairperson of the Hawaiian homes commission, or their respective designees, shall participate in these matters as ex officio, nonvoting members and shall not be considered in determining quorum and majority;

(3) For matters affecting the Kakaako community development district, the following members shall be considered in determining quorum and majority and shall be eligible to vote:

(A) The director of finance or the director's designee;

(B) The director of transportation or the director's designee;

(D) The three at-large members; and

(E) The three representatives of the Kakaako community development district;

(4) For matters affecting the Pulehunui community district, membership for determining quorum, majority, and voting authority shall be as provided under section 206E-C.

In the event of a vacancy, a member shall be appointed to fill the vacancy in the same manner as the original appointment within thirty days of the vacancy or within ten days of the senate's rejection of a previous appointment, as applicable.

The terms of the director of finance, director of transportation, county directors of planning and permitting, and chairperson of the Hawaiian homes commission or their respective designees shall run concurrently with each official's term of office. The terms of the appointed voting members shall be for four years, commencing on July 1 and expiring on June 30; provided that the initial terms of all voting members initially appointed pursuant to Act 61, Session Laws of Hawaii 2014, shall commence on March 1, 2015. The governor shall provide for staggered terms of the initially appointed voting members so that the initial terms of four members selected by lot shall be for two years, the initial terms of four members selected by lot shall be for three years, and the initial terms of the remaining five members shall be for four years.

The governor may remove or suspend for cause any member after due notice and public hearing.

Notwithstanding section 92-15, a majority of all eligible voting members as specified in this subsection shall constitute a quorum to do business, and the concurrence of a majority of all eligible voting members as specified in this subsection shall be necessary to make any action of the authority valid. All members shall continue in office until their respective successors have been appointed and qualified. Except as herein provided, no member appointed under this subsection shall be an officer or employee of the State or its political subdivisions.

For purposes of this section, "small business" means a business [~~which~~] that is independently owned and [~~which~~] that is not dominant in its field of operation."

SECTION 3. If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

SECTION 4. In codifying the new sections added by section 1 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

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

HOUSE OF REPRESENTATIVES	H.B. NO.	774
THIRTY-FIRST LEGISLATURE, 2021		H.D. 1
STATE OF HAWAII		S.D. 1