Hawaii 2025 Regular Session

Hawaii Senate Bill SB1087 Compare Versions

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11 THE SENATE S.B. NO. 1087 THIRTY-THIRD LEGISLATURE, 2025 STATE OF HAWAII A BILL FOR AN ACT RELATING TO AN AIRPORTS CORPORATION. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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4747 SECTION 1. The legislature finds that the well-being of the State is substantially dependent on the efficient administration, development, management, and operation of its airports and air transportation infrastructure. The legislature further finds that responsibility for Hawaii's airport planning, management, marketing, and capital development functions is currently distributed among a number of agencies, including the department of transportation's airports division; Hawaii tourism authority; department of budget and finance; department of human resources development; board of land and natural resources; department of health, with respect to environmental concerns; and office of Hawaiian affairs, with respect to ceded land issues; among others. Distributed responsibility and involvement by multiple agencies, which sometimes have conflicting goals and priorities, results in inefficiency, delayed decision-making, and reduced effectiveness. The legislature believes that coordinated planning and development of the State's air transportation system and infrastructure will be achieved more effectively by establishing and giving a separate state entity overall jurisdiction and responsibility for aeronautics and the State's airports. The legislature further finds that the establishment of a separate airports corporation will assist in the achievement of the following important statewide objectives: (1) Maximizing the contribution of the State's airports to Hawaii's economy; (2) Ensuring dedicated expert airport leadership, management continuity, and year-round decision-making, consistent with industry best practices; (3) Improving administrative efficiency by streamlining administrative processes; (4) Accelerating the planning and implementation of the state airports' capital improvement programs; (5) Increasing the financial flexibility and strength of the State's airports; (6) Increasing economic opportunities for the State, in collaboration with the Hawaii tourism authority; (7) Increasing responsiveness to consumer needs, commercial opportunities, and economic demands; and (8) Maximizing job creation within the State. In addition, the management and administration of scarce and increasingly valuable airport resources is most effectively served by a separate airports corporation. The purpose of this Act is to establish the Hawaii airports corporation, which shall assume all of the authority, powers, functions, duties, and responsibilities of the department of transportation related to aeronautics and airports, including responsibility for the development, management, operation, and maintenance of the State's airports, on and after the transfer completion date announced by the Hawaii airports corporation pursuant to section 18(b) of this Act. SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows: "Chapter hawaii airports corporation part i. general provisions § -1 Definitions. As used in this chapter: "Aircraft" shall have the same meaning as defined in section 261-1. "Air navigation facility" shall have the same meaning as defined in section 261-1. "Airport" shall have the same meaning as defined in section 261-1. "Airport revenue" means all moneys paid into the airport revenue fund pursuant to section 261-5(a). "Airports corporation" or "corporation" means the Hawaii airports corporation established by this chapter. "Chief executive officer" means the chief executive officer of the Hawaii airports corporation. "Project labor agreement" means a pre-hire collective bargaining agreement with labor organizations that establishes the terms and conditions of employment for a specific construction project; sets forth effective, immediate, and mutually binding procedures for resolving jurisdictional labor disputes and labor grievances; contains guarantees against strikes, lockouts, or similar actions; and permits the selection of the lowest qualified responsible bidder, without regard to union or non-union status at other construction sites. § -2 Airports corporation; establishment; board; members; chief executive officer. (a) There is established the Hawaii airports corporation to: (1) Develop and implement management structures, policies, and procedures based on airport industry best practices; (2) Efficiently develop, manage, operate, and maintain the State's airports and aeronautical facilities; and (3) Administer the provisions of chapters 102, 261, 261D, and 262 that are applicable to airports and aeronautical facilities. The corporation shall be a body politic and corporate, and an instrumentality and agency of the State, placed within the department of transportation for administrative purposes only, and shall enjoy the same sovereign immunity available to the State. The corporation shall not be subject to supervision by the department of transportation or its director and shall be exempt from section 26-35(a)(1), (4), (5), and (6). (b) The powers of the airports corporation shall be vested in and exercised by a board of directors that shall consist of nine voting members; provided that: (1) The members shall be appointed by the governor as provided in section 26-34, except as provided by this section; (2) The members shall include at least one resident each from the city and county of Honolulu and the counties of Hawaii, Kauai, and Maui; (3) Two members shall be appointed by the governor from a list of names submitted for each appointment by the president of the senate, and two members shall be appointed by the governor from a list of names submitted for each appointment by the speaker of the house of representatives; provided that each list of names shall contain at least three names and shall include two names that qualify to fill any county-specific vacancy, as appropriate; and (4) Notwithstanding the state residency provisions of section 78-1(b), there shall be not more than two members who are non-residents of the State on the board at any time. Notwithstanding section 26-34, appointments to the board shall not be subject to the advice and consent of the senate. (c) Members shall have relevant business, management, and procurement experience, including experience in one or more of the following disciplines: financial planning, budgeting, hospitality, tourism, commercial development, construction, marketing, law, aviation, non-aviation airport business, or the cultural traditions and practices of Native Hawaiians. It is the intent of the legislature that there shall be, as far as practicable, a wide cross-section of these disciplines represented by the board. (d) Members shall be appointed by the governor for terms of four years. Notwithstanding section 26-34(a) and (b), all members of the board shall continue in office until their respective successors have been appointed; provided that no member shall serve more than eight consecutive years. (e) No board member appointed under this section shall be an officer or employee of the State or a county. (f) Each board member shall serve without compensation, but shall be reimbursed for necessary expenses, including travel expenses, incurred in the performance of their duties. (g) The board of directors of the airports corporation shall appoint a single executive to be known as the chief executive officer of the Hawaii airports corporation, who shall: (1) Not be a member of the board; (2) Be exempt from chapters 76 and 89; and (3) Receive a salary fixed by the board. (h) The chief executive officer: (1) Shall be selected based on criteria approved by the board, including experience in airport management at an executive level at a large-hub or medium-hub airport within the United States, management of large-scale capital programs, and domestic and international air service development; (2) Shall be appointed by an affirmative vote of not less than five members of the board; (3) Shall be employed subject to a formal contract, the terms of which shall be approved by the board; provided that the terms shall include provisions for the removal of the chief executive officer whether with or without cause; (4) May be removed from office only by a vote of not less than five members of the board; provided that the basis for removal is consistent with the terms of the chief executive officer's employment contract; (5) Shall have the powers as described in this chapter and the provisions of chapters 102, 261, 261D, and 262 that are applicable to airports and aeronautical facilities, as may be delegated by the board; (6) Shall, except when excused by the board, attend all meetings of the board, keep a record of the proceedings, and maintain and be the custodian of the official seal of the corporation and all books, records, documents, and papers filed with the corporation; (7) Shall direct and supervise the corporation's administrative and operational affairs in accordance with the directives of the board; (8) Shall approve all accounts for salaries and allowable expenses of the corporation; and (9) Shall do all things necessary, as directed by the board, to carry out the powers and duties conferred upon the corporation by this chapter and the provisions of chapters 102, 261, 261D, and 262 that are applicable to airports and aeronautical facilities. (i) Upon the vacancy of the position of the chief executive officer, the board of directors shall designate a deputy executive officer or other employee of the corporation to serve as the chief executive officer of the corporation until the vacancy is filled by the board. This interim chief executive officer shall have all of the powers and responsibilities, and receive the salary, of the chief executive officer. (j) The number of members of the board necessary to constitute a quorum to do business shall be five members, and unless specified elsewhere in this chapter, the concurrence of five members of the board shall be necessary to make any action of the board valid. § -3 Powers; generally. (a) The Hawaii airports corporation, by and through its board of directors: (1) Shall exercise power and control over all airports, air navigation facilities, buildings, and other facilities that the corporation is responsible for managing, operating, or controlling under this chapter and the provisions of chapters 102, 261, 261D, and 262 that are applicable to airports and aeronautical facilities; (2) Shall provide as appropriate for the landing, taking-off, and servicing of aircraft, and the loading and unloading of passengers and cargo at all airports under the control of the corporation; (3) Shall establish performance targets and performance standards for all state airports to achieve the highest levels of customer service; (4) Shall ensure that appropriate mission statements, business plans, minimum development standards, and strategic goals are established and that progress towards their accomplishment is regularly assessed and reported; (5) Shall develop an organization and management structure to best accomplish the goals of the Hawaii airport system and the corporation; (6) Shall be subject to the provisions of chapter 103D and chapter 104; provided that any offeror of food and beverage or retail concession services shall have an agreement with any labor organization which represents airport terminal concession employees in this State that is valid and enforceable under title 29 United States Code, section 185(a) and that prohibits any strikes, picketing, or other economic interference with the business of the offeror for the duration of the offeror's contract to operate the concession, including renewal or extension, and binds any successors to an original offeror; provided further that any contractor furnishing construction work on any airport, air navigation facility, building, or other facility that the corporation is responsible for managing, operating, or controlling, including construction work undertaken in or on buildings or land owned or leased from the corporation, shall enter into a project labor agreement; (7) Shall have an official seal and may alter the official seal at its pleasure; (8) May make, execute, or assume contracts, leases, and all other instruments necessary or convenient for the exercise of its powers and functions under this chapter and the provisions of chapters 102, 261, 261D, and 262 that are applicable to airports and aeronautical facilities; (9) Shall establish bylaws for its organization and internal management; (10) Shall adopt rules pursuant to chapter 91 as necessary to implement this chapter and the provisions of chapters 102, 261, 261D, and 262 that are applicable to airports and aeronautical facilities; (11) Shall prepare and adopt the corporation's operating and capital improvement budgets; (12) May own, purchase, lease, exchange, or otherwise acquire property, whether real, personal, or mixed, tangible or intangible, and any interest therein, in the name of the corporation, and may assign, exchange, transfer, convey, lease, sublease, or encumber the same or any project, improvement, or facility related thereto; provided that the lands to which the corporation holds title shall not be subject to chapter 171; provided further that any sale, gift, or exchange of real property shall be subject to the terms, conditions, and restrictions applicable to the sale, gift, or exchange of public lands in section 171-50 and 171-64.7; provided further that any lease, sublease, permit, or other encumbrance for any real property shall be issued in accordance with administrative rules adopted by the corporation pursuant to chapter 91; (13) May procure insurance against any loss in connection with its property and other assets and operations, in amounts and from insurers as it deems desirable; or provide for self-insurance; (14) May accept and receive gifts or grants in any form from any person, public entity, or source; provided that the grants and gifts shall be used for airports corporation purposes; (15) Shall take all actions necessary under emergencies declared by the governor; (16) Shall assume from the department of transportation: (A) That: (i) Certain Certificate of the Director of Transportation Providing for the Issuance of State of Hawaii Airports System Revenue Bonds dated as of May 1, 1969, relating to certain revenue bonds and other obligations; (ii) Certain Indenture of Trust dated as of December 1, 2013, between the department of transportation and U.S. Bank National Association relating to certain certificates of participation; and (iii) Certain Indenture of Trust dated as of August 1, 2014, between the department of transportation and MUFG Union Bank, N.A., relating to certain customer facility charge revenue bonds, each as supplemented and amended to date; and (B) The bonds, notes, and other obligations of the department of transportation outstanding under, as well as the covenants, restrictions, and other requirements set forth in, those documents; (17) Shall adopt policies and procedures designed to ensure continuing compliance with the terms of the documents in paragraph (16) for so long as they are applicable; (18) Shall fix, impose, prescribe, and collect rates, rentals, fees, or charges for the lease, use, and services of its airport facilities at least sufficient to pay the costs of operation, maintenance, and repair, if any, and the required payments of the principal of and interest on all bonds, notes, or other obligations issued or assumed by the airports corporation and reserves therefor; provided that the rates, rentals, fees, or charges are established at an open meeting subject to the requirements of chapter 92; (19) Subject to the provisions of the documents assumed by the corporation under paragraph (16)(A), may allot any and all airport revenue and issue revenue bonds, refunding revenue bonds, special facility revenue bonds, bond anticipation notes, and other lawfully authorized obligations of the State in its name and secured by the revenue, or user taxes, or any combination of both, of an undertaking or loan program pursuant to chapter 39, but not in excess of the principal amounts as are necessary for its purposes; (20) May invest and secure its moneys; (21) May exercise the power of eminent domain pursuant to chapter 101 and in accordance with sections 261-31 to 261-36, to acquire real property for the corporation with which to carry out this chapter and the provisions of chapters 102, 261, 261D, or 262 that are applicable to airports and aeronautical facilities; (22) Shall establish and maintain an appropriate system of accounts for the corporation; and (23) May do any and all things necessary to exercise the powers and perform the duties conferred upon the corporation by this chapter and the provisions of chapters 102, 261, 261D, and 262 that are applicable to airports and aeronautical facilities. (b) The corporation shall not be subject to chapters 36, 37, 37D, 38, and 40, except for section 36-28.5 and as otherwise provided in this chapter and chapter 261. (c) The airports corporation may sue and be sued in its corporate name. Notwithstanding any other law to the contrary, all claims arising out of the acts or omissions of the airports corporation or the members of its board, its officers, or its employees, including claims permitted against the State under chapter 661, part I, and claims for torts permitted against the State under chapter 662, may be brought only pursuant to this section and only against the airports corporation. However, the airports corporation shall be subject to suit only in the manner provided for suits against the State, including section 661-11. All defenses available to the State, as well as all limitations on actions against the State, shall be applicable to the airports corporation. The board of directors, upon the advice of its attorney, may arbitrate, compromise, or settle any claim, action, or suit brought against the airports corporation pursuant to this section. Any claim compromised or settled under this subsection shall be payable solely from the moneys and property of the airports corporation and shall not constitute a general obligation of the State or be secured directly or indirectly by the full faith and credit of the State or the general credit of the State or by any revenue or taxes of the State. Nothing in this subsection shall preclude the board of directors from requesting legislative appropriations to fund the settlement of any claim or judgment against the airports corporation or its officers, employees, or agents. Rights and remedies conferred by this section shall not be construed to authorize any other claim, suit, or action against the State. In addition, a judgment, compromise, or settlement in an action brought against the airports corporation under this section shall constitute a complete bar to any action brought by the claimant, by reason of the same subject matter, against the State or an officer or employee of the airports corporation. (d) The corporation shall be a "jurisdiction" and an "appointing authority" under chapter 76 and an "appointing authority" and an "appropriate authority" for those of its officers and employees who are excluded employees under chapter 89C. In addition to its chief executive officer, the corporation may employ executive officers, including a chief procurement officer, appointed by the chief executive officer who are qualified to fill positions established in the bylaws of the corporation adopted by the board of directors, to perform functions and exercise powers assigned by the bylaws or delegated by the board or the chief executive officer. The other executive officers of the corporation, and up to additional specially qualified employees appointed by the chief executive officer shall be exempt from chapters 76 and 89. All other persons employed by the corporation shall be subject to chapters 76 and 89, and rules adopted to implement those provisions, unless expressly exempted from the civil service under chapter 76 or excluded from collective bargaining under chapter 89. The officers and personnel of the corporation shall be included in all benefit programs applicable to officers and employees of the State. (e) The corporation and its corporate existence shall continue until terminated by law; provided that no termination shall take effect as long as bonds or other obligations issued or assumed by the corporation are outstanding, unless adequate provision has been made for the payment or satisfaction thereof. Upon termination of the existence of the corporation, all of the rights and properties of the corporation then remaining shall pass to and vest in the State in the manner prescribed by law. part iI. BUDGET AND FINANCE § -11 Exemptions. The airport revenue fund, passenger facility charge special fund, and rental motor vehicle customer facility charge special fund shall be exempt from chapters 36, 37, 37D and 40. § -12 Fiscal provisions. (a) The corporation's board of directors shall establish guidelines for preparing the corporation's annual operating and capital improvement budget proposals that take into account anticipated receipts, surpluses, reserves, and funds from any other source, on deposit in or available for deposit into the airport revenue fund, the passenger facility charge special fund, the rental motor vehicle customer facility charge special fund, or any other special or revolving fund that the legislature may establish for the corporation. (b) The corporation shall submit its biennium and supplemental operating and capital improvement budget proposals to the department of transportation, which shall transmit those budget proposals to the governor. (c) Along with its budget proposals, the corporation shall provide an annual report of the income to and the expenditures from the airport revenue fund, the passenger facility charge special fund, the rental motor vehicle customer facility charge special fund, and any other special or revolving fund administered by the corporation. The corporation shall provide a copy of its annual report to the legislature at least twenty days prior to the convening of each regular session. (d) The supporting documents for each budget proposal shall include the annual report, but need not include any other information, except when state general funds are requested. § -13 Budget oversight. The corporation's operating and capital improvement budgets shall be subject to review or approval by the governor or any agency of the executive branch, except where state general funds are requested. § -14 Accounts; depositories. (a) Appropriations for the corporation shall not be subject to any allotment system or requirements. The director of finance shall notify the corporation and comptroller that all of the appropriations for the corporation for the fiscal year have been allotted and are available for expenditure as soon as possible, and in no event more than three business days, after the general or supplemental appropriations act is effective. (b) Moneys in the airport revenue fund, passenger facility charge special fund, and rental motor vehicle customer facility charge special fund may be deposited in depositories other than the state treasury; provided that the airports corporation consults with the director of finance before selecting the depository for the corporation's funds, and submits copies of annual statements from each of the depositories in which the moneys from the funds are deposited. § -15 Expenditures in excess of appropriations. If in any fiscal year the amount of revenues deposited into the airport revenue fund exceeds the amount appropriated from that fund for that year, the board of directors of the corporation may approve expenditures in excess of the amount appropriated, up to the amount by which revenues for that fund exceed the appropriations from that fund for a fiscal year. § -16 Issuance of bonds. On an annual basis, and upon request of the corporation, the legislature may authorize one lump sum for each means or source of funds for each of the following types of bonds to be issued by the corporation: revenue bonds, refunding revenue bonds, and special facility revenue bonds. § -17 Audits. The state auditor shall conduct management and financial audits of the corporation for fiscal year 2026 and every second year thereafter. § -18 Rate-setting; methodology. The corporation shall use the residual method when determining overall costs and assigning rates and charges." SECTION 3. Section 26-19, Hawaii Revised Statutes, is amended to read as follows: "§26-19 Department of transportation. (a) The department of transportation shall be headed by a single executive to be known as the director of transportation. The department shall establish, maintain, and operate transportation facilities of the State, including highways, [airports,] harbors, and any other transportation facilities and activities, other than airports and aeronautics, as may be authorized by law. (b) The department shall plan, develop, promote, and coordinate various transportation systems management programs that shall include but not be limited to alternate work and school hours programs, bicycling programs, and ridesharing programs. (c) The department shall develop and promote ridesharing programs that shall include but not be limited to carpool and vanpool programs, and may assist organizations interested in promoting similar programs, arrange for contracts with private organizations to manage and operate these programs, and assist in the formulation of ridesharing arrangements. Ridesharing programs include informal arrangements in which two or more persons ride together in a motor vehicle. [(d) The functions and authority heretofore exercised by the department of public works with respect to highways are transferred to the department of transportation established by this chapter. (e) On July 1, 1961, the Hawaii aeronautics commission, the board of harbor commissioners and the highway commission shall be abolished and their remaining functions, duties, and powers shall be transferred to the department of transportation.]" SECTION 4. Section 28-8.3, Hawaii Revised Statutes, is amended as follows: 1. By amending subsection (a) to read: "(a) No department of the State other than the attorney general may employ or retain any attorney, by contract or otherwise, for the purpose of representing the State or the department in any litigation, rendering legal counsel to the department, or drafting legal documents for the department; provided that the foregoing provision shall not apply to the employment or retention of attorneys: (1) By the public utilities commission, the labor and industrial relations appeals board, and the Hawaii labor relations board; (2) By any court or judicial or legislative office of the State; provided that if the attorney general is requested to provide representation to a court or judicial office by the chief justice or the chief justice's designee, or to a legislative office by the speaker of the house of representatives and the president of the senate jointly, and the attorney general declines to provide [such] representation on the grounds of conflict of interest, the attorney general shall retain an attorney for the court, judicial, or legislative office, subject to approval by the court, judicial, or legislative office; (3) By the legislative reference bureau; (4) By any compilation commission that may be constituted from time to time; (5) By the real estate commission for any action involving the real estate recovery fund; (6) By the contractors license board for any action involving the contractors recovery fund; (7) By the office of Hawaiian affairs; (8) By the department of commerce and consumer affairs for the enforcement of violations of chapters 480 and 485A; (9) As grand jury counsel; (10) By the Hawaii health systems corporation, or its regional system boards, or any of their facilities; (11) By the auditor; (12) By the office of ombudsman; (13) By the insurance division; (14) By the [University] university of Hawaii; (15) By the Kahoolawe island reserve commission; (16) By the division of consumer advocacy; (17) By the office of elections; (18) By the campaign spending commission; (19) By the Hawaii tourism authority, as provided in section 201B-2.5; (20) By the division of financial institutions; (21) By the office of information practices; (22) By the school facilities authority; (23) By the Mauna Kea stewardship and oversight authority; [or] (24) By the Hawaii airports corporation; or [(24)] (25) By a department, if the attorney general, for reasons deemed by the attorney general to be good and sufficient, declines to employ or retain an attorney for a department; provided that the governor waives the provision of this section." 2. By amending subsection (c) to read: "(c) Every attorney employed by any department on a full-time basis, except an attorney employed by the public utilities commission, the labor and industrial relations appeals board, the Hawaii labor relations board, the office of Hawaiian affairs, the Hawaii health systems corporation or its regional system boards, the department of commerce and consumer affairs in prosecution of consumer complaints, insurance division, the division of consumer advocacy, the [University] university of Hawaii, the Hawaii tourism authority as provided in section 201B-2.5, the Mauna Kea stewardship and oversight authority, the office of information practices, the Hawaii airports corporation, or as grand jury counsel, shall be a deputy attorney general." SECTION 5. Section 36-27, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows: "(a) Except as provided in this section, and notwithstanding any other law to the contrary, from time to time, the director of finance, for the purpose of defraying the prorated estimate of central service expenses of government in relation to all special funds, except the: (1) Special out-of-school time instructional program fund under section 302A-1310; (2) School cafeteria special funds of the department of education; (3) Special funds of the [University] university of Hawaii; (4) Convention center enterprise special fund under section 201B-8; (5) Special funds established by section 206E-6; (6) Aloha Tower fund created by section 206J-17; (7) Funds of the employees' retirement system created by section 88-109; (8) Hawaii hurricane relief fund established under chapter 431P; (9) Hawaii health systems corporation special funds and the subaccounts of its regional system boards; (10) Universal service fund established under section 269‑42; (11) Emergency and budget reserve fund under section 328L‑3; (12) Public schools special fees and charges fund under section 302A-1130; (13) Sport fish special fund under section 187A-9.5; (14) Neurotrauma special fund under section 321H-4; (15) Glass advance disposal fee established by section 342G-82; (16) Center for nursing special fund under section 304A‑2163; (17) Passenger facility charge special fund established by section 261-5.5; (18) Solicitation of funds for charitable purposes special fund established by section 467B-15; (19) Land conservation fund established by section 173A-5; (20) Court interpreting services revolving fund under section 607-1.5; (21) Trauma system special fund under section 321-22.5; (22) Hawaii cancer research special fund; (23) Community health centers special fund; (24) Emergency medical services special fund; (25) Rental motor vehicle customer facility charge special fund established under section 261-5.6; (26) Shared services technology special fund under section 27-43; (27) Automated victim information and notification system special fund established under section 353-136; (28) Deposit beverage container deposit special fund under section 342G-104; (29) Hospital sustainability program special fund under section 346G-4; (30) Nursing facility sustainability program special fund under section 346F-4; (31) Hawaii 3R's school improvement fund under section 302A-1502.4; (32) After-school plus program revolving fund under section 302A-1149.5; (33) Civil monetary penalty special fund under section 321‑30.2; [and [](34)[]]Stadium development special fund under section 109‑3.5[,]; and (35) Airport revenue fund, shall deduct five per cent of all receipts of all other special funds, which deduction shall be transferred to the general fund of the State and become general realizations of the State. All officers of the State and other persons having power to allocate or disburse any special funds shall cooperate with the director in effecting these transfers. To determine the proper revenue base upon which the central service assessment is to be calculated, the director shall adopt rules pursuant to chapter 91 for the purpose of suspending or limiting the application of the central service assessment of any fund. No later than twenty days prior to the convening of each regular session of the legislature, the director shall report all central service assessments made during the preceding fiscal year." SECTION 6. Section 36-30, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows: "(a) Each special fund, except the: (1) Special out-of-school time instructional program fund under section 302A-1310; (2) School cafeteria special funds of the department of education; (3) Special funds of the [University] university of Hawaii; (4) Special funds established by section 206E-6; (5) Aloha Tower fund created by section 206J-17; (6) Funds of the employees' retirement system created by section 88-109; (7) Hawaii hurricane relief fund established under chapter 431P; (8) Convention center enterprise special fund established under section 201B-8; (9) Hawaii health systems corporation special funds and the subaccounts of its regional system boards; (10) Universal service fund established under section 269‑42; (11) Emergency and budget reserve fund under section 328L‑3; (12) Public schools special fees and charges fund under section 302A-1130; (13) Sport fish special fund under section 187A-9.5; (14) Neurotrauma special fund under section 321H-4; (15) Center for nursing special fund under section 304A‑2163; (16) Passenger facility charge special fund established by section 261-5.5; (17) Court interpreting services revolving fund under section 607-1.5; (18) Trauma system special fund under section 321-22.5; (19) Hawaii cancer research special fund; (20) Community health centers special fund; (21) Emergency medical services special fund; (22) Rental motor vehicle customer facility charge special fund established under section 261-5.6; (23) Shared services technology special fund under section 27-43; (24) Nursing facility sustainability program special fund established pursuant to section 346F-4; (25) Automated victim information and notification system special fund established under section 353-136; (26) Hospital sustainability program special fund under section 346G-4; (27) Civil monetary penalty special fund under section 321‑30.2; [and [](28)[]]Stadium development special fund under section 109‑3.5[,]; and (29) Airport revenue fund; shall be responsible for its pro rata share of the administrative expenses incurred by the department responsible for the operations supported by the special fund concerned." SECTION 7. Section 41D-2, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows: "(b) Any provision in this section to the contrary notwithstanding, the Hawaii airports corporation, the [University] university of Hawaii (as to casualty insurance risks only), the Research Corporation of the University of Hawaii (as to casualty insurance risks only), the public health facilities of the department of health (with respect to medical malpractice risks only), and the Hawaii health systems corporation and its regional system boards shall be exempt from the requirements of this chapter." SECTION 8. Section 76-11, Hawaii Revised Statutes, is amended by amending the definition of "jurisdiction" to read as follows: ""Jurisdiction" means the State, the city and county of Honolulu, the county of Hawaii, the county of Maui, the county of Kauai, the judiciary, the department of education, the [University] university of Hawaii, the Hawaii airports corporation, and the Hawaii health systems corporation." SECTION 9. Section 76-16, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows: "(b) The civil service to which this chapter applies shall comprise all positions in the State now existing or hereafter established and embrace all personal services performed for the State, except the following: (1) Commissioned and enlisted personnel of the Hawaii National Guard and positions in the Hawaii National Guard that are required by state or federal laws or regulations or orders of the National Guard to be filled from those commissioned or enlisted personnel; (2) Positions filled by persons employed by contract where the director of human resources development has certified that the service is special or unique or is essential to the public interest and that, because of circumstances surrounding its fulfillment, personnel to perform the service cannot be obtained through normal civil service recruitment procedures. Any contract may be for any period not exceeding one year; (3) Positions that must be filled without delay to comply with a court order or decree if the director determines that recruitment through normal recruitment civil service procedures would result in delay or noncompliance, such as the Felix-Cayetano consent decree; (4) Positions filled by the legislature or by either house or any committee thereof; (5) Employees in the office of the governor and office of the lieutenant governor, and household employees at Washington Place; (6) Positions filled by popular vote; (7) Department heads, officers, and members of any board, commission, or other state agency whose appointments are made by the governor or are required by law to be confirmed by the senate; (8) Judges, referees, receivers, masters, jurors, notaries public, land court examiners, court commissioners, and attorneys appointed by a state court for a special temporary service; (9) One bailiff for the chief justice of the supreme court who shall have the powers and duties of a court officer and bailiff under section 606-14; one secretary or clerk for each justice of the supreme court, each judge of the intermediate appellate court, and each judge of the circuit court; one secretary for the judicial council; one deputy administrative director of the courts; three law clerks for the chief justice of the supreme court, two law clerks for each associate justice of the supreme court and each judge of the intermediate appellate court, one law clerk for each judge of the circuit court, two additional law clerks for the civil administrative judge of the circuit court of the first circuit, two additional law clerks for the criminal administrative judge of the circuit court of the first circuit, one additional law clerk for the senior judge of the family court of the first circuit, two additional law clerks for the civil motions judge of the circuit court of the first circuit, two additional law clerks for the criminal motions judge of the circuit court of the first circuit, and two law clerks for the administrative judge of the district court of the first circuit; and one private secretary for the administrative director of the courts, the deputy administrative director of the courts, each department head, each deputy or first assistant, and each additional deputy, or assistant deputy, or assistant defined in paragraph (16); (10) First deputy and deputy attorneys general, the administrative services manager of the department of the attorney general, one secretary for the administrative services manager, an administrator and any support staff for the criminal and juvenile justice resources coordination functions, and law clerks; (11) (A) Teachers, principals, vice-principals, complex area superintendents, deputy and assistant superintendents, other certificated personnel, and [no] not more than twenty noncertificated administrative, professional, and technical personnel not engaged in instructional work; (B) Effective July 1, 2003, teaching assistants, educational assistants, bilingual or bicultural school-home assistants, school psychologists, psychological examiners, speech pathologists, athletic health care trainers, alternative school work study assistants, alternative school educational or supportive services specialists, alternative school project coordinators, and communications aides in the department of education; (C) The special assistant to the state librarian and one secretary for the special assistant to the state librarian; and (D) Members of the faculty of the [University] university of Hawaii, including research workers, extension agents, personnel engaged in instructional work, and administrative, professional, and technical personnel of the university; (12) Employees engaged in special, research, or demonstration projects approved by the governor; (13) (A) Positions filled by inmates, patients of state institutions, and persons with severe physical or mental disabilities participating in the work experience training programs; (B) Positions filled with students in accordance with guidelines for established state employment programs; and (C) Positions that provide work experience training or temporary public service employment that are filled by persons entering the workforce or persons transitioning into other careers under programs such as the federal Workforce Investment Act of 1998, as amended, or the Senior Community Service Employment Program of the Employment and Training Administration of the United States Department of Labor, or under other similar state programs; (14) A custodian or guide at Iolani Palace, the Royal Mausoleum, and Hulihee Palace; (15) Positions filled by persons employed on a fee, contract, or piecework basis, who may lawfully perform their duties concurrently with their private business or profession or other private employment and whose duties require only a portion of their time, if it is impracticable to ascertain or anticipate the portion of time to be devoted to the service of the State; (16) Positions of first deputies or first assistants of each department head appointed under or in the manner provided in section 6, article V, of the Hawaii State Constitution; [three] two additional deputies or assistants either in charge of the highways[,] and harbors[, and airports] divisions or other functions within the department of transportation as may be assigned by the director of transportation, with the approval of the governor; one additional deputy in the department of human services either in charge of welfare or other functions within the department as may be assigned by the director of human services; four additional deputies in the department of health, each in charge of one of the following: behavioral health, environmental health, hospitals, and health resources administration, including other functions within the department as may be assigned by the director of health, with the approval of the governor; two additional deputies in charge of the law enforcement programs, administration, or other functions within the department of law enforcement as may be assigned by the director of law enforcement, with the approval of the governor; three additional deputies each in charge of the correctional institutions, rehabilitation services and programs, and administration or other functions within the department of corrections and rehabilitation as may be assigned by the director of corrections and rehabilitation, with the approval of the governor; two administrative assistants to the state librarian; and an administrative assistant to the superintendent of education; (17) Positions specifically exempted from this part by any other law; provided that: (A) Any exemption created after July 1, 2014, shall expire three years after its enactment unless affirmatively extended by an act of the legislature; and (B) All of the positions defined by paragraph (9) shall be included in the position classification plan; (18) Positions in the state foster grandparent program and positions for temporary employment of senior citizens in occupations in which there is a severe personnel shortage or in special projects; (19) Household employees at the official residence of the president of the [University] university of Hawaii; (20) Employees in the department of education engaged in the supervision of students during meal periods in the distribution, collection, and counting of meal tickets, and in the cleaning of classrooms after school hours on a less than half-time basis; (21) Employees hired under the tenant hire program of the Hawaii public housing authority; provided that no more than twenty-six per cent of the authority's workforce in any housing project maintained or operated by the authority shall be hired under the tenant hire program; (22) Positions of the federally funded expanded food and nutrition program of the [University] university of Hawaii that require the hiring of nutrition program assistants who live in the areas they serve; (23) Positions filled by persons with severe disabilities who are certified by the state vocational rehabilitation office that they are able to perform safely the duties of the positions; (24) The sheriff; (25) A gender and other fairness coordinator hired by the judiciary; (26) Positions in the Hawaii National Guard youth and adult education programs; (27) In the Hawaii state energy office in the department of business, economic development, and tourism, all energy program managers, energy program specialists, energy program assistants, and energy analysts; (28) Administrative appeals hearing officers in the department of human services; (29) In the Med-QUEST division of the department of human services, the division administrator, finance officer, health care services branch administrator, medical director, and clinical standards administrator; (30) In the director's office of the department of human services, the enterprise officer, information security and privacy compliance officer, security and privacy compliance engineer, security and privacy compliance analyst, information technology implementation manager, assistant information technology implementation manager, resource manager, community or project development director, policy director, special assistant to the director, and limited English proficiency project manager or coordinator; (31) The Alzheimer's disease and related dementia services coordinator in the executive office on aging; (32) In the Hawaii emergency management agency, the executive officer, public information officer, civil defense administrative officer, branch chiefs, and emergency operations center state warning point personnel; provided that for state warning point personnel, the director shall determine that recruitment through normal civil service recruitment procedures would result in delay or noncompliance; (33) The executive director and seven full-time administrative positions of the school facilities authority; (34) Positions in the Mauna Kea stewardship and oversight authority; (35) In the office of homeland security of the department of law enforcement, the statewide interoperable communications coordinator; (36) In the social services division of the department of human services, the business technology analyst; (37) The executive director and staff of the 911 board; [[](38)[]]Senior software developers in the department of taxation; [[](39)[]]In the department of law enforcement, five Commission on Accreditation for Law Enforcement Agencies, Inc., coordinator positions; [[](40)[]]The state fire marshal; [and [](41)[]]The administrator for the law enforcement standards board[.]; and (42) The chief executive officer of the Hawaii airports corporation, all other executive officers the chief executive officer may appoint pursuant to section ‑3(d), and positions that the chief executive officer is authorized to fill by appointing specially qualified personnel pursuant to section ‑3(d). The director shall determine the applicability of this section to specific positions. Nothing in this section shall be deemed to affect the civil service status of any incumbent as it existed on July 1, 1955." SECTION 10. Section 84-17, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows: "(d) The financial disclosure statements of the following persons shall be public records and available for inspection and duplication: (1) The governor, lieutenant governor, members of the legislature, candidates for and delegates to the constitutional convention, trustees of the office of Hawaiian affairs, and candidates for state elective offices; (2) The directors of the state departments and their deputies, regardless of the titles by which the foregoing persons are designated; provided that with respect to the department of the attorney general, the foregoing shall apply only to the attorney general and the first deputy attorney general; (3) The administrative director of the State; (4) The president, vice presidents, assistant vice presidents, chancellors, members of the board of regents, and provosts of the [University] university of Hawaii; (5) The members of the board of education, superintendent, deputy superintendent, state librarian, and deputy state librarian of the department of education; (6) The administrative director and deputy director of the courts; (7) The administrator and assistant administrator of the office of Hawaiian affairs; and (8) The members of the following state boards, commissions, and agencies: (A) The board of directors of the agribusiness development corporation established under section 163D-3; (B) The board of agriculture established under section 26-16; (C) The state ethics commission established under section 84-21; (D) The Hawaii community development authority established under section 206E-3; (E) The Hawaiian homes commission established under the Hawaiian Homes Commission Act of 1920, as amended, and section 26-17; (F) The board of directors of the Hawaii housing finance and development corporation established under section 201H-3; (G) The board of land and natural resources established under section 171-4; (H) The state land use commission established under section 205-1; (I) The legacy land conservation commission established under section 173A-2.4; (J) The natural area reserves system commission established under section 195-6; (K) The board of directors of the natural energy laboratory of Hawaii authority established under section 227D-2; (L) The board of directors of the Hawaii public housing authority established under section 356D‑3; (M) The public utilities commission established under section 269-2; (N) The commission on water resource management established under section 174C-7; [and] (O) The stadium authority established under section 109-1[.]; and (P) The board of directors and chief executive officer of the Hawaii airports corporation established under section -2." SECTION 11. Section 89C-1.5, Hawaii Revised Statutes, is amended by amending the definition of "appropriate authority" to read as follows: ""Appropriate authority" means the governor, the respective mayors, the chief justice of the supreme court, the board of education, the board of regents, the state public charter school commission, the Hawaii health systems corporation board, the auditor, the ombudsman, the board of directors of the Hawaii airports corporation, and the director of the legislative reference bureau. These individuals or boards may make adjustments for their respective excluded employees." SECTION 12. Section 171-2, Hawaii Revised Statutes, is amended to read as follows: "§171-2 Definition of public lands. "Public lands" means all lands or interest therein in the State classed as government or crown lands previous to August 15, 1895, or acquired or reserved by the government upon or subsequent to that date by purchase, exchange, escheat, or the exercise of the right of eminent domain, or in any other manner; including lands accreted after May 20, 2003, and not otherwise awarded, submerged lands, and lands beneath tidal waters that are suitable for reclamation, together with reclaimed lands that have been given the status of public lands under this chapter, except: (1) Lands designated in section 203 of the Hawaiian Homes Commission Act, 1920, as amended; (2) Lands set aside pursuant to law for the use of the United States; (3) Lands being used for roads and streets; (4) Lands to which the United States relinquished the absolute fee and ownership under section 91 of the Hawaiian Organic Act before the admission of Hawaii as a state of the United States unless subsequently placed under the control of the board of land and natural resources and given the status of public lands in accordance with the state constitution, the Hawaiian Homes Commission Act, 1920, as amended, or other laws; (5) Lands to which the [University] university of Hawaii holds title; (6) Non-ceded lands set aside by the governor to the Hawaii housing finance and development corporation or lands to which the Hawaii housing finance and development corporation in its corporate capacity holds title; (7) Lands to which the Hawaii community development authority in its corporate capacity holds title; (8) Lands set aside by the governor to the Hawaii public housing authority or lands to which the Hawaii public housing authority in its corporate capacity holds title; (9) Lands to which the department of agriculture holds title by way of foreclosure, voluntary surrender, or otherwise, to recover moneys loaned or to recover debts otherwise owed the department under chapter 167; (10) Lands that are set aside by the governor to the Aloha Tower development corporation, lands leased to the Aloha Tower development corporation by any department or agency of the State, or lands to which the Aloha Tower development corporation holds title in its corporate capacity; (11) Lands that are set aside by the governor to the agribusiness development corporation, lands leased to the agribusiness development corporation by any department or agency of the State, or lands to which the agribusiness development corporation in its corporate capacity holds title; (12) Lands to which the Hawaii technology development corporation in its corporate capacity holds title; (13) Lands to which the department of education holds title; (14) Lands to which the stadium authority holds title; (15) Lands to which the school facilities authority holds title; [and] (16) Lands that are set aside by the governor to the department of transportation, lands leased to the department of transportation by any department or agency of the State, or lands to which the department of transportation holds title; and (17) Lands to which the Hawaii airports corporation holds title; provided that, except as otherwise limited under federal law and except for state land used as an airport as defined in section 262-1, public lands shall include the air rights over any portion of state land upon which a county mass transit project is developed after July 11, 2005; provided further that if the lands pursuant to paragraph (6) are no longer needed for housing finance and development purposes, the lands shall be returned to the agency from which they were obtained; provided further that if the lands pursuant to paragraph (14) are no longer needed for the stadium development district or related purposes, the lands shall be returned to the public land trust administered by the department[.]; provided further that lands to which the Hawaii airports corporation holds title shall be considered "public lands" for the purpose of accounting of all receipts from lands that are described in section 5(f) of the Admission Act, Public Law 86-3, for the prior fiscal year, pursuant to section 5 of Act 178, Session Laws of Hawaii 2006." SECTION 13. Section 261-7, Hawaii Revised Statutes, is amended by adding two new definitions to be appropriately inserted and to read as follows: ""Chief executive officer" means the chief executive officer of the Hawaii airports corporation. "Corporation" means the Hawaii airports corporation." SECTION 14. Section 261-7, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows: "(e) [The department may fix and regulate, from time to time, reasonable landing fees for aircraft, including the imposition of landing surcharges or differential landing fees, and other reasonable charges for the use and enjoyment of the airports and the services and facilities furnished by the department in connection therewith, including the establishment of a statewide system of airports landing fees, a statewide system of airports support charges, and joint use charges for the use of space shared by users, which fees and charges may vary among different classes of users such as foreign carriers, domestic carriers, inter-island carriers, air taxi operators, helicopters, and such other classes as may be determined by the director, for the purpose of meeting the expenditures of the statewide system of airports set forth in section 261-5(a), which includes expenditures for capital improvement projects approved by the legislature.] The corporation shall fix, impose, prescribe, and collect rates, rentals, fees, or charges for the lease, use, and services of its airport facilities in amounts sufficient to pay the costs of the operation, maintenance, and repair, if any, and the required payments of the principal of, and interest on, all bonds issued or assumed by the corporation and reserves therefor. In setting airports rates and charges, including landing fees, the [director] chief executive officer may enter into contracts, leases, licenses, and other agreements with aeronautical users of the statewide system of airports containing such terms, conditions, and provisions as the [director] chief executive officer deems advisable. If the [director] chief executive officer has not entered into contracts, leases, licenses, and other agreements with any or fewer than all of the aeronautical users of the statewide system of airports prior to the expiration of an existing contract, lease, license, or agreement, the [director] chief executive officer shall set and impose rates, rentals, fees, and charges pursuant to this subsection without regard to the requirements of chapter 91; provided that a public informational hearing shall be held on the rates, rentals, fees, and charges. The [director] chief executive officer shall develop rates, rentals, fees, and charges in accordance with a residual methodology so that the statewide system of airports shall be, and always remain, self-sustaining. The rates, rentals, fees, and charges shall be set at [such] levels as to produce revenues [which,] that, together with aviation fuel taxes, shall be at least sufficient to meet the expenditures of the statewide system of airports set forth in section 261-5(a), including expenditures for capital improvement projects approved by the legislature, and to comply with covenants and agreements with holders of airport revenue bonds. The [director] chief executive officer may develop and formulate methodology in setting the various rates, rentals, fees, and charges imposed and may determine usage of space, estimate landed weights, and apply [such] the portion of nonaeronautical revenue deemed appropriate in determining the rates, rentals, fees, and charges applicable to aeronautical users of the statewide system of airports. The rates, rentals, fees, and charges determined by the [director] chief executive officer in the manner set forth in this subsection shall be those charges payable by the aeronautical users for the periods immediately following the date of expiration of the existing contract, lease, license, or agreement. If fees are established pursuant to this section, the [department] corporation shall prepare a detailed report on the circumstances and rates and charges that have been established, and shall submit the report to the legislature no later than twenty days prior to the convening of the next regular session. If a schedule of rates, rentals, fees, and charges developed by the [director] chief executive officer in accordance with this section is projected by the [department] corporation to produce revenues [which,] that, together with aviation fuel taxes, will be in excess of the amount required to meet the expenditures of the statewide system of airports set forth in section 261-5(a), including expenditures for capital improvement projects approved by the legislature, and to comply with covenants and agreements with holders of airport revenue bonds, the [department] corporation shall submit the schedule of rates, rentals, fees, and charges to the legislature prior to the convening of the next regular session of the legislature. Within forty-five days after the convening of the regular session, the legislature may disapprove any schedule of rates, rentals, fees, and charges required to be submitted to it by this section by concurrent resolution. If no action is taken by the legislature within the forty-five-day period the schedule of rates, rentals, fees, and charges shall be deemed approved. If the legislature disapproves the schedule within the forty-five-day period, the [director] chief executive officer shall develop a new schedule of rates, rentals, fees, and charges in accordance with this section within seventy-five days of the disapproval. Pending the development of a new schedule of rates, rentals, fees, and charges, the schedule submitted to the legislature shall remain in force and effect. Notwithstanding any other provision of law to the contrary, the [department] corporation may waive landing fees and other aircraft charges established under this section at any airport owned or controlled by the State whenever: (1) The governor declares a state of emergency; and (2) The [department] corporation determines that the waiver of landing fees and other charges for the aircraft is consistent with assisting in the delivery of humanitarian relief to disaster-stricken areas of the State." SECTION 15. Section 262-1, Hawaii Revised Statutes, is amended by adding two new definitions to be appropriately inserted and to read as follows: ""Chief executive officer" means the chief executive officer of the Hawaii airports corporation. "Corporation" means the Hawaii airports corporation." SECTION 16. On and after the transfer completion date established by the Hawaii airports corporation in section 18(b) of this Act, and until the revisor of statutes makes the amendments to applicable provisions in chapters 102, 261, 261D, and 262, Hawaii Revised Statutes, described in this section, every reference to the department of transportation or "department" or its role in awarding concessions in chapters 102, 261, 261D, and 262, Hawaii Revised Statutes, shall be a reference to the Hawaii airports corporation, and every reference to the director of transportation or "director" or the director's role in awarding concessions in chapters 102, 261, 261D, and 262, Hawaii Revised Statutes, shall be a reference to the chief executive officer of the Hawaii airports corporation. After the transfer completion date but no later than when the subsequent supplements to the Hawaii Revised Statutes are prepared, the revisor of statutes shall make appropriate changes, including, without limitation: (1) Substituting the term "chief executive officer" for the terms "director" or "director of transportation", the term "Hawaii airports corporation" for the term "department of transportation", and the term "corporation" for the term "department"; (2) Deleting the definition of "director", in chapters 261 and 262, Hawaii Revised Statutes; and (3) Deleting the definition of "department" in sections 261-1 and 262-1, Hawaii Revised Statutes. SECTION 17. The Hawaii airports corporation shall succeed to the jurisdiction, powers, and responsibilities of the department of transportation over aeronautics and airports, including all of the functions relating to airports and aeronautics performed by the department and its airports division, on the transfer completion date published by the Hawaii airports corporation pursuant to section 18(b) of this Act, which date shall be no later than December 31, 2028. On the transfer completion date, the airports corporation shall assume from the department of transportation: (1) That: (A) Certain Certificate of the Director of Transportation Providing for the Issuance of State of Hawaii Airports System Revenue Bonds dated as of May 1, 1969, relating to certain revenue bonds and other obligations; (B) Certain Indenture of Trust dated as of December 1, 2013, between the department of transportation and U.S. Bank National Association relating to certain certificates of participation; and (C) Certain Indenture of Trust dated as of August 1, 2014, between the department of transportation and MUFG Union Bank, N.A., relating to certain customer facility charge revenue bonds, each as supplemented and amended to date; and (2) The bonds, notes, and other obligations of the department of transportation outstanding under, as well as the covenants, restrictions, and other requirements set forth in, those documents. Thereafter, to the extent that the Hawaii airports corporation is authorized under this Act to exercise powers and duties that are also granted to other departments, offices, or boards of the State, with respect to airports and aeronautical facilities, the Hawaii airports corporation shall exclusively exercise those powers and perform those duties. SECTION 18. (a) Within ninety days of the effective date of this Act, the governor shall designate a representative who shall facilitate the corporation's orderly succession to the jurisdiction, powers, functions, rights, benefits, obligations, assets, liabilities, funds, accounts, contracts, and all other things currently held, used, incurred, or performed by the department of transportation, its director and staff, and its airports division, in administering and exercising the authority and fulfilling the responsibilities authorized or conferred upon the department of transportation and the director of transportation, by chapters 102, 261, 261D, and 262, Hawaii Revised Statutes. Within one hundred eighty days of the effective date of this Act, the governor shall appoint the members of the board of directors of the Hawaii airports corporation. To facilitate the corporation's timely assumption of the department of transportation's authority and responsibilities, including all of the department's associated bonds, notes, and obligations as described in paragraph (7), the department of transportation, the department of accounting and general services, the department of human resources development, the state procurement office, and any other state department or agency shall, if requested by the corporation, enter into a memorandum of understanding with the corporation to: (1) Provide administrative support services for the corporation pending the transfer of employees from the department of transportation to the Hawaii airports corporation pursuant to section 22 of this Act; (2) Develop a policy and set of robust procurement procedures that foster accountability, transparency and oversight of contracts, to include compliance with federal procurement requirements; (3) Assist the corporation with the organization of its human resources development functions, including establishing: (A) A human resources office; (B) The corporation's civil service and civil service positions, and the classification system, merit appeals board, recruitment system, performance appraisal system, and the administrative rules, policies, standards, and procedures, including internal complaint procedures, adopted to support its civil service; and (C) The corporation's exempt and excluded positions, and guidelines, procedures, and policies for filling them, and compensating the officers and employees who fill them; (4) Assist the corporation in establishing its accounting, budgeting, fund management, and communication and electronic information systems, and creating appropriate interfaces between the corporation's accounting, budgeting, fund management, communication and electronic information systems, and those of the department of transportation, and other state agencies; (5) Assist the corporation in identifying the plans and reports that departments and agencies administratively attached to a department are required to prepare for the governor, the legislature, or another state department or agency with respect to aeronautics or the State's airport system; determining whether those plans and reports have been prepared and will be transferred to the corporation on the transfer completion date; and preparing the same for the corporation, if they do not exist; (6) Expeditiously transfer or otherwise facilitate the corporation's acquisition or assumption of all of the powers, functions, rights, benefits, obligations, assets, funds, accounts, contracts, and all other things held, used, incurred, or performed by the department of transportation, its director and staff, and its airports division, in exercising the authority and fulfilling and administering the responsibilities conferred upon the department of transportation and the director of transportation by chapters 102, 261, 261D, and 262, Hawaii Revised Statutes; (7) Assign and transfer: (A) That certain Certificate of the Director of Transportation Providing for the Issuance of State of Hawaii Airports System Revenue Bonds dated as of May 1, 1969, relating to certain revenue bonds and other obligations; (B) That certain Indenture of Trust dated as of December 1, 2013, between the department of transportation and U.S. Bank National Association relating to certain certificates of participation; and (C) That certain Indenture of Trust dated as of August 1, 2014, between the department of transportation and MUFG Union Bank, N.A., relating to certain customer facility charge revenue bonds, each as supplemented and amended to date; the assumption of all indebtedness of the department of transportation heretofore issued and outstanding thereunder; and the adoption of policies and procedures designed to ensure continuing compliance with the terms thereof for so long as they are applicable; and (8) Reimburse each cooperating department or agency for the cost of services provided under the memorandum of understanding. (b) As soon as feasible, the Hawaii airports corporation, with the concurrence of the director of transportation and the governor, shall establish the transfer completion date, which shall be no later than December 31, 2028, and publish notice of the transfer completion date by: (1) Publishing the notice in a daily publication of statewide circulation pursuant to section 1-28.5, Hawaii Revised Statutes; (2) Posting a copy of the notice on an electronic calendar on a website maintained by the State; (3) Providing a copy of the notice to the department of transportation, the Secretaries of the United States Department of Transportation and Department of Defense, the head of the Federal Aviation Administration, and the head of every other state department; and (4) Posting the notice prominently at every airport and air navigation facility in the State. All notices shall be published, distributed, or posted at least ninety days before the transfer completion date. SECTION 19. It is the intent of this Act not to jeopardize the receipt of any federal aid nor to impair any existing federal income tax exemption to, security interest of, or obligation of the State or any agency thereof to the holders of any bonds or other obligations issued by the State or by any department or agency of the State, and to the extent, and only to the extent necessary to effectuate this intent, the governor may modify the strict provisions of this Act but shall promptly report any modification with reasons therefor to the legislature at its next session thereafter for review by the legislature. SECTION 20. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date. The department of transportation shall be responsible for any and all obligations incurred by the department or its airports division in connection with the department's exercise of the authority and performance of the duties and responsibilities conferred upon it and its director by chapters 102, 261, 261D, and 262, Hawaii Revised Statutes, until the time that the obligations, including any accounts payable, accrued paid time off, debt, capital leases, and other obligations incurred before the transfer completion date, have been assumed by the Hawaii airports corporation, which shall not occur prior to the transfer completion date. All collective bargaining disputes or claims against the department of transportation grounded in an act or omission, or an event that occurred prior to the transfer completion date shall remain the responsibility of the department of transportation. All liabilities arising out of the Hawaii airports corporation's exercise of the authority and performance of the duties and responsibilities conferred upon it and its chief executive officer by chapters 102, 261, 261D, and 262, Hawaii Revised Statutes, after the transfer completion date shall be the responsibility of the Hawaii airports corporation. The assumption by the Hawaii airports corporation of the bonds, notes, or other obligations of the department of transportation relating to the State's airports system shall be subject to the terms and provisions of any certificate, indenture, or resolution securing those bonds, notes, or other obligations. On the transfer completion date, the Hawaii airports corporation shall assume responsibility for all rights, duties, penalties, and proceedings of the department of transportation related to the State's airports system. SECTION 21. The State of Hawaii pledges to and agrees with the holders of the bonds, notes, or other obligations of the department of transportation being assumed by the Hawaii airports corporation on the transfer completion date and the holders of the bonds, notes, or other obligations of the airports corporation issued pursuant to chapters 37D or 39, Hawaii Revised Statutes, that the State shall not limit or alter the rights and powers vested in the Hawaii airports corporation so as to impair the terms of any contract made or assumed by the airports corporation with holders or in any way impair the rights and remedies of holders until bonds, notes, or other obligations, together with interest thereon, with interest on any unpaid installments of interest, and all costs and expenses in connection with any action or proceedings by or on behalf of holders, are fully met and discharged. In addition, the State pledges to and agrees with the holders of the bonds, notes, or other obligations of the department of transportation being assumed by the Hawaii airports corporation on the transfer completion date and the holders of the bonds, notes, or other obligations of the airports corporation issued pursuant to chapter 37D or 39, Hawaii Revised Statutes, that the State shall not limit or alter the basis on which the revenues or user taxes securing any such bonds, notes, or other obligations issued or assumed by the airports corporation are to be received by the airports corporation, or the rights of the airports corporation to the use of the funds, so as to impair the terms of any contract securing the same. The Hawaii airports corporation is authorized to include these pledges and agreements of the State in any contract with the holders of bonds, notes, or other obligations issued pursuant to chapter 37D or 39, Hawaii Revised Statutes. SECTION 22. The Hawaii airports corporation shall recognize all bargaining units and collective bargaining agreements existing at the time of transfer to the corporation. All employees who are subject to chapter 76, Hawaii Revised Statutes, and occupy civil service positions and whose functions are transferred to the Hawaii airports corporation by this Act shall retain their civil service status, whether permanent or temporary. The employees shall be transferred to the Hawaii airports corporation without loss of salary, seniority (except as prescribed by applicable collective bargaining agreements), retention points, prior service credits, any vacation and sick leave credits previously earned, and other rights, benefits, and privileges, in accordance with state personnel laws and this Act; provided that the employees meet applicable requirements for the class or position to which transferred or appointed, as applicable. Any employee who, prior to this Act, is a member of a bargaining unit, shall remain in that bargaining unit when future collective bargaining agreements are negotiated. Any employee who, prior to this Act, is exempt from civil service and is transferred to the Hawaii airports corporation as a consequence of this Act may retain the employee's exempt status, but shall not be appointed to a civil service position as a consequence of this Act. An exempt employee who is transferred by this Act shall not suffer any loss of prior service credit, vacation or sick leave credits previously earned, or other employee benefits or privileges as a consequence of this Act. The chief executive officer of the Hawaii airports corporation may prescribe the duties and qualifications of these employees and fix their salaries without regard to chapter 76, Hawaii Revised Statutes. No employee included in a collective bargaining unit as an employee of the department of transportation shall be laid off as a consequence of this Act. The department of transportation and the Hawaii airports corporation shall require every employer doing business at the airports pursuant to a concession contract or subcontract entered into with the airports corporation after the effective date of this section to retain as its employees for a minimum period of one hundred twenty days, during which they may be terminated only for cause, workers who are employed by the previous concessionaire or who were employed at the end of that concessionaire's contract and who have been displaced. The employer shall retain such workers in the same equivalent job classifications as they held under the previous concessionaire and if more workers are eligible for retention than there are positions in the new or expanded concession, the employer shall give such workers preference for future employment in order of their seniority, as determined by their total length of service at the airports under one or more concessionaires. SECTION 23. On or no more than ninety days after the transfer completion date, all appropriations, records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by the department of transportation relating to the functions transferred to the Hawaii airports corporation shall be transferred with the functions to which they relate. SECTION 24. All rules, policies, procedures, guidelines, and other material adopted or developed by the department of transportation to implement provisions of the Hawaii Revised Statutes that are reenacted or made applicable to the Hawaii airports corporation by this Act shall remain in full force and effect on and after the transfer completion date established pursuant to section 18(b) of this Act, until amended or repealed by the Hawaii airports corporation pursuant to chapter 91, Hawaii Revised Statutes. In the interim, every reference to the department of transportation or director of transportation in those rules, policies, procedures, guidelines, and other material is amended to refer to the Hawaii airports corporation or chief executive officer of the Hawaii airports corporation, as appropriate. SECTION 25. All deeds, executive orders, leases, contracts, loans, agreements, permits, or other documents executed or entered into by or on behalf of the department of transportation, pursuant to the provisions of the Hawaii Revised Statutes, that are reenacted or made applicable to the Hawaii airports corporation by this Act shall remain in full force and effect. On the transfer completion date established pursuant to section 18(b) of this Act, every reference to the department of transportation in those deeds, executive orders, leases, contracts, loans, agreements, permits or other documents shall be construed as a reference to the Hawaii airports corporation or the board of directors of the airports corporation. SECTION 26. There is appropriated out of the airport revenue fund the sum of $3,000,000 or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 to effect the transfer of functions from the department of transportation to the Hawaii airports corporation required by this Act. The sums appropriated shall be expended by the Hawaii airports corporation to implement the provisions of this Act. SECTION 27. 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 28. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 29. This Act shall take effect on July 1, 2025; provided that section 14 of this Act shall take effect upon the satisfaction and discharge of: (1) That certain Certificate of the Director of Transportation Providing for the Issuance of State of Hawaii Airports System Revenue Bonds dated as of May 1, 1969; (2) That certain Indenture of Trust dated as of December 1, 2013, between the department of transportation and U.S. Bank National Association; and (3) All obligations issued and outstanding under the Certificate and Indenture. INTRODUCED BY: _____________________________
4848
4949 SECTION 1. The legislature finds that the well-being of the State is substantially dependent on the efficient administration, development, management, and operation of its airports and air transportation infrastructure. The legislature further finds that responsibility for Hawaii's airport planning, management, marketing, and capital development functions is currently distributed among a number of agencies, including the department of transportation's airports division; Hawaii tourism authority; department of budget and finance; department of human resources development; board of land and natural resources; department of health, with respect to environmental concerns; and office of Hawaiian affairs, with respect to ceded land issues; among others. Distributed responsibility and involvement by multiple agencies, which sometimes have conflicting goals and priorities, results in inefficiency, delayed decision-making, and reduced effectiveness. The legislature believes that coordinated planning and development of the State's air transportation system and infrastructure will be achieved more effectively by establishing and giving a separate state entity overall jurisdiction and responsibility for aeronautics and the State's airports.
5050
5151 The legislature further finds that the establishment of a separate airports corporation will assist in the achievement of the following important statewide objectives:
5252
5353 (1) Maximizing the contribution of the State's airports to Hawaii's economy;
5454
5555 (2) Ensuring dedicated expert airport leadership, management continuity, and year-round decision-making, consistent with industry best practices;
5656
5757 (3) Improving administrative efficiency by streamlining administrative processes;
5858
5959 (4) Accelerating the planning and implementation of the state airports' capital improvement programs;
6060
6161 (5) Increasing the financial flexibility and strength of the State's airports;
6262
6363 (6) Increasing economic opportunities for the State, in collaboration with the Hawaii tourism authority;
6464
6565 (7) Increasing responsiveness to consumer needs, commercial opportunities, and economic demands; and
6666
6767 (8) Maximizing job creation within the State.
6868
6969 In addition, the management and administration of scarce and increasingly valuable airport resources is most effectively served by a separate airports corporation.
7070
7171 The purpose of this Act is to establish the Hawaii airports corporation, which shall assume all of the authority, powers, functions, duties, and responsibilities of the department of transportation related to aeronautics and airports, including responsibility for the development, management, operation, and maintenance of the State's airports, on and after the transfer completion date announced by the Hawaii airports corporation pursuant to section 18(b) of this Act.
7272
7373 SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:
7474
7575 "Chapter
7676
7777 hawaii airports corporation
7878
7979 part i. general provisions
8080
8181 § -1 Definitions. As used in this chapter:
8282
8383 "Aircraft" shall have the same meaning as defined in section 261-1.
8484
8585 "Air navigation facility" shall have the same meaning as defined in section 261-1.
8686
8787 "Airport" shall have the same meaning as defined in section 261-1.
8888
8989 "Airport revenue" means all moneys paid into the airport revenue fund pursuant to section 261-5(a).
9090
9191 "Airports corporation" or "corporation" means the Hawaii airports corporation established by this chapter.
9292
9393 "Chief executive officer" means the chief executive officer of the Hawaii airports corporation.
9494
9595 "Project labor agreement" means a pre-hire collective bargaining agreement with labor organizations that establishes the terms and conditions of employment for a specific construction project; sets forth effective, immediate, and mutually binding procedures for resolving jurisdictional labor disputes and labor grievances; contains guarantees against strikes, lockouts, or similar actions; and permits the selection of the lowest qualified responsible bidder, without regard to union or non-union status at other construction sites.
9696
9797 § -2 Airports corporation; establishment; board; members; chief executive officer. (a) There is established the Hawaii airports corporation to:
9898
9999 (1) Develop and implement management structures, policies, and procedures based on airport industry best practices;
100100
101101 (2) Efficiently develop, manage, operate, and maintain the State's airports and aeronautical facilities; and
102102
103103 (3) Administer the provisions of chapters 102, 261, 261D, and 262 that are applicable to airports and aeronautical facilities. The corporation shall be a body politic and corporate, and an instrumentality and agency of the State, placed within the department of transportation for administrative purposes only, and shall enjoy the same sovereign immunity available to the State. The corporation shall not be subject to supervision by the department of transportation or its director and shall be exempt from section 26-35(a)(1), (4), (5), and (6).
104104
105105 (b) The powers of the airports corporation shall be vested in and exercised by a board of directors that shall consist of nine voting members; provided that:
106106
107107 (1) The members shall be appointed by the governor as provided in section 26-34, except as provided by this section;
108108
109109 (2) The members shall include at least one resident each from the city and county of Honolulu and the counties of Hawaii, Kauai, and Maui;
110110
111111 (3) Two members shall be appointed by the governor from a list of names submitted for each appointment by the president of the senate, and two members shall be appointed by the governor from a list of names submitted for each appointment by the speaker of the house of representatives; provided that each list of names shall contain at least three names and shall include two names that qualify to fill any county-specific vacancy, as appropriate; and
112112
113113 (4) Notwithstanding the state residency provisions of section 78-1(b), there shall be not more than two members who are non-residents of the State on the board at any time.
114114
115115 Notwithstanding section 26-34, appointments to the board shall not be subject to the advice and consent of the senate.
116116
117117 (c) Members shall have relevant business, management, and procurement experience, including experience in one or more of the following disciplines: financial planning, budgeting, hospitality, tourism, commercial development, construction, marketing, law, aviation, non-aviation airport business, or the cultural traditions and practices of Native Hawaiians. It is the intent of the legislature that there shall be, as far as practicable, a wide cross-section of these disciplines represented by the board.
118118
119119 (d) Members shall be appointed by the governor for terms of four years. Notwithstanding section 26-34(a) and (b), all members of the board shall continue in office until their respective successors have been appointed; provided that no member shall serve more than eight consecutive years.
120120
121121 (e) No board member appointed under this section shall be an officer or employee of the State or a county.
122122
123123 (f) Each board member shall serve without compensation, but shall be reimbursed for necessary expenses, including travel expenses, incurred in the performance of their duties.
124124
125125 (g) The board of directors of the airports corporation shall appoint a single executive to be known as the chief executive officer of the Hawaii airports corporation, who shall:
126126
127127 (1) Not be a member of the board;
128128
129129 (2) Be exempt from chapters 76 and 89; and
130130
131131 (3) Receive a salary fixed by the board.
132132
133133 (h) The chief executive officer:
134134
135135 (1) Shall be selected based on criteria approved by the board, including experience in airport management at an executive level at a large-hub or medium-hub airport within the United States, management of large-scale capital programs, and domestic and international air service development;
136136
137137 (2) Shall be appointed by an affirmative vote of not less than five members of the board;
138138
139139 (3) Shall be employed subject to a formal contract, the terms of which shall be approved by the board; provided that the terms shall include provisions for the removal of the chief executive officer whether with or without cause;
140140
141141 (4) May be removed from office only by a vote of not less than five members of the board; provided that the basis for removal is consistent with the terms of the chief executive officer's employment contract;
142142
143143 (5) Shall have the powers as described in this chapter and the provisions of chapters 102, 261, 261D, and 262 that are applicable to airports and aeronautical facilities, as may be delegated by the board;
144144
145145 (6) Shall, except when excused by the board, attend all meetings of the board, keep a record of the proceedings, and maintain and be the custodian of the official seal of the corporation and all books, records, documents, and papers filed with the corporation;
146146
147147 (7) Shall direct and supervise the corporation's administrative and operational affairs in accordance with the directives of the board;
148148
149149 (8) Shall approve all accounts for salaries and allowable expenses of the corporation; and
150150
151151 (9) Shall do all things necessary, as directed by the board, to carry out the powers and duties conferred upon the corporation by this chapter and the provisions of chapters 102, 261, 261D, and 262 that are applicable to airports and aeronautical facilities.
152152
153153 (i) Upon the vacancy of the position of the chief executive officer, the board of directors shall designate a deputy executive officer or other employee of the corporation to serve as the chief executive officer of the corporation until the vacancy is filled by the board. This interim chief executive officer shall have all of the powers and responsibilities, and receive the salary, of the chief executive officer.
154154
155155 (j) The number of members of the board necessary to constitute a quorum to do business shall be five members, and unless specified elsewhere in this chapter, the concurrence of five members of the board shall be necessary to make any action of the board valid.
156156
157157 § -3 Powers; generally. (a) The Hawaii airports corporation, by and through its board of directors:
158158
159159 (1) Shall exercise power and control over all airports, air navigation facilities, buildings, and other facilities that the corporation is responsible for managing, operating, or controlling under this chapter and the provisions of chapters 102, 261, 261D, and 262 that are applicable to airports and aeronautical facilities;
160160
161161 (2) Shall provide as appropriate for the landing, taking-off, and servicing of aircraft, and the loading and unloading of passengers and cargo at all airports under the control of the corporation;
162162
163163 (3) Shall establish performance targets and performance standards for all state airports to achieve the highest levels of customer service;
164164
165165 (4) Shall ensure that appropriate mission statements, business plans, minimum development standards, and strategic goals are established and that progress towards their accomplishment is regularly assessed and reported;
166166
167167 (5) Shall develop an organization and management structure to best accomplish the goals of the Hawaii airport system and the corporation;
168168
169169 (6) Shall be subject to the provisions of chapter 103D and chapter 104; provided that any offeror of food and beverage or retail concession services shall have an agreement with any labor organization which represents airport terminal concession employees in this State that is valid and enforceable under title 29 United States Code, section 185(a) and that prohibits any strikes, picketing, or other economic interference with the business of the offeror for the duration of the offeror's contract to operate the concession, including renewal or extension, and binds any successors to an original offeror; provided further that any contractor furnishing construction work on any airport, air navigation facility, building, or other facility that the corporation is responsible for managing, operating, or controlling, including construction work undertaken in or on buildings or land owned or leased from the corporation, shall enter into a project labor agreement;
170170
171171 (7) Shall have an official seal and may alter the official seal at its pleasure;
172172
173173 (8) May make, execute, or assume contracts, leases, and all other instruments necessary or convenient for the exercise of its powers and functions under this chapter and the provisions of chapters 102, 261, 261D, and 262 that are applicable to airports and aeronautical facilities;
174174
175175 (9) Shall establish bylaws for its organization and internal management;
176176
177177 (10) Shall adopt rules pursuant to chapter 91 as necessary to implement this chapter and the provisions of chapters 102, 261, 261D, and 262 that are applicable to airports and aeronautical facilities;
178178
179179 (11) Shall prepare and adopt the corporation's operating and capital improvement budgets;
180180
181181 (12) May own, purchase, lease, exchange, or otherwise acquire property, whether real, personal, or mixed, tangible or intangible, and any interest therein, in the name of the corporation, and may assign, exchange, transfer, convey, lease, sublease, or encumber the same or any project, improvement, or facility related thereto; provided that the lands to which the corporation holds title shall not be subject to chapter 171; provided further that any sale, gift, or exchange of real property shall be subject to the terms, conditions, and restrictions applicable to the sale, gift, or exchange of public lands in section 171-50 and 171-64.7; provided further that any lease, sublease, permit, or other encumbrance for any real property shall be issued in accordance with administrative rules adopted by the corporation pursuant to chapter 91;
182182
183183 (13) May procure insurance against any loss in connection with its property and other assets and operations, in amounts and from insurers as it deems desirable; or provide for self-insurance;
184184
185185 (14) May accept and receive gifts or grants in any form from any person, public entity, or source; provided that the grants and gifts shall be used for airports corporation purposes;
186186
187187 (15) Shall take all actions necessary under emergencies declared by the governor;
188188
189189 (16) Shall assume from the department of transportation:
190190
191191 (A) That:
192192
193193 (i) Certain Certificate of the Director of Transportation Providing for the Issuance of State of Hawaii Airports System Revenue Bonds dated as of May 1, 1969, relating to certain revenue bonds and other obligations;
194194
195195 (ii) Certain Indenture of Trust dated as of December 1, 2013, between the department of transportation and U.S. Bank National Association relating to certain certificates of participation; and
196196
197197 (iii) Certain Indenture of Trust dated as of August 1, 2014, between the department of transportation and MUFG Union Bank, N.A., relating to certain customer facility charge revenue bonds, each as supplemented and amended to date; and
198198
199199 (B) The bonds, notes, and other obligations of the department of transportation outstanding under, as well as the covenants, restrictions, and other requirements set forth in, those documents;
200200
201201 (17) Shall adopt policies and procedures designed to ensure continuing compliance with the terms of the documents in paragraph (16) for so long as they are applicable;
202202
203203 (18) Shall fix, impose, prescribe, and collect rates, rentals, fees, or charges for the lease, use, and services of its airport facilities at least sufficient to pay the costs of operation, maintenance, and repair, if any, and the required payments of the principal of and interest on all bonds, notes, or other obligations issued or assumed by the airports corporation and reserves therefor; provided that the rates, rentals, fees, or charges are established at an open meeting subject to the requirements of chapter 92;
204204
205205 (19) Subject to the provisions of the documents assumed by the corporation under paragraph (16)(A), may allot any and all airport revenue and issue revenue bonds, refunding revenue bonds, special facility revenue bonds, bond anticipation notes, and other lawfully authorized obligations of the State in its name and secured by the revenue, or user taxes, or any combination of both, of an undertaking or loan program pursuant to chapter 39, but not in excess of the principal amounts as are necessary for its purposes;
206206
207207 (20) May invest and secure its moneys;
208208
209209 (21) May exercise the power of eminent domain pursuant to chapter 101 and in accordance with sections 261-31 to 261-36, to acquire real property for the corporation with which to carry out this chapter and the provisions of chapters 102, 261, 261D, or 262 that are applicable to airports and aeronautical facilities;
210210
211211 (22) Shall establish and maintain an appropriate system of accounts for the corporation; and
212212
213213 (23) May do any and all things necessary to exercise the powers and perform the duties conferred upon the corporation by this chapter and the provisions of chapters 102, 261, 261D, and 262 that are applicable to airports and aeronautical facilities.
214214
215215 (b) The corporation shall not be subject to chapters 36, 37, 37D, 38, and 40, except for section 36-28.5 and as otherwise provided in this chapter and chapter 261.
216216
217217 (c) The airports corporation may sue and be sued in its corporate name. Notwithstanding any other law to the contrary, all claims arising out of the acts or omissions of the airports corporation or the members of its board, its officers, or its employees, including claims permitted against the State under chapter 661, part I, and claims for torts permitted against the State under chapter 662, may be brought only pursuant to this section and only against the airports corporation. However, the airports corporation shall be subject to suit only in the manner provided for suits against the State, including section 661-11. All defenses available to the State, as well as all limitations on actions against the State, shall be applicable to the airports corporation.
218218
219219 The board of directors, upon the advice of its attorney, may arbitrate, compromise, or settle any claim, action, or suit brought against the airports corporation pursuant to this section. Any claim compromised or settled under this subsection shall be payable solely from the moneys and property of the airports corporation and shall not constitute a general obligation of the State or be secured directly or indirectly by the full faith and credit of the State or the general credit of the State or by any revenue or taxes of the State. Nothing in this subsection shall preclude the board of directors from requesting legislative appropriations to fund the settlement of any claim or judgment against the airports corporation or its officers, employees, or agents.
220220
221221 Rights and remedies conferred by this section shall not be construed to authorize any other claim, suit, or action against the State. In addition, a judgment, compromise, or settlement in an action brought against the airports corporation under this section shall constitute a complete bar to any action brought by the claimant, by reason of the same subject matter, against the State or an officer or employee of the airports corporation.
222222
223223 (d) The corporation shall be a "jurisdiction" and an "appointing authority" under chapter 76 and an "appointing authority" and an "appropriate authority" for those of its officers and employees who are excluded employees under chapter 89C. In addition to its chief executive officer, the corporation may employ executive officers, including a chief procurement officer, appointed by the chief executive officer who are qualified to fill positions established in the bylaws of the corporation adopted by the board of directors, to perform functions and exercise powers assigned by the bylaws or delegated by the board or the chief executive officer. The other executive officers of the corporation, and up to additional specially qualified employees appointed by the chief executive officer shall be exempt from chapters 76 and 89. All other persons employed by the corporation shall be subject to chapters 76 and 89, and rules adopted to implement those provisions, unless expressly exempted from the civil service under chapter 76 or excluded from collective bargaining under chapter 89. The officers and personnel of the corporation shall be included in all benefit programs applicable to officers and employees of the State.
224224
225225 (e) The corporation and its corporate existence shall continue until terminated by law; provided that no termination shall take effect as long as bonds or other obligations issued or assumed by the corporation are outstanding, unless adequate provision has been made for the payment or satisfaction thereof. Upon termination of the existence of the corporation, all of the rights and properties of the corporation then remaining shall pass to and vest in the State in the manner prescribed by law.
226226
227227 part iI. BUDGET AND FINANCE
228228
229229 § -11 Exemptions. The airport revenue fund, passenger facility charge special fund, and rental motor vehicle customer facility charge special fund shall be exempt from chapters 36, 37, 37D and 40.
230230
231231 § -12 Fiscal provisions. (a) The corporation's board of directors shall establish guidelines for preparing the corporation's annual operating and capital improvement budget proposals that take into account anticipated receipts, surpluses, reserves, and funds from any other source, on deposit in or available for deposit into the airport revenue fund, the passenger facility charge special fund, the rental motor vehicle customer facility charge special fund, or any other special or revolving fund that the legislature may establish for the corporation.
232232
233233 (b) The corporation shall submit its biennium and supplemental operating and capital improvement budget proposals to the department of transportation, which shall transmit those budget proposals to the governor.
234234
235235 (c) Along with its budget proposals, the corporation shall provide an annual report of the income to and the expenditures from the airport revenue fund, the passenger facility charge special fund, the rental motor vehicle customer facility charge special fund, and any other special or revolving fund administered by the corporation. The corporation shall provide a copy of its annual report to the legislature at least twenty days prior to the convening of each regular session.
236236
237237 (d) The supporting documents for each budget proposal shall include the annual report, but need not include any other information, except when state general funds are requested.
238238
239239 § -13 Budget oversight. The corporation's operating and capital improvement budgets shall be subject to review or approval by the governor or any agency of the executive branch, except where state general funds are requested.
240240
241241 § -14 Accounts; depositories. (a) Appropriations for the corporation shall not be subject to any allotment system or requirements. The director of finance shall notify the corporation and comptroller that all of the appropriations for the corporation for the fiscal year have been allotted and are available for expenditure as soon as possible, and in no event more than three business days, after the general or supplemental appropriations act is effective.
242242
243243 (b) Moneys in the airport revenue fund, passenger facility charge special fund, and rental motor vehicle customer facility charge special fund may be deposited in depositories other than the state treasury; provided that the airports corporation consults with the director of finance before selecting the depository for the corporation's funds, and submits copies of annual statements from each of the depositories in which the moneys from the funds are deposited.
244244
245245 § -15 Expenditures in excess of appropriations. If in any fiscal year the amount of revenues deposited into the airport revenue fund exceeds the amount appropriated from that fund for that year, the board of directors of the corporation may approve expenditures in excess of the amount appropriated, up to the amount by which revenues for that fund exceed the appropriations from that fund for a fiscal year.
246246
247247 § -16 Issuance of bonds. On an annual basis, and upon request of the corporation, the legislature may authorize one lump sum for each means or source of funds for each of the following types of bonds to be issued by the corporation: revenue bonds, refunding revenue bonds, and special facility revenue bonds.
248248
249249 § -17 Audits. The state auditor shall conduct management and financial audits of the corporation for fiscal year 2026 and every second year thereafter.
250250
251251 § -18 Rate-setting; methodology. The corporation shall use the residual method when determining overall costs and assigning rates and charges."
252252
253253 SECTION 3. Section 26-19, Hawaii Revised Statutes, is amended to read as follows:
254254
255255 "§26-19 Department of transportation. (a) The department of transportation shall be headed by a single executive to be known as the director of transportation. The department shall establish, maintain, and operate transportation facilities of the State, including highways, [airports,] harbors, and any other transportation facilities and activities, other than airports and aeronautics, as may be authorized by law.
256256
257257 (b) The department shall plan, develop, promote, and coordinate various transportation systems management programs that shall include but not be limited to alternate work and school hours programs, bicycling programs, and ridesharing programs.
258258
259259 (c) The department shall develop and promote ridesharing programs that shall include but not be limited to carpool and vanpool programs, and may assist organizations interested in promoting similar programs, arrange for contracts with private organizations to manage and operate these programs, and assist in the formulation of ridesharing arrangements. Ridesharing programs include informal arrangements in which two or more persons ride together in a motor vehicle.
260260
261261 [(d) The functions and authority heretofore exercised by the department of public works with respect to highways are transferred to the department of transportation established by this chapter.
262262
263263 (e) On July 1, 1961, the Hawaii aeronautics commission, the board of harbor commissioners and the highway commission shall be abolished and their remaining functions, duties, and powers shall be transferred to the department of transportation.]"
264264
265265 SECTION 4. Section 28-8.3, Hawaii Revised Statutes, is amended as follows:
266266
267267 1. By amending subsection (a) to read:
268268
269269 "(a) No department of the State other than the attorney general may employ or retain any attorney, by contract or otherwise, for the purpose of representing the State or the department in any litigation, rendering legal counsel to the department, or drafting legal documents for the department; provided that the foregoing provision shall not apply to the employment or retention of attorneys:
270270
271271 (1) By the public utilities commission, the labor and industrial relations appeals board, and the Hawaii labor relations board;
272272
273273 (2) By any court or judicial or legislative office of the State; provided that if the attorney general is requested to provide representation to a court or judicial office by the chief justice or the chief justice's designee, or to a legislative office by the speaker of the house of representatives and the president of the senate jointly, and the attorney general declines to provide [such] representation on the grounds of conflict of interest, the attorney general shall retain an attorney for the court, judicial, or legislative office, subject to approval by the court, judicial, or legislative office;
274274
275275 (3) By the legislative reference bureau;
276276
277277 (4) By any compilation commission that may be constituted from time to time;
278278
279279 (5) By the real estate commission for any action involving the real estate recovery fund;
280280
281281 (6) By the contractors license board for any action involving the contractors recovery fund;
282282
283283 (7) By the office of Hawaiian affairs;
284284
285285 (8) By the department of commerce and consumer affairs for the enforcement of violations of chapters 480 and 485A;
286286
287287 (9) As grand jury counsel;
288288
289289 (10) By the Hawaii health systems corporation, or its regional system boards, or any of their facilities;
290290
291291 (11) By the auditor;
292292
293293 (12) By the office of ombudsman;
294294
295295 (13) By the insurance division;
296296
297297 (14) By the [University] university of Hawaii;
298298
299299 (15) By the Kahoolawe island reserve commission;
300300
301301 (16) By the division of consumer advocacy;
302302
303303 (17) By the office of elections;
304304
305305 (18) By the campaign spending commission;
306306
307307 (19) By the Hawaii tourism authority, as provided in section 201B-2.5;
308308
309309 (20) By the division of financial institutions;
310310
311311 (21) By the office of information practices;
312312
313313 (22) By the school facilities authority;
314314
315315 (23) By the Mauna Kea stewardship and oversight authority; [or]
316316
317317 (24) By the Hawaii airports corporation; or
318318
319319 [(24)] (25) By a department, if the attorney general, for reasons deemed by the attorney general to be good and sufficient, declines to employ or retain an attorney for a department; provided that the governor waives the provision of this section."
320320
321321 2. By amending subsection (c) to read:
322322
323323 "(c) Every attorney employed by any department on a full-time basis, except an attorney employed by the public utilities commission, the labor and industrial relations appeals board, the Hawaii labor relations board, the office of Hawaiian affairs, the Hawaii health systems corporation or its regional system boards, the department of commerce and consumer affairs in prosecution of consumer complaints, insurance division, the division of consumer advocacy, the [University] university of Hawaii, the Hawaii tourism authority as provided in section 201B-2.5, the Mauna Kea stewardship and oversight authority, the office of information practices, the Hawaii airports corporation, or as grand jury counsel, shall be a deputy attorney general."
324324
325325 SECTION 5. Section 36-27, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
326326
327327 "(a) Except as provided in this section, and notwithstanding any other law to the contrary, from time to time, the director of finance, for the purpose of defraying the prorated estimate of central service expenses of government in relation to all special funds, except the:
328328
329329 (1) Special out-of-school time instructional program fund under section 302A-1310;
330330
331331 (2) School cafeteria special funds of the department of education;
332332
333333 (3) Special funds of the [University] university of Hawaii;
334334
335335 (4) Convention center enterprise special fund under section 201B-8;
336336
337337 (5) Special funds established by section 206E-6;
338338
339339 (6) Aloha Tower fund created by section 206J-17;
340340
341341 (7) Funds of the employees' retirement system created by section 88-109;
342342
343343 (8) Hawaii hurricane relief fund established under chapter 431P;
344344
345345 (9) Hawaii health systems corporation special funds and the subaccounts of its regional system boards;
346346
347347 (10) Universal service fund established under section 269‑42;
348348
349349 (11) Emergency and budget reserve fund under section 328L‑3;
350350
351351 (12) Public schools special fees and charges fund under section 302A-1130;
352352
353353 (13) Sport fish special fund under section 187A-9.5;
354354
355355 (14) Neurotrauma special fund under section 321H-4;
356356
357357 (15) Glass advance disposal fee established by section 342G-82;
358358
359359 (16) Center for nursing special fund under section 304A‑2163;
360360
361361 (17) Passenger facility charge special fund established by section 261-5.5;
362362
363363 (18) Solicitation of funds for charitable purposes special fund established by section 467B-15;
364364
365365 (19) Land conservation fund established by section 173A-5;
366366
367367 (20) Court interpreting services revolving fund under section 607-1.5;
368368
369369 (21) Trauma system special fund under section 321-22.5;
370370
371371 (22) Hawaii cancer research special fund;
372372
373373 (23) Community health centers special fund;
374374
375375 (24) Emergency medical services special fund;
376376
377377 (25) Rental motor vehicle customer facility charge special fund established under section 261-5.6;
378378
379379 (26) Shared services technology special fund under section 27-43;
380380
381381 (27) Automated victim information and notification system special fund established under section 353-136;
382382
383383 (28) Deposit beverage container deposit special fund under section 342G-104;
384384
385385 (29) Hospital sustainability program special fund under section 346G-4;
386386
387387 (30) Nursing facility sustainability program special fund under section 346F-4;
388388
389389 (31) Hawaii 3R's school improvement fund under section 302A-1502.4;
390390
391391 (32) After-school plus program revolving fund under section 302A-1149.5;
392392
393393 (33) Civil monetary penalty special fund under section 321‑30.2; [and
394394
395395 [](34)[]]Stadium development special fund under section 109‑3.5[,]; and
396396
397397 (35) Airport revenue fund,
398398
399399 shall deduct five per cent of all receipts of all other special funds, which deduction shall be transferred to the general fund of the State and become general realizations of the State. All officers of the State and other persons having power to allocate or disburse any special funds shall cooperate with the director in effecting these transfers. To determine the proper revenue base upon which the central service assessment is to be calculated, the director shall adopt rules pursuant to chapter 91 for the purpose of suspending or limiting the application of the central service assessment of any fund. No later than twenty days prior to the convening of each regular session of the legislature, the director shall report all central service assessments made during the preceding fiscal year."
400400
401401 SECTION 6. Section 36-30, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
402402
403403 "(a) Each special fund, except the:
404404
405405 (1) Special out-of-school time instructional program fund under section 302A-1310;
406406
407407 (2) School cafeteria special funds of the department of education;
408408
409409 (3) Special funds of the [University] university of Hawaii;
410410
411411 (4) Special funds established by section 206E-6;
412412
413413 (5) Aloha Tower fund created by section 206J-17;
414414
415415 (6) Funds of the employees' retirement system created by section 88-109;
416416
417417 (7) Hawaii hurricane relief fund established under chapter 431P;
418418
419419 (8) Convention center enterprise special fund established under section 201B-8;
420420
421421 (9) Hawaii health systems corporation special funds and the subaccounts of its regional system boards;
422422
423423 (10) Universal service fund established under section 269‑42;
424424
425425 (11) Emergency and budget reserve fund under section 328L‑3;
426426
427427 (12) Public schools special fees and charges fund under section 302A-1130;
428428
429429 (13) Sport fish special fund under section 187A-9.5;
430430
431431 (14) Neurotrauma special fund under section 321H-4;
432432
433433 (15) Center for nursing special fund under section 304A‑2163;
434434
435435 (16) Passenger facility charge special fund established by section 261-5.5;
436436
437437 (17) Court interpreting services revolving fund under section 607-1.5;
438438
439439 (18) Trauma system special fund under section 321-22.5;
440440
441441 (19) Hawaii cancer research special fund;
442442
443443 (20) Community health centers special fund;
444444
445445 (21) Emergency medical services special fund;
446446
447447 (22) Rental motor vehicle customer facility charge special fund established under section 261-5.6;
448448
449449 (23) Shared services technology special fund under section 27-43;
450450
451451 (24) Nursing facility sustainability program special fund established pursuant to section 346F-4;
452452
453453 (25) Automated victim information and notification system special fund established under section 353-136;
454454
455455 (26) Hospital sustainability program special fund under section 346G-4;
456456
457457 (27) Civil monetary penalty special fund under section 321‑30.2; [and
458458
459459 [](28)[]]Stadium development special fund under section 109‑3.5[,]; and
460460
461461 (29) Airport revenue fund;
462462
463463 shall be responsible for its pro rata share of the administrative expenses incurred by the department responsible for the operations supported by the special fund concerned."
464464
465465 SECTION 7. Section 41D-2, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
466466
467467 "(b) Any provision in this section to the contrary notwithstanding, the Hawaii airports corporation, the [University] university of Hawaii (as to casualty insurance risks only), the Research Corporation of the University of Hawaii (as to casualty insurance risks only), the public health facilities of the department of health (with respect to medical malpractice risks only), and the Hawaii health systems corporation and its regional system boards shall be exempt from the requirements of this chapter."
468468
469469 SECTION 8. Section 76-11, Hawaii Revised Statutes, is amended by amending the definition of "jurisdiction" to read as follows:
470470
471471 ""Jurisdiction" means the State, the city and county of Honolulu, the county of Hawaii, the county of Maui, the county of Kauai, the judiciary, the department of education, the [University] university of Hawaii, the Hawaii airports corporation, and the Hawaii health systems corporation."
472472
473473 SECTION 9. Section 76-16, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
474474
475475 "(b) The civil service to which this chapter applies shall comprise all positions in the State now existing or hereafter established and embrace all personal services performed for the State, except the following:
476476
477477 (1) Commissioned and enlisted personnel of the Hawaii National Guard and positions in the Hawaii National Guard that are required by state or federal laws or regulations or orders of the National Guard to be filled from those commissioned or enlisted personnel;
478478
479479 (2) Positions filled by persons employed by contract where the director of human resources development has certified that the service is special or unique or is essential to the public interest and that, because of circumstances surrounding its fulfillment, personnel to perform the service cannot be obtained through normal civil service recruitment procedures. Any contract may be for any period not exceeding one year;
480480
481481 (3) Positions that must be filled without delay to comply with a court order or decree if the director determines that recruitment through normal recruitment civil service procedures would result in delay or noncompliance, such as the Felix-Cayetano consent decree;
482482
483483 (4) Positions filled by the legislature or by either house or any committee thereof;
484484
485485 (5) Employees in the office of the governor and office of the lieutenant governor, and household employees at Washington Place;
486486
487487 (6) Positions filled by popular vote;
488488
489489 (7) Department heads, officers, and members of any board, commission, or other state agency whose appointments are made by the governor or are required by law to be confirmed by the senate;
490490
491491 (8) Judges, referees, receivers, masters, jurors, notaries public, land court examiners, court commissioners, and attorneys appointed by a state court for a special temporary service;
492492
493493 (9) One bailiff for the chief justice of the supreme court who shall have the powers and duties of a court officer and bailiff under section 606-14; one secretary or clerk for each justice of the supreme court, each judge of the intermediate appellate court, and each judge of the circuit court; one secretary for the judicial council; one deputy administrative director of the courts; three law clerks for the chief justice of the supreme court, two law clerks for each associate justice of the supreme court and each judge of the intermediate appellate court, one law clerk for each judge of the circuit court, two additional law clerks for the civil administrative judge of the circuit court of the first circuit, two additional law clerks for the criminal administrative judge of the circuit court of the first circuit, one additional law clerk for the senior judge of the family court of the first circuit, two additional law clerks for the civil motions judge of the circuit court of the first circuit, two additional law clerks for the criminal motions judge of the circuit court of the first circuit, and two law clerks for the administrative judge of the district court of the first circuit; and one private secretary for the administrative director of the courts, the deputy administrative director of the courts, each department head, each deputy or first assistant, and each additional deputy, or assistant deputy, or assistant defined in paragraph (16);
494494
495495 (10) First deputy and deputy attorneys general, the administrative services manager of the department of the attorney general, one secretary for the administrative services manager, an administrator and any support staff for the criminal and juvenile justice resources coordination functions, and law clerks;
496496
497497 (11) (A) Teachers, principals, vice-principals, complex area superintendents, deputy and assistant superintendents, other certificated personnel, and [no] not more than twenty noncertificated administrative, professional, and technical personnel not engaged in instructional work;
498498
499499 (B) Effective July 1, 2003, teaching assistants, educational assistants, bilingual or bicultural school-home assistants, school psychologists, psychological examiners, speech pathologists, athletic health care trainers, alternative school work study assistants, alternative school educational or supportive services specialists, alternative school project coordinators, and communications aides in the department of education;
500500
501501 (C) The special assistant to the state librarian and one secretary for the special assistant to the state librarian; and
502502
503503 (D) Members of the faculty of the [University] university of Hawaii, including research workers, extension agents, personnel engaged in instructional work, and administrative, professional, and technical personnel of the university;
504504
505505 (12) Employees engaged in special, research, or demonstration projects approved by the governor;
506506
507507 (13) (A) Positions filled by inmates, patients of state institutions, and persons with severe physical or mental disabilities participating in the work experience training programs;
508508
509509 (B) Positions filled with students in accordance with guidelines for established state employment programs; and
510510
511511 (C) Positions that provide work experience training or temporary public service employment that are filled by persons entering the workforce or persons transitioning into other careers under programs such as the federal Workforce Investment Act of 1998, as amended, or the Senior Community Service Employment Program of the Employment and Training Administration of the United States Department of Labor, or under other similar state programs;
512512
513513 (14) A custodian or guide at Iolani Palace, the Royal Mausoleum, and Hulihee Palace;
514514
515515 (15) Positions filled by persons employed on a fee, contract, or piecework basis, who may lawfully perform their duties concurrently with their private business or profession or other private employment and whose duties require only a portion of their time, if it is impracticable to ascertain or anticipate the portion of time to be devoted to the service of the State;
516516
517517 (16) Positions of first deputies or first assistants of each department head appointed under or in the manner provided in section 6, article V, of the Hawaii State Constitution; [three] two additional deputies or assistants either in charge of the highways[,] and harbors[, and airports] divisions or other functions within the department of transportation as may be assigned by the director of transportation, with the approval of the governor; one additional deputy in the department of human services either in charge of welfare or other functions within the department as may be assigned by the director of human services; four additional deputies in the department of health, each in charge of one of the following: behavioral health, environmental health, hospitals, and health resources administration, including other functions within the department as may be assigned by the director of health, with the approval of the governor; two additional deputies in charge of the law enforcement programs, administration, or other functions within the department of law enforcement as may be assigned by the director of law enforcement, with the approval of the governor; three additional deputies each in charge of the correctional institutions, rehabilitation services and programs, and administration or other functions within the department of corrections and rehabilitation as may be assigned by the director of corrections and rehabilitation, with the approval of the governor; two administrative assistants to the state librarian; and an administrative assistant to the superintendent of education;
518518
519519 (17) Positions specifically exempted from this part by any other law; provided that:
520520
521521 (A) Any exemption created after July 1, 2014, shall expire three years after its enactment unless affirmatively extended by an act of the legislature; and
522522
523523 (B) All of the positions defined by paragraph (9) shall be included in the position classification plan;
524524
525525 (18) Positions in the state foster grandparent program and positions for temporary employment of senior citizens in occupations in which there is a severe personnel shortage or in special projects;
526526
527527 (19) Household employees at the official residence of the president of the [University] university of Hawaii;
528528
529529 (20) Employees in the department of education engaged in the supervision of students during meal periods in the distribution, collection, and counting of meal tickets, and in the cleaning of classrooms after school hours on a less than half-time basis;
530530
531531 (21) Employees hired under the tenant hire program of the Hawaii public housing authority; provided that no more than twenty-six per cent of the authority's workforce in any housing project maintained or operated by the authority shall be hired under the tenant hire program;
532532
533533 (22) Positions of the federally funded expanded food and nutrition program of the [University] university of Hawaii that require the hiring of nutrition program assistants who live in the areas they serve;
534534
535535 (23) Positions filled by persons with severe disabilities who are certified by the state vocational rehabilitation office that they are able to perform safely the duties of the positions;
536536
537537 (24) The sheriff;
538538
539539 (25) A gender and other fairness coordinator hired by the judiciary;
540540
541541 (26) Positions in the Hawaii National Guard youth and adult education programs;
542542
543543 (27) In the Hawaii state energy office in the department of business, economic development, and tourism, all energy program managers, energy program specialists, energy program assistants, and energy analysts;
544544
545545 (28) Administrative appeals hearing officers in the department of human services;
546546
547547 (29) In the Med-QUEST division of the department of human services, the division administrator, finance officer, health care services branch administrator, medical director, and clinical standards administrator;
548548
549549 (30) In the director's office of the department of human services, the enterprise officer, information security and privacy compliance officer, security and privacy compliance engineer, security and privacy compliance analyst, information technology implementation manager, assistant information technology implementation manager, resource manager, community or project development director, policy director, special assistant to the director, and limited English proficiency project manager or coordinator;
550550
551551 (31) The Alzheimer's disease and related dementia services coordinator in the executive office on aging;
552552
553553 (32) In the Hawaii emergency management agency, the executive officer, public information officer, civil defense administrative officer, branch chiefs, and emergency operations center state warning point personnel; provided that for state warning point personnel, the director shall determine that recruitment through normal civil service recruitment procedures would result in delay or noncompliance;
554554
555555 (33) The executive director and seven full-time administrative positions of the school facilities authority;
556556
557557 (34) Positions in the Mauna Kea stewardship and oversight authority;
558558
559559 (35) In the office of homeland security of the department of law enforcement, the statewide interoperable communications coordinator;
560560
561561 (36) In the social services division of the department of human services, the business technology analyst;
562562
563563 (37) The executive director and staff of the 911 board;
564564
565565 [[](38)[]]Senior software developers in the department of taxation;
566566
567567 [[](39)[]]In the department of law enforcement, five Commission on Accreditation for Law Enforcement Agencies, Inc., coordinator positions;
568568
569569 [[](40)[]]The state fire marshal; [and
570570
571571 [](41)[]]The administrator for the law enforcement standards board[.]; and
572572
573573 (42) The chief executive officer of the Hawaii airports corporation, all other executive officers the chief executive officer may appoint pursuant to section ‑3(d), and positions that the chief executive officer is authorized to fill by appointing specially qualified personnel pursuant to section ‑3(d).
574574
575575 The director shall determine the applicability of this section to specific positions.
576576
577577 Nothing in this section shall be deemed to affect the civil service status of any incumbent as it existed on July 1, 1955."
578578
579579 SECTION 10. Section 84-17, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:
580580
581581 "(d) The financial disclosure statements of the following persons shall be public records and available for inspection and duplication:
582582
583583 (1) The governor, lieutenant governor, members of the legislature, candidates for and delegates to the constitutional convention, trustees of the office of Hawaiian affairs, and candidates for state elective offices;
584584
585585 (2) The directors of the state departments and their deputies, regardless of the titles by which the foregoing persons are designated; provided that with respect to the department of the attorney general, the foregoing shall apply only to the attorney general and the first deputy attorney general;
586586
587587 (3) The administrative director of the State;
588588
589589 (4) The president, vice presidents, assistant vice presidents, chancellors, members of the board of regents, and provosts of the [University] university of Hawaii;
590590
591591 (5) The members of the board of education, superintendent, deputy superintendent, state librarian, and deputy state librarian of the department of education;
592592
593593 (6) The administrative director and deputy director of the courts;
594594
595595 (7) The administrator and assistant administrator of the office of Hawaiian affairs; and
596596
597597 (8) The members of the following state boards, commissions, and agencies:
598598
599599 (A) The board of directors of the agribusiness development corporation established under section 163D-3;
600600
601601 (B) The board of agriculture established under section 26-16;
602602
603603 (C) The state ethics commission established under section 84-21;
604604
605605 (D) The Hawaii community development authority established under section 206E-3;
606606
607607 (E) The Hawaiian homes commission established under the Hawaiian Homes Commission Act of 1920, as amended, and section 26-17;
608608
609609 (F) The board of directors of the Hawaii housing finance and development corporation established under section 201H-3;
610610
611611 (G) The board of land and natural resources established under section 171-4;
612612
613613 (H) The state land use commission established under section 205-1;
614614
615615 (I) The legacy land conservation commission established under section 173A-2.4;
616616
617617 (J) The natural area reserves system commission established under section 195-6;
618618
619619 (K) The board of directors of the natural energy laboratory of Hawaii authority established under section 227D-2;
620620
621621 (L) The board of directors of the Hawaii public housing authority established under section 356D‑3;
622622
623623 (M) The public utilities commission established under section 269-2;
624624
625625 (N) The commission on water resource management established under section 174C-7; [and]
626626
627627 (O) The stadium authority established under section 109-1[.]; and
628628
629629 (P) The board of directors and chief executive officer of the Hawaii airports corporation established under section -2."
630630
631631 SECTION 11. Section 89C-1.5, Hawaii Revised Statutes, is amended by amending the definition of "appropriate authority" to read as follows:
632632
633633 ""Appropriate authority" means the governor, the respective mayors, the chief justice of the supreme court, the board of education, the board of regents, the state public charter school commission, the Hawaii health systems corporation board, the auditor, the ombudsman, the board of directors of the Hawaii airports corporation, and the director of the legislative reference bureau. These individuals or boards may make adjustments for their respective excluded employees."
634634
635635 SECTION 12. Section 171-2, Hawaii Revised Statutes, is amended to read as follows:
636636
637637 "§171-2 Definition of public lands. "Public lands" means all lands or interest therein in the State classed as government or crown lands previous to August 15, 1895, or acquired or reserved by the government upon or subsequent to that date by purchase, exchange, escheat, or the exercise of the right of eminent domain, or in any other manner; including lands accreted after May 20, 2003, and not otherwise awarded, submerged lands, and lands beneath tidal waters that are suitable for reclamation, together with reclaimed lands that have been given the status of public lands under this chapter, except:
638638
639639 (1) Lands designated in section 203 of the Hawaiian Homes Commission Act, 1920, as amended;
640640
641641 (2) Lands set aside pursuant to law for the use of the United States;
642642
643643 (3) Lands being used for roads and streets;
644644
645645 (4) Lands to which the United States relinquished the absolute fee and ownership under section 91 of the Hawaiian Organic Act before the admission of Hawaii as a state of the United States unless subsequently placed under the control of the board of land and natural resources and given the status of public lands in accordance with the state constitution, the Hawaiian Homes Commission Act, 1920, as amended, or other laws;
646646
647647 (5) Lands to which the [University] university of Hawaii holds title;
648648
649649 (6) Non-ceded lands set aside by the governor to the Hawaii housing finance and development corporation or lands to which the Hawaii housing finance and development corporation in its corporate capacity holds title;
650650
651651 (7) Lands to which the Hawaii community development authority in its corporate capacity holds title;
652652
653653 (8) Lands set aside by the governor to the Hawaii public housing authority or lands to which the Hawaii public housing authority in its corporate capacity holds title;
654654
655655 (9) Lands to which the department of agriculture holds title by way of foreclosure, voluntary surrender, or otherwise, to recover moneys loaned or to recover debts otherwise owed the department under chapter 167;
656656
657657 (10) Lands that are set aside by the governor to the Aloha Tower development corporation, lands leased to the Aloha Tower development corporation by any department or agency of the State, or lands to which the Aloha Tower development corporation holds title in its corporate capacity;
658658
659659 (11) Lands that are set aside by the governor to the agribusiness development corporation, lands leased to the agribusiness development corporation by any department or agency of the State, or lands to which the agribusiness development corporation in its corporate capacity holds title;
660660
661661 (12) Lands to which the Hawaii technology development corporation in its corporate capacity holds title;
662662
663663 (13) Lands to which the department of education holds title;
664664
665665 (14) Lands to which the stadium authority holds title;
666666
667667 (15) Lands to which the school facilities authority holds title; [and]
668668
669669 (16) Lands that are set aside by the governor to the department of transportation, lands leased to the department of transportation by any department or agency of the State, or lands to which the department of transportation holds title; and
670670
671671 (17) Lands to which the Hawaii airports corporation holds title;
672672
673673 provided that, except as otherwise limited under federal law and except for state land used as an airport as defined in section 262-1, public lands shall include the air rights over any portion of state land upon which a county mass transit project is developed after July 11, 2005; provided further that if the lands pursuant to paragraph (6) are no longer needed for housing finance and development purposes, the lands shall be returned to the agency from which they were obtained; provided further that if the lands pursuant to paragraph (14) are no longer needed for the stadium development district or related purposes, the lands shall be returned to the public land trust administered by the department[.]; provided further that lands to which the Hawaii airports corporation holds title shall be considered "public lands" for the purpose of accounting of all receipts from lands that are described in section 5(f) of the Admission Act, Public Law 86-3, for the prior fiscal year, pursuant to section 5 of Act 178, Session Laws of Hawaii 2006."
674674
675675 SECTION 13. Section 261-7, Hawaii Revised Statutes, is amended by adding two new definitions to be appropriately inserted and to read as follows:
676676
677677 ""Chief executive officer" means the chief executive officer of the Hawaii airports corporation.
678678
679679 "Corporation" means the Hawaii airports corporation."
680680
681681 SECTION 14. Section 261-7, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:
682682
683683 "(e) [The department may fix and regulate, from time to time, reasonable landing fees for aircraft, including the imposition of landing surcharges or differential landing fees, and other reasonable charges for the use and enjoyment of the airports and the services and facilities furnished by the department in connection therewith, including the establishment of a statewide system of airports landing fees, a statewide system of airports support charges, and joint use charges for the use of space shared by users, which fees and charges may vary among different classes of users such as foreign carriers, domestic carriers, inter-island carriers, air taxi operators, helicopters, and such other classes as may be determined by the director, for the purpose of meeting the expenditures of the statewide system of airports set forth in section 261-5(a), which includes expenditures for capital improvement projects approved by the legislature.] The corporation shall fix, impose, prescribe, and collect rates, rentals, fees, or charges for the lease, use, and services of its airport facilities in amounts sufficient to pay the costs of the operation, maintenance, and repair, if any, and the required payments of the principal of, and interest on, all bonds issued or assumed by the corporation and reserves therefor.
684684
685685 In setting airports rates and charges, including landing fees, the [director] chief executive officer may enter into contracts, leases, licenses, and other agreements with aeronautical users of the statewide system of airports containing such terms, conditions, and provisions as the [director] chief executive officer deems advisable.
686686
687687 If the [director] chief executive officer has not entered into contracts, leases, licenses, and other agreements with any or fewer than all of the aeronautical users of the statewide system of airports prior to the expiration of an existing contract, lease, license, or agreement, the [director] chief executive officer shall set and impose rates, rentals, fees, and charges pursuant to this subsection without regard to the requirements of chapter 91; provided that a public informational hearing shall be held on the rates, rentals, fees, and charges.
688688
689689 The [director] chief executive officer shall develop rates, rentals, fees, and charges in accordance with a residual methodology so that the statewide system of airports shall be, and always remain, self-sustaining. The rates, rentals, fees, and charges shall be set at [such] levels as to produce revenues [which,] that, together with aviation fuel taxes, shall be at least sufficient to meet the expenditures of the statewide system of airports set forth in section 261-5(a), including expenditures for capital improvement projects approved by the legislature, and to comply with covenants and agreements with holders of airport revenue bonds.
690690
691691 The [director] chief executive officer may develop and formulate methodology in setting the various rates, rentals, fees, and charges imposed and may determine usage of space, estimate landed weights, and apply [such] the portion of nonaeronautical revenue deemed appropriate in determining the rates, rentals, fees, and charges applicable to aeronautical users of the statewide system of airports.
692692
693693 The rates, rentals, fees, and charges determined by the [director] chief executive officer in the manner set forth in this subsection shall be those charges payable by the aeronautical users for the periods immediately following the date of expiration of the existing contract, lease, license, or agreement. If fees are established pursuant to this section, the [department] corporation shall prepare a detailed report on the circumstances and rates and charges that have been established, and shall submit the report to the legislature no later than twenty days prior to the convening of the next regular session.
694694
695695 If a schedule of rates, rentals, fees, and charges developed by the [director] chief executive officer in accordance with this section is projected by the [department] corporation to produce revenues [which,] that, together with aviation fuel taxes, will be in excess of the amount required to meet the expenditures of the statewide system of airports set forth in section 261-5(a), including expenditures for capital improvement projects approved by the legislature, and to comply with covenants and agreements with holders of airport revenue bonds, the [department] corporation shall submit the schedule of rates, rentals, fees, and charges to the legislature prior to the convening of the next regular session of the legislature. Within forty-five days after the convening of the regular session, the legislature may disapprove any schedule of rates, rentals, fees, and charges required to be submitted to it by this section by concurrent resolution. If no action is taken by the legislature within the forty-five-day period the schedule of rates, rentals, fees, and charges shall be deemed approved. If the legislature disapproves the schedule within the forty-five-day period, the [director] chief executive officer shall develop a new schedule of rates, rentals, fees, and charges in accordance with this section within seventy-five days of the disapproval. Pending the development of a new schedule of rates, rentals, fees, and charges, the schedule submitted to the legislature shall remain in force and effect.
696696
697697 Notwithstanding any other provision of law to the contrary, the [department] corporation may waive landing fees and other aircraft charges established under this section at any airport owned or controlled by the State whenever:
698698
699699 (1) The governor declares a state of emergency; and
700700
701701 (2) The [department] corporation determines that the waiver of landing fees and other charges for the aircraft is consistent with assisting in the delivery of humanitarian relief to disaster-stricken areas of the State."
702702
703703 SECTION 15. Section 262-1, Hawaii Revised Statutes, is amended by adding two new definitions to be appropriately inserted and to read as follows:
704704
705705 ""Chief executive officer" means the chief executive officer of the Hawaii airports corporation.
706706
707707 "Corporation" means the Hawaii airports corporation."
708708
709709 SECTION 16. On and after the transfer completion date established by the Hawaii airports corporation in section 18(b) of this Act, and until the revisor of statutes makes the amendments to applicable provisions in chapters 102, 261, 261D, and 262, Hawaii Revised Statutes, described in this section, every reference to the department of transportation or "department" or its role in awarding concessions in chapters 102, 261, 261D, and 262, Hawaii Revised Statutes, shall be a reference to the Hawaii airports corporation, and every reference to the director of transportation or "director" or the director's role in awarding concessions in chapters 102, 261, 261D, and 262, Hawaii Revised Statutes, shall be a reference to the chief executive officer of the Hawaii airports corporation. After the transfer completion date but no later than when the subsequent supplements to the Hawaii Revised Statutes are prepared, the revisor of statutes shall make appropriate changes, including, without limitation:
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711711 (1) Substituting the term "chief executive officer" for the terms "director" or "director of transportation", the term "Hawaii airports corporation" for the term "department of transportation", and the term "corporation" for the term "department";
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713713 (2) Deleting the definition of "director", in chapters 261 and 262, Hawaii Revised Statutes; and
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715715 (3) Deleting the definition of "department" in sections 261-1 and 262-1, Hawaii Revised Statutes.
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717717 SECTION 17. The Hawaii airports corporation shall succeed to the jurisdiction, powers, and responsibilities of the department of transportation over aeronautics and airports, including all of the functions relating to airports and aeronautics performed by the department and its airports division, on the transfer completion date published by the Hawaii airports corporation pursuant to section 18(b) of this Act, which date shall be no later than December 31, 2028.
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719719 On the transfer completion date, the airports corporation shall assume from the department of transportation:
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721721 (1) That:
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723723 (A) Certain Certificate of the Director of Transportation Providing for the Issuance of State of Hawaii Airports System Revenue Bonds dated as of May 1, 1969, relating to certain revenue bonds and other obligations;
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725725 (B) Certain Indenture of Trust dated as of December 1, 2013, between the department of transportation and U.S. Bank National Association relating to certain certificates of participation; and
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727727 (C) Certain Indenture of Trust dated as of August 1, 2014, between the department of transportation and MUFG Union Bank, N.A., relating to certain customer facility charge revenue bonds, each as supplemented and amended to date; and
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729729 (2) The bonds, notes, and other obligations of the department of transportation outstanding under, as well as the covenants, restrictions, and other requirements set forth in, those documents.
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731731 Thereafter, to the extent that the Hawaii airports corporation is authorized under this Act to exercise powers and duties that are also granted to other departments, offices, or boards of the State, with respect to airports and aeronautical facilities, the Hawaii airports corporation shall exclusively exercise those powers and perform those duties.
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733733 SECTION 18. (a) Within ninety days of the effective date of this Act, the governor shall designate a representative who shall facilitate the corporation's orderly succession to the jurisdiction, powers, functions, rights, benefits, obligations, assets, liabilities, funds, accounts, contracts, and all other things currently held, used, incurred, or performed by the department of transportation, its director and staff, and its airports division, in administering and exercising the authority and fulfilling the responsibilities authorized or conferred upon the department of transportation and the director of transportation, by chapters 102, 261, 261D, and 262, Hawaii Revised Statutes.
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735735 Within one hundred eighty days of the effective date of this Act, the governor shall appoint the members of the board of directors of the Hawaii airports corporation.
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737737 To facilitate the corporation's timely assumption of the department of transportation's authority and responsibilities, including all of the department's associated bonds, notes, and obligations as described in paragraph (7), the department of transportation, the department of accounting and general services, the department of human resources development, the state procurement office, and any other state department or agency shall, if requested by the corporation, enter into a memorandum of understanding with the corporation to:
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739739 (1) Provide administrative support services for the corporation pending the transfer of employees from the department of transportation to the Hawaii airports corporation pursuant to section 22 of this Act;
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741741 (2) Develop a policy and set of robust procurement procedures that foster accountability, transparency and oversight of contracts, to include compliance with federal procurement requirements;
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743743 (3) Assist the corporation with the organization of its human resources development functions, including establishing:
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745745 (A) A human resources office;
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747747 (B) The corporation's civil service and civil service positions, and the classification system, merit appeals board, recruitment system, performance appraisal system, and the administrative rules, policies, standards, and procedures, including internal complaint procedures, adopted to support its civil service; and
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749749 (C) The corporation's exempt and excluded positions, and guidelines, procedures, and policies for filling them, and compensating the officers and employees who fill them;
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751751 (4) Assist the corporation in establishing its accounting, budgeting, fund management, and communication and electronic information systems, and creating appropriate interfaces between the corporation's accounting, budgeting, fund management, communication and electronic information systems, and those of the department of transportation, and other state agencies;
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753753 (5) Assist the corporation in identifying the plans and reports that departments and agencies administratively attached to a department are required to prepare for the governor, the legislature, or another state department or agency with respect to aeronautics or the State's airport system; determining whether those plans and reports have been prepared and will be transferred to the corporation on the transfer completion date; and preparing the same for the corporation, if they do not exist;
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755755 (6) Expeditiously transfer or otherwise facilitate the corporation's acquisition or assumption of all of the powers, functions, rights, benefits, obligations, assets, funds, accounts, contracts, and all other things held, used, incurred, or performed by the department of transportation, its director and staff, and its airports division, in exercising the authority and fulfilling and administering the responsibilities conferred upon the department of transportation and the director of transportation by chapters 102, 261, 261D, and 262, Hawaii Revised Statutes;
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757757 (7) Assign and transfer:
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759759 (A) That certain Certificate of the Director of Transportation Providing for the Issuance of State of Hawaii Airports System Revenue Bonds dated as of May 1, 1969, relating to certain revenue bonds and other obligations;
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761761 (B) That certain Indenture of Trust dated as of December 1, 2013, between the department of transportation and U.S. Bank National Association relating to certain certificates of participation; and
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763763 (C) That certain Indenture of Trust dated as of August 1, 2014, between the department of transportation and MUFG Union Bank, N.A., relating to certain customer facility charge revenue bonds, each as supplemented and amended to date; the assumption of all indebtedness of the department of transportation heretofore issued and outstanding thereunder; and the adoption of policies and procedures designed to ensure continuing compliance with the terms thereof for so long as they are applicable; and
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765765 (8) Reimburse each cooperating department or agency for the cost of services provided under the memorandum of understanding.
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767767 (b) As soon as feasible, the Hawaii airports corporation, with the concurrence of the director of transportation and the governor, shall establish the transfer completion date, which shall be no later than December 31, 2028, and publish notice of the transfer completion date by:
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769769 (1) Publishing the notice in a daily publication of statewide circulation pursuant to section 1-28.5, Hawaii Revised Statutes;
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771771 (2) Posting a copy of the notice on an electronic calendar on a website maintained by the State;
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773773 (3) Providing a copy of the notice to the department of transportation, the Secretaries of the United States Department of Transportation and Department of Defense, the head of the Federal Aviation Administration, and the head of every other state department; and
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775775 (4) Posting the notice prominently at every airport and air navigation facility in the State.
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777777 All notices shall be published, distributed, or posted at least ninety days before the transfer completion date.
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779779 SECTION 19. It is the intent of this Act not to jeopardize the receipt of any federal aid nor to impair any existing federal income tax exemption to, security interest of, or obligation of the State or any agency thereof to the holders of any bonds or other obligations issued by the State or by any department or agency of the State, and to the extent, and only to the extent necessary to effectuate this intent, the governor may modify the strict provisions of this Act but shall promptly report any modification with reasons therefor to the legislature at its next session thereafter for review by the legislature.
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781781 SECTION 20. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
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783783 The department of transportation shall be responsible for any and all obligations incurred by the department or its airports division in connection with the department's exercise of the authority and performance of the duties and responsibilities conferred upon it and its director by chapters 102, 261, 261D, and 262, Hawaii Revised Statutes, until the time that the obligations, including any accounts payable, accrued paid time off, debt, capital leases, and other obligations incurred before the transfer completion date, have been assumed by the Hawaii airports corporation, which shall not occur prior to the transfer completion date. All collective bargaining disputes or claims against the department of transportation grounded in an act or omission, or an event that occurred prior to the transfer completion date shall remain the responsibility of the department of transportation. All liabilities arising out of the Hawaii airports corporation's exercise of the authority and performance of the duties and responsibilities conferred upon it and its chief executive officer by chapters 102, 261, 261D, and 262, Hawaii Revised Statutes, after the transfer completion date shall be the responsibility of the Hawaii airports corporation. The assumption by the Hawaii airports corporation of the bonds, notes, or other obligations of the department of transportation relating to the State's airports system shall be subject to the terms and provisions of any certificate, indenture, or resolution securing those bonds, notes, or other obligations. On the transfer completion date, the Hawaii airports corporation shall assume responsibility for all rights, duties, penalties, and proceedings of the department of transportation related to the State's airports system.
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785785 SECTION 21. The State of Hawaii pledges to and agrees with the holders of the bonds, notes, or other obligations of the department of transportation being assumed by the Hawaii airports corporation on the transfer completion date and the holders of the bonds, notes, or other obligations of the airports corporation issued pursuant to chapters 37D or 39, Hawaii Revised Statutes, that the State shall not limit or alter the rights and powers vested in the Hawaii airports corporation so as to impair the terms of any contract made or assumed by the airports corporation with holders or in any way impair the rights and remedies of holders until bonds, notes, or other obligations, together with interest thereon, with interest on any unpaid installments of interest, and all costs and expenses in connection with any action or proceedings by or on behalf of holders, are fully met and discharged. In addition, the State pledges to and agrees with the holders of the bonds, notes, or other obligations of the department of transportation being assumed by the Hawaii airports corporation on the transfer completion date and the holders of the bonds, notes, or other obligations of the airports corporation issued pursuant to chapter 37D or 39, Hawaii Revised Statutes, that the State shall not limit or alter the basis on which the revenues or user taxes securing any such bonds, notes, or other obligations issued or assumed by the airports corporation are to be received by the airports corporation, or the rights of the airports corporation to the use of the funds, so as to impair the terms of any contract securing the same. The Hawaii airports corporation is authorized to include these pledges and agreements of the State in any contract with the holders of bonds, notes, or other obligations issued pursuant to chapter 37D or 39, Hawaii Revised Statutes.
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787787 SECTION 22. The Hawaii airports corporation shall recognize all bargaining units and collective bargaining agreements existing at the time of transfer to the corporation. All employees who are subject to chapter 76, Hawaii Revised Statutes, and occupy civil service positions and whose functions are transferred to the Hawaii airports corporation by this Act shall retain their civil service status, whether permanent or temporary. The employees shall be transferred to the Hawaii airports corporation without loss of salary, seniority (except as prescribed by applicable collective bargaining agreements), retention points, prior service credits, any vacation and sick leave credits previously earned, and other rights, benefits, and privileges, in accordance with state personnel laws and this Act; provided that the employees meet applicable requirements for the class or position to which transferred or appointed, as applicable.
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789789 Any employee who, prior to this Act, is a member of a bargaining unit, shall remain in that bargaining unit when future collective bargaining agreements are negotiated.
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791791 Any employee who, prior to this Act, is exempt from civil service and is transferred to the Hawaii airports corporation as a consequence of this Act may retain the employee's exempt status, but shall not be appointed to a civil service position as a consequence of this Act. An exempt employee who is transferred by this Act shall not suffer any loss of prior service credit, vacation or sick leave credits previously earned, or other employee benefits or privileges as a consequence of this Act. The chief executive officer of the Hawaii airports corporation may prescribe the duties and qualifications of these employees and fix their salaries without regard to chapter 76, Hawaii Revised Statutes.
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793793 No employee included in a collective bargaining unit as an employee of the department of transportation shall be laid off as a consequence of this Act.
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795795 The department of transportation and the Hawaii airports corporation shall require every employer doing business at the airports pursuant to a concession contract or subcontract entered into with the airports corporation after the effective date of this section to retain as its employees for a minimum period of one hundred twenty days, during which they may be terminated only for cause, workers who are employed by the previous concessionaire or who were employed at the end of that concessionaire's contract and who have been displaced. The employer shall retain such workers in the same equivalent job classifications as they held under the previous concessionaire and if more workers are eligible for retention than there are positions in the new or expanded concession, the employer shall give such workers preference for future employment in order of their seniority, as determined by their total length of service at the airports under one or more concessionaires.
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797797 SECTION 23. On or no more than ninety days after the transfer completion date, all appropriations, records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by the department of transportation relating to the functions transferred to the Hawaii airports corporation shall be transferred with the functions to which they relate.
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799799 SECTION 24. All rules, policies, procedures, guidelines, and other material adopted or developed by the department of transportation to implement provisions of the Hawaii Revised Statutes that are reenacted or made applicable to the Hawaii airports corporation by this Act shall remain in full force and effect on and after the transfer completion date established pursuant to section 18(b) of this Act, until amended or repealed by the Hawaii airports corporation pursuant to chapter 91, Hawaii Revised Statutes. In the interim, every reference to the department of transportation or director of transportation in those rules, policies, procedures, guidelines, and other material is amended to refer to the Hawaii airports corporation or chief executive officer of the Hawaii airports corporation, as appropriate.
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801801 SECTION 25. All deeds, executive orders, leases, contracts, loans, agreements, permits, or other documents executed or entered into by or on behalf of the department of transportation, pursuant to the provisions of the Hawaii Revised Statutes, that are reenacted or made applicable to the Hawaii airports corporation by this Act shall remain in full force and effect. On the transfer completion date established pursuant to section 18(b) of this Act, every reference to the department of transportation in those deeds, executive orders, leases, contracts, loans, agreements, permits or other documents shall be construed as a reference to the Hawaii airports corporation or the board of directors of the airports corporation.
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803803 SECTION 26. There is appropriated out of the airport revenue fund the sum of $3,000,000 or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 to effect the transfer of functions from the department of transportation to the Hawaii airports corporation required by this Act.
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805805 The sums appropriated shall be expended by the Hawaii airports corporation to implement the provisions of this Act.
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807807 SECTION 27. 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.
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809809 SECTION 28. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
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811811 SECTION 29. This Act shall take effect on July 1, 2025; provided that section 14 of this Act shall take effect upon the satisfaction and discharge of:
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813813 (1) That certain Certificate of the Director of Transportation Providing for the Issuance of State of Hawaii Airports System Revenue Bonds dated as of May 1, 1969;
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815815 (2) That certain Indenture of Trust dated as of December 1, 2013, between the department of transportation and U.S. Bank National Association; and
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819819 (3) All obligations issued and outstanding under the Certificate and Indenture.
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823823 INTRODUCED BY: _____________________________
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825825 INTRODUCED BY:
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827827 _____________________________
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877877 Report Title: DOT; Hawaii Airports Corporation; Establishment; Transfer; Appropriations Description: Establishes the Hawaii Airports Corporation (HAC)to assume the authority, functions, and duties of the Department of Transportation related to airports and aeronautics. Makes HAC subject to chapters 103D and 104, HRS. Provides for project labor agreements. Appropriates funds for the transfer of functions from DOT to HAC. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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885885 Report Title:
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887887 DOT; Hawaii Airports Corporation; Establishment; Transfer; Appropriations
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891891 Description:
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893893 Establishes the Hawaii Airports Corporation (HAC)to assume the authority, functions, and duties of the Department of Transportation related to airports and aeronautics. Makes HAC subject to chapters 103D and 104, HRS. Provides for project labor agreements. Appropriates funds for the transfer of functions from DOT to HAC.
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901901 The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.