Hawaii-2012-SB1415-Introduced

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

"Part . banyan drive community development district

§206E-A Banyan Drive community development district; purpose. The legislature finds that:

(1) The Banyan Drive area of the island of Hawaii contains about eighty-five per cent of the overnight visitor accommodations in east Hawaii;

(2) The State of Hawaii owns virtually the entire Banyan Drive area;

(3) There has been little incentive for the lessees of the properties in the area to make major investments in improvements to their infrastructure, resulting in the deterioration of the area's infrastructure and facilities; and

(4) The State has a responsibility to ensure that the Banyan Drive area does not deteriorate and have a harmful impact on the economy of the east Hawaii community as a whole.

The authority shall plan a district where hotel and resort, commercial, residential, and public uses may coexist compatibly within the same area.

§206E-B Advisory committee. (a) There is established a Banyan Drive advisory committee consisting of five members who shall be voting members of the authority on issues relating to the Banyan Drive community development district.

(b) The members shall consist of:

(1) The planning director of the county of Hawaii;

(2) One member appointed by the governor from a list of three names submitted for appointment by the president of the senate, and one member appointed by the governor from a list of three names submitted for appointment by the speaker of the house of representatives; and

(3) Two members appointed by the governor as provided in section 26-34.

(c) The advisory committee shall be responsible for the development of community development policies, the district improvement program, and the development guidelines for the Banyan Drive area and shall submit its recommendations to the authority.

§206E-C Banyan Drive community development district; boundaries. The Banyan Drive community development district is established. The district shall include the area bounded by the shoreline from the intersection of Lihiwai Street and Mamalahoa Highway; Mamalahoa Highway to where it becomes Kamehameha Avenue; Kamehameha Avenue to its intersection with Keaa Street; Keaa Street from its intersection with Kamehameha Avenue to its intersection with Kalanianaole Avenue; Kalanianaole Avenue to Kumai Street; Kumai Street to its intersection with Ocean View Drive; the north end of Ocean View Drive to the shoreline; and the shoreline from the north end of Ocean View Drive to the intersection of Lihiwai Street and Mamalahoa Highway.

§206E-D Development guidance policies. The following shall be the development guidance policies generally governing the authority's action in the Banyan Drive development district:

(1) The authority may engage in planning, design, and construction activities relating to infrastructure development and other activities the authority determines is necessary to carry out the redevelopment of the district;

(2) The authority may conduct studies in conjunction with county and state agencies necessary to determine the appropriate activities for the development in the district;

(3) Land use and redevelopment 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

(4) Public facilities within the district shall be planned, located, and developed to support the redevelopment policies established by this chapter for the district.

§206E-E Banyan Drive community development revolving fund. (a) There is established in the state treasury the Banyan Drive community development revolving fund, into which shall be deposited:

(1) Notwithstanding section 206E-16, all revenues, income, and receipts of the authority for the Banyan Drive community development district; and

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

(b) Moneys in the Banyan Drive community development revolving fund shall be used solely for the purposes of this part.

(c) All interest accruing from the investment of the moneys in the fund shall be credited to the Banyan Drive community development revolving fund."

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

"(b) The authority shall consist of thirteen voting members. The director of finance, the director of business, economic development, and tourism, the comptroller, and the director of transportation, or their respective designated representatives shall serve as ex officio, voting members. One member shall be appointed by the governor from a list of not less than three prospective appointees submitted by the president of the senate, and one member shall be appointed by the governor from a list of not less than three prospective appointees submitted by the speaker of the house of representatives. Seven members shall be appointed by the governor for staggered terms pursuant to section 26-34; provided that four members shall be appointed at large and, initially, three members, hereinafter referred to as county members, shall be selected from a list of ten prospective appointees recommended by the local governing body of the county in which the initial designated district is situated; and provided further that when vacancies occur in any of the three positions for which the members were selected from a list of county recommendations, the governor shall fill such vacancies on the basis of one from a list of four recommendations, two from a list of seven recommendations, or three from a list of ten recommendations. The list of recommendations shall be made by the local governing body of the county. Of the nine members appointed either by the governor from the lists provided by the president of the senate and speaker of the house, at-large by the governor, or as county members recommended by the local governing body of the county in which the initial designated district is situated, at least two members shall represent small businesses and shall be designated as the small business representatives on the board whose purpose, among other things, is to vote on matters before the board that affect small businesses. The small business representatives shall be owners or active managers of a small business with its principal place of operation located within the physical boundaries of the initial designated district. Notwithstanding section 84-14(a), the small business representatives shall not be prohibited from voting on any matter concerning any district under the board's jurisdiction; provided that the matter is not limited to solely benefiting the specific interest of that member and the matter concerns broader interests within the district. If an additional district is designated by the legislature, the total membership of the authority shall be increased as prescribed above by the appointment of three additional members, except as provided for in [~~section~~] sections 206E-191[.] and 206E-B. Notwithstanding section 92-15, a majority of all members shall constitute a quorum to do business, and the concurrence of a majority of all members shall be necessary to make any action of the authority valid; except that, on any matter relating solely to a specific community development district, the members representing districts other than that specific community development district shall neither vote, nor shall they be counted to constitute a quorum, and concurrence shall be required of a majority of that portion of the authority made up of all ex officio voting members, members at large, and county and district members representing the district for which action is being proposed for such action to be 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 is independently owned and which is not dominant in its field of operation."

SECTION 3. To implement this Act, the department of land and natural resources is directed to deed over to the Hawaii community development authority the lands covered by the fifteen leases in the Banyan Drive resort area, including the ten leases covering three resort facilities (Naniloa Volcanoes Resort, Hilo Bay Hotel, and Hilo Hawaiian Hotel), three leases for each of three apartment or condominium facilities (Country Club Hawaii Condo Hotel, Bayview Banyan, and Reed's Bay Resort Hotel), one golf course lease, and one restaurant lease.

SECTION 4. (a) The powers, functions, and duties of the department of land and natural resources relating to the fifteen leases in the Banyan Drive resort area are transferred to the Hawaii community development authority.

(b) All deeds, leases, contracts, loans, agreements, permits, or other documents executed or entered into by on behalf of the department of land and natural resources pursuant to the provisions of the Hawaii Revised Statutes, which are reenacted or made applicable to the Hawaii community development authority by this Act shall remain in full force and effect. Effective July 1, 2011, every reference to the department of land and natural resources or the board of land and natural resources shall be construed as a reference to the Hawaii community development authority.

SECTION 5. 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 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect on July 1, 2011.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	1415
TWENTY-SIXTH LEGISLATURE, 2011
STATE OF HAWAII