Report Title:
Concessions on public property
Description:
Authorizes the Director to extend revocable permits for concessions for an additional period not to exceed one year if extensions are necessary in light of a natural disaster, or the continuation of an adverse economic condition which would adversely affect the State's ability to solicit and obtain favorable bid proposals. (HB2584 HD1)
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2584 |
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TWENTY-FIRST LEGISLATURE, 2002 |
H.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO CONCESSIONS ON PUBLIC PROPERTY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 102-2, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) The bidding requirements of subsection (a) shall not apply to concessions or space on public property set aside for the following purposes:
(1) For operation of ground transportation services and parking lot operations at airports, except for motor vehicle rental operations under chapter 437D;
(2) For lei vendors;
(3) For airline and aircraft operations;
(4) For automatic teller machines and vending machines, except vending machines located at public schools operated by blind or visually handicapped persons in accordance with section 302A-412;
(5) For operation of concessions set aside without any charge;
(6) For operation of concessions by handicapped or blind persons; except concessions operated in the public schools by blind or visually handicapped persons in accordance with section 302A-412;
(7) For operation of concessions on permits revocable on notice of thirty days or less; provided that no such permits shall be issued for more than a one year period; provided, however, that revocable permits issued by the department of transportation for use of state airports may be extended for an additional period not to exceed one year if the director of transportation determines that an extension to the term of the revocable permit is necessary in light of:
(A) A natural disaster; or
(B) A continuation of an adverse economic condition occurring within the previous twelve months that would adversely affect, in the assessment of the director of transportation, the State's ability to solicit and obtain favorable bid proposals;
(8) For operation of concessions or concession spaces for a beach service association dedicated to the preservation of the Hawaii beachboy tradition, incorporated as a nonprofit corporation in accordance with state law, and whose members are appropriately licensed or certified as required by law;
(9) For operation of concessions at county zoos, botanic gardens, or other county parks which are environmentally, culturally, historically, or operationally unique and are supported, by nonprofit corporations incorporated in accordance with state law solely for purposes of supporting county aims and goals of the zoo, botanic garden, or other county park and operating under agreement with the appropriate agency solely for such purposes, aims, and goals; and
(10) For operations of concessions that furnish goods or services for which there is only one source, as determined by the head of the awarding government agency in a writing that shall be included in the contract file.
For purposes of this subsection, "adverse economic condition" means a reduction of fifteen per cent or more in the volume of business of the concessionaire for a period of thirty days or more during the term of the contract (including contracts which have been executed and are presently in force) computed on the average monthly gross receipts for the six months immediately prior to the period or as long as the concessionaire has been in business, whichever period is shorter, and such reduction as determined by the officer letting the contract is caused by a reduction in international or domestic passengers arriving during the period of time on, or within or contiguous to, the public property upon which the concession is located by state government, the officer, with the approval of the governor may modify any of the terms of the contract, including the agreed upon rent, for a period which will allow the concessionaire to recoup the amount lost by such reduction; provided the period of recoupment shall end when for six consecutive months the average gross monthly receipts is equal to or greater than the average gross monthly receipts computed and used for the six months or less prior to the start of the recoupment period; provided further that if the contract includes provisions for modification for the above contingencies, this section shall be applicable thereto; provided further that this provision shall not apply to any particular concession if the application thereto may impair any contractual obligations with bondholders of the State or with any other parties."
SECTION 2. New statutory material is underscored.
SECTION 3. This Act shall take effect upon its approval.