PART I

SECTION 1. Chapter 211F, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part . Public-Private Partnership initiative

§211F-A Purpose. The purpose of this part is to create a vehicle and a process to use the skills and assets of the public and private sectors to deliver services and facilities for the economic, environmental, and social benefit of the people of Hawaii. This part establishes the public-private partnership initiative and the public-private partnership advisory board to administer appropriate and culturally sensitive projects. The advisory board shall coordinate and administer projects, while ensuring that resources are maintained for the people of Hawaii. The advisory board shall identify projects that are suitable under this part, carry out appropriate analyses, enter into public-private agreements, and provide leadership for the facilitation of financing, improvement, or enhancement of appropriate facilities, operations, and property.

§211F-B Definitions. As used in this part, unless the context clearly requires otherwise:

"Advisory board" means the public-private partnership advisory board.

"Cooperative agreement" means an instrument, such as a contract, compact, memorandum of understanding, or agreement, that is signed and binding upon all parties to the agreement.

"Initiative" means the public-private partnership initiative.

"Management rights" means the authority to control and manage projects.

"Project" means a specific undertaking related to the operations and properties of any public agency, including but not limited to:

(1) Development of plans for a public agency; and

(2) Planning, improvement, construction, rehabilitation, alteration, maintenance, or repair of real property or energy generation.

"Qualified person" means any individual, partnership, corporation, not-for-profit organization, or public agency possessing the competence, expertise, experience, and resources, including financial, personnel, and tangible qualifications, as deemed desirable by the advisory board.

§211F-C Public-private partnership initiative; established. The corporation shall establish the public-private partnership initiative. Under the initiative, the advisory board shall:

(1) Identify projects that are suitable under this part with the approval of the governor;

(2) Conduct analyses, as appropriate;

(3) Enter into public-private partnership agreements, as appropriate; and

(4) Provide the leadership for public-private partnership projects.

§211F-D Public-private partnership advisory board; members; powers. (a) The advisory board shall consist of nine voting members and one non-voting member. The voting members shall include:

(1) The comptroller, the first deputy to the comptroller, or comptroller's designated representative;

(2) The director of finance, or the director's designated representative;

(3) The director of business, economic development, and tourism, or the director's designated representative;

(4) One member to be appointed by the governor from a list provided by the speaker of the house of representatives, in accordance with section 26-34;

(5) One member to be appointed by the governor from a list provided by the president of the senate, in accordance with section 26-34; and

(6) Four members, one from the county of Kauai, one from the city and county of Honolulu, one from the county of Maui, and one from the county of Hawaii, each selected by the governor from a list of three nominees submitted by each county council.

The non-voting member shall be the aha moku advisory committee member of the moku in which the project is sited.

The members appointed by the governor at the recommendation of the speaker of the house of representatives and the president of the senate shall possess sufficient knowledge, experience, and proven expertise in small and large businesses within the development or recreation industries, banking, real estate, finance, promotion, marketing, or management.

(b) The term of office of the members appointed by the speaker of the house of representatives and the president of the senate shall be four years each.

(c) Five members shall constitute a quorum and a minimum of three affirmative votes shall be necessary for all actions of the board.

(d) The advisory board, through the chairperson of the board of the corporation, may appoint officers, agents, and employees; prescribe their duties and qualifications; and fix their salaries, without regard to chapter 76.

(e) Except as otherwise limited by this chapter, the advisory board may:

(1) Make and alter bylaws for its organization and internal management;

(2) Adopt rules under chapter 91 necessary to implement this part in connection with its projects;

(3) Make and execute contracts, leases, and all other instruments necessary or convenient for the exercise of its powers and functions under this part;

(4) Manage projects by itself or in partnership with qualified persons or other governmental agencies;

(5) Receive, examine, and determine the acceptability of applications of qualified persons for public-private partnerships;

(6) Coordinate its activities with any federal or state programs;

(7) Provide advisory, consultative, training, and educational services and technical assistance to any person, partnership, or corporation, either public or private, to carry out the purposes of this part and engage the services of consultants on a contractual basis for rendering professional and technical assistance and advice;

(8) Procure insurance against any loss in connection with its property and other assets and operations in amounts and from insurers as it deems desirable;

(9) Accept gifts or grants in any form from any public agency or any other source;

(10) Coordinate with any public agency;

(11) Recommend to the appropriate public agency the acquisition of any privately owned real or personal property that may be appropriate for the purposes of this part; and

(12) Do all things necessary or proper to carry out the purposes of this part.

§211F-E Projects and plans. (a) The advisory board may develop plans and implement projects on behalf of public agencies, as appropriate.

(b) The advisory board may enter into a cooperative agreement with any public agency to implement projects on behalf of the public agency.

(c) The advisory board may enter into cooperative agreements with persons or public agencies when the powers, services, and capabilities of the persons or agencies are deemed necessary and appropriate.

(d) Prior to implementing any project, the advisory board shall submit the proposed plan for the project, together with any amendments, to and obtain the prior approval of the board or executive of any public agency affected.

§211F-F Approval of projects. All public-private partnership projects developed by the advisory board shall be approved by the corporation.

§211F-G Transfer of management rights. (a) Notwithstanding chapter 171 or any other provision to the contrary, any public agency may transfer, subject to the approval of the advisory board, management rights for projects under its jurisdiction to the advisory board for purposes of this part.

(b) If the advisory board finds that projects under the control and management of any public agency are suitable for its purposes under this part, the advisory board may lease properties from or agree to manage the properties of the agency having jurisdiction, upon terms and conditions as agreed to by the parties and approved by the governor.

(c) Notwithstanding subsection (b) to the contrary, no property shall be leased to the advisory board if the lease would impair any covenant between the State or any county, or any department or board thereof, and the holders of bonds issued by the State or the county, or any department or board thereof.

§211F-H Public-private partnership revenues. Any revenues generated from public-private partnership projects and plans developed pursuant to this part and received by:

(1) The advisory board;

(2) The public agency on whose behalf the advisory board is implementing the project; or

(3) The private partner;

shall be deposited into the general fund.

§211F-I Exemption from taxation. The initiative shall not be required to pay state taxes of any kind.

§211F-J Application of chapter. The advisory board and all projects implemented under this part shall comply with all state laws.

§211F-K Reports. The advisory board shall submit a complete and detailed annual report of its plans and activities as follows:

(1) To the governor no later than twenty days prior to the convening of each regular legislative session; and

(2) To the legislature, no later than sixty days after the submission of the report as specified in paragraph (1)."

PART II

SECTION 2. After the adoption of rules pursuant to section 211F-D, Hawaii Revised Statutes, the public-private partnership advisory board shall initiate pilot projects selected by the governor.

SECTION 3. The public-private partnership advisory board shall neither plan nor implement any projects other than the pilot projects nor enter into any agreements or contracts related to the planning or implementation of any projects other than the pilot projects identified by the governor.

PART III

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2015-2016 and the same sum or so much thereof as may be necessary for fiscal year 2016-2017 for the establishment and operation of the public-private partnership initiative pursuant to part I of this Act and to fund staff positions.

The sums appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.

PART IV

SECTION 5. 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 6. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 7. In codifying the new sections added by section 1 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 8. This Act shall take effect on July 1, 2015, and shall be repealed on June 30, 2020.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	1375
TWENTY-EIGHTH LEGISLATURE, 2015
STATE OF HAWAII