HB2332 HD1

SECTION 1. Section 26-15, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The department shall manage and administer the public lands of the State and minerals thereon and all water and coastal areas of the State except the commercial [~~harbor~~] port areas of the State, including the soil conservation function, the forests and forest reserves, aquatic life, wildlife resources, state parks, including historic sites, and all activities thereon and therein including, but not limited to, boating, ocean recreation, and coastal areas programs."

SECTION 2. Section 28-2, Hawaii Revised Statutes, is amended to read as follows:

"§28-2 Prosecutes offenders, enforces bonds. The attorney general shall be vigilant and active in detecting offenders against the laws of the State[,] and shall prosecute the same with diligence. The attorney general shall also enforce all bonds and other obligations in favor of the State that may be placed in the attorney general's hands for that purpose, by any person having the lawful custody of the papers; and the attorney general shall likewise be diligent in prosecuting all persons who may obstruct any street, channel, harbor, commercial port, wharf, or other highway, or any stream or public watercourse, or commit any trespass, or waste on any portion of the public domain, or other public property."

SECTION 3. Section 36-29, Hawaii Revised Statutes, is amended to read as follows:

"§36-29 Transfer from [~~harbor~~] commercial port special fund. Any other law to the contrary notwithstanding, there shall be deducted from time to time by the director of finance for the purpose of defraying the prorated estimate of central service expenses of government in relation to the [~~harbor~~] commercial port special fund five per cent of all receipts and deposits in the [~~harbor~~] commercial port special fund after deducting therefrom any amounts pledged, charged, or encumbered for the payment of bonds or interest thereon during the current year, from which receipts or deposits no deduction of five per cent has previously been made. The deductions shall be transferred to the general fund of the State and become general realizations of the State. For the purposes of this section, the term "any amount pledged, charged, or encumbered for the payment of bonds or interest thereon during the current year" shall include:

(1) Amounts [~~which~~] that are so pledged, charged or encumbered;

(2) Amounts otherwise required to be applied to the payment of principal of and interest on revenue bonds or other revenue obligations;

(3) Amounts required to be paid into a separate special fund for the payment of principal of and interest on revenue bonds or other revenue obligations payable from the second separate special fund; and

(4) Amounts required by law to be paid from the [~~harbor~~] commercial port special fund into the general fund of the State to reimburse the general fund for bond requirements for general obligation bonds issued for harbor or commercial port purposes.

The second separate special fund maintained by deposits from the [~~harbor~~] commercial port special fund shall not be deemed to be a special fund within the meaning of section 36-27 or section 36-30. The director of transportation shall cooperate with the director of finance in effecting the transfer."

SECTION 4. Section 171-3, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The department of land and natural resources shall be headed by an executive board to be known as the board of land and natural resources. The department shall manage, administer, and exercise control over public lands, the water resources, ocean waters, navigable streams, coastal areas (excluding commercial [~~harbor~~] port areas), and minerals and all other interests therein and exercise such powers of disposition thereof as may be authorized by law. The department shall also manage and administer the state parks, historical sites, forests, forest reserves, aquatic life, aquatic life sanctuaries, public fishing areas, boating, ocean recreation, coastal programs, wildlife, wildlife sanctuaries, game management areas, public hunting areas, natural area reserves, and other functions assigned by law."

SECTION 5. Section 171-24, Hawaii Revised Statutes, is amended to read as follows:

"§171-24 Land conveyances, preparation, signing, record, copies. Except for the preparation and execution of leases and licenses and the issuance of revocable permits and rights of entry by the department of transportation, in its harbor, commercial port, and airport functions, all land patents, deeds, leases, grants, or other conveyances of any public land or any interest therein, shall be prepared by the department of land and natural resources. The department of transportation shall, within thirty days after the execution or issuance of such documents, file or record as directed by the board of land and natural resources the original of the same with the board.

Documents setting aside lands for public purposes or withdrawing the same shall be signed by the governor. All other documents prepared by the department of land and natural resources shall be signed by its chairperson or any authorized employee.

The board shall keep a complete record of all such documents. The record shall be open to public inspection and the board shall furnish a certified copy, under its official seal, of any document to any person applying therefor, upon payment of reasonable charges set by the board for certified copies."

SECTION 6. Section 188F-2, Hawaii Revised Statutes, is amended to read as follows:

"§188F-2 West Hawaii regional fishery management area; establishment. The department of land and natural resources shall establish the West Hawaii regional fishery management area to improve the management of consumptive and nonconsumptive uses of aquatic resources encompassing the regional ocean area on the west coast of Hawaii Island, from Ka Lae, Kau (South Point) to Upolu Point, North Kohala, but not including the port of Kawaihae [~~commercial~~] and Kawaihae harbor."

SECTION 7. Section 200-10, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) The permittee shall pay moorage fees to the department for the use permit that shall be based on but not limited to the use of the vessel, the vessel's effect on the harbor, use of facilities, and the cost of administering the mooring program; provided that:

(1) Except for commercial maritime activities in which a tariff is established by the department of transportation, moorage fees shall be established by appraisal by a state-licensed appraiser approved by the department;

(2) For commercial maritime activities in which a tariff is established by the [~~harbors~~] commercial ports division of the department of transportation, the department may adopt the published tariff of the [~~harbors~~] commercial ports division of the department of transportation or establish the fee by appraisal by a state-licensed appraiser approved by the department;

(3) An application fee shall be collected when applying for moorage in state small boat harbors and shall thereafter be collected annually when the application is renewed; provided that the application fee shall be set by the department;

(4) If a recreational vessel is used as a place of principal habitation, the permittee shall pay, in lieu of the moorage fee required by paragraph (1), a monthly liveaboard fee that shall be two times the moorage fee that would otherwise be assessed for a vessel of the same size;

(5) If a vessel is used for commercial purposes from the vessel's permitted mooring, the permittee shall pay, in lieu of the moorage fee required by paragraph (1), a monthly fee that shall be the greater of:

(A) Three per cent of the gross revenues derived from the use of the vessel;

(B) $1.50 per passenger carried for hire; or

(6) The department is authorized to assess and collect utility fees, including electrical and water charges, and common-area maintenance fees in small boat harbors; and

(7) All fees established by appraisal pursuant to this subsection shall be set at fair market value."

SECTION 8. Section 205A-48, Hawaii Revised Statutes, is amended to read as follows:

"§205A-48 Conflict of other laws. In case of a conflict between the requirements of any other state law or county ordinance regarding shoreline setback lines, the more restrictive requirements shall apply in furthering the purposes of this part. Nothing contained in this part shall be construed to diminish the jurisdiction of the state department of transportation over wharves, airports, docks, piers, or other commercial [~~harbors,~~] ports, and any other maritime facilities constructed by the State; provided that such plans are submitted for the review and information of the officer of the respective agency charged with the administration of the county zoning laws, and found not to conflict with any county ordinances, zoning laws, and building codes."

SECTION 9. Section 237-6, Hawaii Revised Statutes, is amended to read as follows:

"§237-6 "Contractor", "contracting", "federal cost-plus contractor", defined. "Contracting" means the business activities of a contractor.

"Contractor" includes, for purposes of this chapter:

(1) Every person engaging in the business of contracting to erect, construct, repair, or improve buildings or structures, of any kind or description, including any portion thereof, or to make any installation therein, or to make, construct, repair, or improve any highway, road, street, sidewalk, ditch, excavation, fill, bridge, shaft, well, culvert, sewer, water system, drainage system, dredging or harbor improvement project, commercial port improvement project, electric or steam rail, lighting or power system, transmission line, tower, dock, wharf, or other improvements;

(2) Every person engaging in the practice of architecture, professional engineering, land surveying, and landscape architecture, as defined in section 464-1; and

(3) Every person engaged in the practice of pest control or fumigation as a pest control operator as defined in section 460J-1.

"Federal cost-plus contractor" means a contractor having a contract with the United States or an instrumentality thereof, excluding national banks, where, by the terms of the contract, the United States or such instrumentality, excluding national banks, agrees to reimburse the contractor for the cost of material, plant, or equipment used in the performance of the contract and for taxes which the contractor may be required to pay with respect to such material, plant, or equipment, whether the contractor's profit is computed in the form of a fixed fee or on a percentage basis; and also means a subcontractor under such a contract, who also operates on a cost-plus basis."

SECTION 10. Chapter 266, Hawaii Revised Statutes, is amended by amending its title to read as follows:

"CHAPTER 266

[~~HARBORS~~] COMMERCIAL PORTS"

SECTION 11. Section 266-1, Hawaii Revised Statutes, is amended to read as follows:

"§266-1 Department of transportation; [~~harbors;~~] commercial ports; jurisdiction[.]; definitions. (a) All commercial ports, harbors, and roadsteads, and all commercial ports, harbors, and other waterfront improvements belonging to or controlled by the State, and all vessels and shipping within the commercial ports, harbors, and roadsteads shall be under the care and control of the department [~~of transportation~~].

(b) For the purpose of this chapter[~~, "commercial harbors"~~]:

"Anchorage ground" has the same meaning as in title 33 Code of Federal Regulations section 110.235(a).

"Cargo" means the load, freight, or burden of a vessel exclusive of the vessel's stores, passengers, fuel, and ballast.

"Commercial port" means [~~a harbor or off-shore mooring facility which~~] an anchorage ground or a marine terminal facility that is primarily for the movement of [~~commercial~~] cargo, passenger and fishing vessels entering, leaving, or traveling within the State, and facilities and supporting services for loading, off-loading, and handling of cargo, passengers, and vessels.

"Department" means the department of transportation.

"Harbor" refers to the following areas of water that provide a natural or artificial haven for vessels and that fall under the jurisdiction of the department:

(1) Port Allen harbor;

(2) Nāwiliwili harbor;

(3) Kalaeloa Barbers Point harbor;

(4) Honolulu harbor;

(5) Kaunakakai harbor;

(6) Kaumalapau harbor;

(7) Kahului harbor;

(8) Hāna harbor;

(9) Kawaihae harbor; and

(10) Hilo harbor.

"Harbor" does not include any small boat harbor or any harbor that is not under the jurisdiction of the department.

"Passenger" means every individual on board a vessel other than the master and members of the crew or other individuals employed in the commercial business of that vessel.

"Vessel" means every description of watercraft used or capable of being used as a means of transportation on water, including power boats, ships, tugs, cruise boats, small craft, smaller commercial vessels, sailing vessels, barges, scows, lighters, ferry boats, pleasure craft, floating equipment, house boats, floating gear, and any and all other watercraft."

SECTION 12. Section 266-1.5, Hawaii Revised Statutes, is amended to read as follows:

"[[]§266-1.5[]] Port of Honolulu [~~harbor~~] Piers 1 and 2; jurisdiction. Any law to the contrary notwithstanding, the department [~~of transportation~~] shall have jurisdiction and administrative authority over the port of Honolulu [~~harbor~~] Piers 1 and 2 and the contiguous backup fast lands currently used for manifested cargo and passenger operations. This area is defined as all of lot 3 and parcels A and B of the Forrest Avenue subdivision, as shown on the map filed with the bureau of conveyances of the State of Hawaii, as file plan 2335, and lot A-2, as shown on map 2, filed in the office of the assistant registrar of the land court of the State of Hawaii with land court application 1328; provided that all existing easements affecting and appurtenant to the parcels to be deleted from the Kakaako community development district boundaries shall not be affected by this change."

SECTION 13. Section 266-1.6, Hawaii Revised Statutes, is amended to read as follows:

"[[]§266-1.6[] ~~Hana~~] Hāna harbor; jurisdiction. Notwithstanding any law to the contrary, the department [~~of transportation~~] shall have jurisdiction and administrative authority over [~~Hana~~] Hāna harbor, excluding its small boat ramp facility. The [~~Hana~~] Hāna harbor small boat ramp facility shall remain under the jurisdiction and administrative authority of the department of land and natural resources."

SECTION 14. Section 266-2, Hawaii Revised Statutes, is amended to read as follows:

"§266-2 Powers and duties of department. (a) The department [~~of transportation~~] shall:

(1) Have and exercise all the powers and shall perform all the duties [~~which~~] that may lawfully be exercised by or under the State relative to the control and management of commercial [~~harbors,~~] ports, commercial [~~harbor~~] port, harbor, and other waterfront improvements, [~~ports,~~] harbors, roadsteads, docks, wharves, piers, quays, bulkheads, and landings belonging to or controlled by the State, and the shipping using the same;

(2) Have the authority to use and permit and regulate the use of the commercial docks, wharves, piers, quays, bulkheads, and landings belonging to or controlled by the State for receiving or discharging passengers and for loading and landing merchandise, with a right to collect wharfage and demurrage thereon or therefor;

(3) Subject to all applicable provisions of law, have the power to fix and regulate from time to time rates and charges for:

(A) Services rendered in mooring commercial vessels;

(B) The use of commercial moorings belonging to or controlled by the State;

(D) Warehouse space, office space, and storage space for freight, goods, wares and merchandise; and

(E) The use of derricks or other equipment belonging to the State or under the control of the department;

(4) Make other charges including toll or tonnage charges on freight passing over or across docks, wharves, piers, quays, bulkheads, or landings;

(5) Appoint and remove clerks, [~~harbor~~] commercial port agents and their assistants, and all such other employees as may be necessary, and to fix their compensation;

(6) Adopt rules pursuant to chapter 91 and not inconsistent with law; and

(7) Generally have all powers necessary to fully carry out this chapter.

(b) Notwithstanding any law or provision to the contrary, the department [~~of transportation is authorized to~~] may plan, construct, operate, and maintain any commercial [~~harbor facility~~] port in the State, including, but not limited to, the acquisition and use of lands necessary to stockpile dredged spoils, without the approval of county agencies.

All moneys appropriated for commercial port, harbor, or other waterfront improvements, including new construction, reconstruction, repairs, salaries, and operating expenses, shall be expended under the supervision and control of the department, subject to this chapter and chapter 103D.

All contracts and agreements authorized by law to be entered into by the department shall be executed on its behalf by the director of transportation.

(c) The department shall prepare and submit annually to the governor a report of its official acts during the preceding fiscal year, together with its recommendations as to commercial port, harbor, or other waterfront improvements throughout the State."

SECTION 15. Section 266-2.2, Hawaii Revised Statutes, is amended to read as follows:

"[[]§266-2.2[]] Exemption from conservation district permitting and site plan approval requirements. Notwithstanding any law to the contrary, all work involving submerged lands used for [~~state~~] commercial [~~harbor~~] port purposes shall be exempt from any permitting and site plan approval requirements established for lands in a conservation district."

SECTION 16. Section 266-2.5, Hawaii Revised Statutes, is amended to read as follows:

"[[]§266-2.5[]] Outdoor lighting. To the extent that it is practical and not in conflict with any safety regulation or federal law, regulation, or mandate, if any [~~harbor~~] commercial port rule or standard relating to outdoor lighting at any [~~harbor facility~~] commercial port conflicts with any county ordinance or other rule regarding outdoor lighting, the more stringent requirement or standard shall govern all new installations of outdoor lighting."

SECTION 17. Section 266-3, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

"§266-3 Rules. (a) The director of transportation may adopt rules as necessary:

(1) To regulate the manner in which all vessels may enter and moor, anchor, or dock in the commercial ports, harbors, [~~ports,~~] and roadsteads of the State, or move from one dock, wharf, pier, quay, bulkhead, landing, anchorage, or mooring to another within the commercial ports, harbors, [~~ports,~~] and roadsteads;

(2) For the examination, guidance, and control of harbor masters and their assistants and their conduct while on duty;

(3) For the embarking or disembarking of passengers;

(4) For the expeditious and careful handling of freight, goods, wares, and merchandise of every kind that may be delivered for shipment or discharged on the commercial docks, wharves, piers, quays, bulkheads, or landings belonging to or controlled by the State; and

(5) To define the duties and powers of carriers, shippers, and consignees respecting passengers, freight, goods, wares, and merchandise in and upon the docks, wharves, piers, quays, bulkheads, or landings within the commercial ports, harbors, [~~ports,~~] and roadsteads of the State. The director may also make further rules for the safety of the docks, wharves, piers, quays, bulkheads, and landings on, in, near, or affecting a commercial [~~harbor~~] port, harbor, and other waterfront improvements belonging to or controlled by the State.

(b) The director may also adopt, amend, and repeal such rules as are necessary:

(1) For the proper regulation and control of all shipping, traffic, and other related activities in the commercial ports, harbors, or roadsteads belonging to or controlled by the State; of the entry, departure, mooring, and berthing of vessels therein; and of all other matters and things connected with such activities;

(2) To establish safety measures and security requirements in or about the commercial [~~harbors,~~] ports, land, and facilities belonging to or controlled by the State;

(3) To prevent the discharge or throwing into commercial ports, harbors, or roadsteads of rubbish, refuse, garbage, or other substances likely to affect water quality or that contribute to making [~~such~~] commercial ports, harbors, or roadsteads unsightly, unhealthful, or unclean, or that are liable to fill up shoal or shallow waters in, near, or affecting the commercial ports, harbors[;], or roadsteads; and

(4) To prevent the escape of fuel or other oils or substances into the waters in, near, or affecting commercial ports, harbors, or roadsteads from any source point, including, but not limited to, any vessel or pipes or storage tanks upon the land."

SECTION 18. Section 266-7, Hawaii Revised Statutes, is amended to read as follows:

"§266-7 Department; duties. The department [~~of transportation~~] shall collect all moneys, fees, and dues paid to the State for wharfage, demurrage, and all other fees or compensation in respect to the entry, anchorage, and wharfage of all vessels and other craft entering into the commercial ports of the State[,] and shall account for the same to the State as hereinafter provided. The department shall keep a full and complete record of the official acts of the department."

SECTION 19. Section 266-13, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

"(a) All watercraft:

(1) Lying idle alongside any wharf, pier, bulkhead, quay, or landing belonging to or controlled by the State; or

(2) Discharging or receiving freight or passengers on or from any wharf, pier, bulkhead, quay, or landing belonging to or controlled by the State, while made fast or lying alongside of the wharf, pier, bulkhead, quay, or landing;

shall pay to the department [~~of transportation~~] such rates of dockage as shall be fixed by the department.

(b) All watercraft that receive or discharge freight or passengers:

(1) From or upon any wharf, pier, bulkhead, quay, or landing, by means of boats, lighters, or otherwise, while lying at anchor or under steam in any bay, harbor, commercial port, or roadstead[;] belonging to or controlled by the State; or

(2) While lying in any slip or dock belonging to or controlled by the State, but not made fast to or lying alongside any wharf, pier, bulkhead, quay, or landing;

shall pay to the department such rates of dockage as shall be fixed by the department."

SECTION 20. Section 266-17, Hawaii Revised Statutes, is amended to read as follows:

"§266-17 Rates, how fixed. (a) The department [~~of transportation~~] shall adjust, fix, and enforce the rates assessable and chargeable by it in respect to dockage, wharfage, demurrage, and other rates and fees pertaining to harbors, commercial ports, wharves, and properties managed and operated by it so as to produce from the rates and fees, in respect to all harbors, commercial ports, wharves, and other properties, except those that are principally used for recreation or the landing of fish, revenues sufficient to:

(1) Pay when due the principal of and interest on all bonds and other obligations for the payment of which the revenue is or has been pledged, charged, or otherwise encumbered, or [~~which~~] that are otherwise payable from the revenue or from a special fund maintained or to be maintained from the revenue, including reserves therefor, and to maintain the special fund in an amount at least sufficient to pay when due all bonds or other revenue obligations and interest thereon[~~, which~~] that are payable from the special fund, including reserves therefor;

(2) Provide for all expenses of operation and maintenance of the properties, including reserves therefor, and the expenses of the department in connection with operation and maintenance; and

(3) Reimburse the general fund of the State for all bond requirements for general obligation bonds [~~which~~] that are or have been issued for harbor or [~~wharf~~] commercial port improvements, or to refund any of the improvement bonds, excluding bonds, the proceeds of which were or are to be expended for improvements [~~which~~] that are or will be neither revenue producing nor connected in their use directly with revenue producing properties.

(b) When weather, road closures due to special events, or road repairs do not permit the loading or unloading of passengers at Kewalo Basin, cruise boats holding a Kewalo Basin sublease approved by the State shall be allowed to use the port of Honolulu [~~Harbor~~] facilities on a space available basis, and the fees for the use of facilities shall be in accordance with the [~~Hawaii administrative~~] rules of the department [~~of transportation~~] relating to fees for use of facilities for private gain."

SECTION 21. Section 266-19, Hawaii Revised Statutes, is amended by amending its title and subsections (a) and (b) to read as follows:

"§266-19 Creation of [~~harbor~~] commercial port special fund; disposition of [~~harbor~~] commercial port special fund. (a) There is created in the treasury of the State the [~~harbor~~] commercial port special fund. All moneys received by the department [~~of transportation~~] from the rates, fees, fines, and administrative penalties pursuant to sections 266-17(a)(1), 266-25, 266-28, and 266-30 shall be paid into the [~~harbor~~] commercial port special fund. The [~~harbor~~] commercial port special fund and the second separate [~~harbor~~] commercial port special fund heretofore created shall be consolidated into the [~~harbor~~] commercial port special fund at such time as there are no longer any revenue bonds payable from the second separate [~~harbor~~] commercial port special fund. The harbor reserve fund heretofore created is abolished.

All moneys derived pursuant to this chapter from harbor or commercial port properties of the [~~statewide system of harbors~~] commercial ports system of the State shall be paid into the [~~harbor~~] commercial port special fund and each fiscal year shall be appropriated, applied, or expended by the department [~~of transportation~~] for the [~~statewide system of harbors~~] commercial ports system of the State for any purpose within the jurisdiction, powers, duties, and functions of the department [~~of transportation~~] related to the [~~statewide system of harbors,~~] commercial ports system of the State, including, without limitation, the costs of operation, maintenance, and repair of the [~~statewide system of harbors~~] commercial ports system of the State and reserves therefor, and acquisitions (including real property and interests therein), constructions, additions, expansions, improvements, renewals, replacements, reconstruction, engineering, investigation, and planning, for the [~~statewide system of harbors,~~] commercial ports system of the State, all or any of which in the judgment of the department [~~of transportation~~] are necessary to the performance of its duties or functions.

(b) At any time the director of transportation may transfer from the [~~harbor~~] commercial port special fund created by subsection (a) all or any portion of available moneys on deposit in the [~~harbor~~] commercial port special fund that is determined by the director of transportation to be in excess of one hundred fifty per cent of the requirements for the ensuing twelve months for the [~~harbor~~] commercial port special fund, as permitted by and in accordance with section 37-53. For purposes of this determination, the director of transportation shall take into consideration the amount of federal funds and bond funds on deposit in, and budgeted to be expended from, the [~~harbor~~] commercial port special fund during the ensuing twelve months; amounts on deposit in the [~~harbor~~] commercial port special fund that are encumbered or otherwise obligated; budgeted amounts payable from the [~~harbor~~] commercial port special fund during the ensuing twelve months; revenues anticipated to be received by and expenditures to be made from the [~~harbor~~] commercial port special fund during the ensuing twelve months based on existing agreements and other information for that period; and any other factors as the director of transportation shall deem appropriate."

SECTION 22. Section 266-19.5, Hawaii Revised Statutes, is amended as follows:

1. By amending its title and subsection (a) to read:

"§266-19.5 Private financing of harbor or commercial port improvements. (a) Notwithstanding any law to the contrary, the department [~~of transportation~~] may enter into a capital advancement contract with a private party for any public improvement to or construction of a [~~state~~] harbor, commercial [~~harbor,~~] port, roadstead, or other waterfront improvement belonging to or controlled by the State, if the director of transportation determines that a capital advancement contract promotes the best interest of the State by finding that:

(1) Private development is likely to be less costly than any other type of contract;

(2) Private development provides needed public improvements on a significantly more timely basis; or

(3) Public financing for the public improvements is not available on a timely basis."

2. By amending subsections (c) to (e) to read:

"(c) A capital advancement contract under subsection (a) shall be subject to the requirements of chapters 103 and 103D and be subject to the approval of the department [~~of transportation~~]; provided that all related transactions shall be subject to state audit.

(d) The department [~~of transportation~~] may execute capital advancement contracts pursuant to subsection (a) with a total contract value of $5,000,000 or less without legislative approval. If the total value of a capital advancement contract pursuant to subsection (a) is greater than $5,000,000 then the department [~~of transportation~~] shall obtain legislative approval in the form of the adoption of a concurrent resolution affirming the purpose, project, and contract issuance before executing the capital advancement contract. The total aggregate value of all capital advancement contracts entered into by the department pursuant to this section shall not exceed $30,000,000 in any fiscal year. The department shall submit a report to the legislature of all executed capital advancement contracts for the previous twelve-month period from July 1 to June 30 no later than twenty days prior to the convening of each regular session.

(e) For the purposes of this section:

"Capital advancement contract" means an agreement between the department [~~of transportation~~] and a private party whereby the private party agrees to furnish capital, labor, or materials for a public improvement to or construction of a [~~state~~] harbor, commercial [~~harbor,~~] port, roadstead, or other waterfront improvement belonging to or controlled by the State and in return for which the private party may be reimbursed in a manner to be determined by the department.

"Total value" includes any contract extension, project redesign, add-ons, or any other occurrence, act, or material cost that may increase the cost of the contracted project."

SECTION 23. Section 266-21.4, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The department shall:

(1) Develop a list of minimum requirements for the marine inspection of vessels seeking permits to moor in state commercial [~~harbors;~~] ports;

(2) Approve qualified marine surveyors to inspect vessels seeking permits to moor in state commercial [~~harbors;~~] ports; and

(3) Approve a fee schedule for marine surveyors' inspections."

SECTION 24. Section 266-21.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The department [~~of transportation~~] shall provide space at commercial [~~harbors~~] ports for biosecurity and inspection facilities and to facilitate the safe and efficient movement of maritime cargo through the commercial [~~harbors.~~] ports."

SECTION 25. Section 266-23, Hawaii Revised Statutes, is amended to read as follows:

"§266-23 Acceptance of gifts. The director of transportation may, with the approval of the governor, accept and receive gifts of personal property, which gifts shall be used for harbor or commercial port purposes; provided that moneys received by the director, pursuant to the authority granted herein, shall be deposited into an appropriate fund or account before being used for harbor or commercial port purposes."

SECTION 26. Section 266-24, Hawaii Revised Statutes, is amended to read as follows:

"§266-24 Enforcement. (a) Every state and county officer charged with the enforcement of any law, statute, rule, regulation, ordinance, or order, shall enforce and assist in the enforcement of this chapter and of all rules and orders issued pursuant thereto, and in carrying out the responsibilities hereunder, each shall be specifically authorized to:

(1) Conduct any enforcement action hereunder in any commercial [~~harbor~~] port area and any area over which the department [~~of transportation~~] and the director of transportation has jurisdiction under this chapter;

(2) Inspect and examine at reasonable hours any premises, and the buildings and other structures thereon, where [~~harbors or harbor facilities are~~] a harbor or commercial port is situated, or where harbor-related or commercial port-related activities are operated or conducted; and

(3) Serve notices and orders.

(b) The department [~~of transportation~~], in the name of the State, may enforce this chapter and the rules and orders issued pursuant thereto by injunction or other legal process in the courts of the State."

SECTION 27. Section 266-25, Hawaii Revised Statutes, is amended to read as follows:

"§266-25 Violation of rules; penalty. (a) In addition to the reimbursement of fines and costs as provided in section 266-28, any person who violates any rule made, adopted, and published by the department [~~of transportation~~] as herein provided, or who violates any lawful command of any harbor master, [~~harbor~~] commercial port agent, facility security officer, or [~~harbor~~] commercial port district manager, while in the discharge of the person's duty, or who violates this chapter, except as provided in subsections (b) and (c), shall be fined not more than $1,000 or less than $50 for each violation, and any vessel, the agents, owner, or crew of which violate the rules of the department or this part, shall be fined not more than $1,000 or less than $50 for each violation; provided that in addition to or as a condition to the suspension of the fines and penalties, a court, the department, or an administrative hearings officer may deprive the offender of the privilege of entering the secured area of the port or obtaining an operating or mooring permit for any vessel in state waters for a period of not more [[]than[]] one year; provided further that the offender, at the resumption of the privilege of operating or mooring a vessel in state waters, shall assume the last position on any waiting list.

(b) Any person who violates any rule adopted by the department [~~of transportation~~] under this part regulating vehicular parking or traffic movement shall have committed a traffic infraction as set forth in chapter 291D, the adjudication of which shall be subject to the provisions contained therein. A person found to have committed such a traffic infraction shall be fined not more than:

(1) $100 for a first violation;

(2) $200 for a second violation; and

(3) $500 for a third or subsequent violation.

(c) Any person who violates any rule adopted by the department [~~of transportation~~] relating to unauthorized discharge, dumping, or abandoning any petroleum product, hazardous material, or sewage in any [~~state~~] harbor [~~facility~~], commercial port, or state waters in violation of the state water quality standards established by the department of health, shall be fined not more than $10,000 for each day of violation, and any vessel, the agents, owner, or crew of which violate the rules of the department of transportation or this chapter, shall be fined not more than $10,000 for each day of violation; provided that in addition to or as a condition to the suspension of the fines and penalties, the court, department, or administrative [[]hearings[]] officer may deprive the offender of the privilege of entering the secured area of the port or obtaining an operating or mooring permit for any vessel in state waters for a period of not more than one year; provided further that the offender, at the resumption of the privilege of operating or mooring a vessel in state waters, shall assume the last position on any waiting list."

SECTION 28. Section 266-27, Hawaii Revised Statutes, is amended as follows:

1. By amending its title and subsection (a) to read:

"§266-27 Mooring of unauthorized vessel in [~~state~~ ~~harbors;~~] commercial ports; impoundment and disposal proceedings. (a) No person shall moor a vessel in a [~~state~~] commercial [~~harbor~~] port without obtaining a use permit; nor shall a person continue to moor a vessel in any [~~state~~] commercial [~~harbor~~] port if the use permit authorizing the vessel to moor has expired or otherwise been terminated. A vessel moored without a use permit or with a use permit that has expired or been terminated is an unauthorized vessel and [is] shall be subject to subsections (b) to (e)."

2. By amending subsection (c) to read:

"(c) An unauthorized vessel may be impounded by the department at the sole cost and risk of the owner of the vessel, if such a vessel is not removed after the seventy-two-hour period or if during said period the vessel is removed and re-moored in said [~~harbor~~] commercial port or any other state commercial [~~harbor~~] port without a use permit."

SECTION 29. Section 266-28, Hawaii Revised Statutes, is amended to read as follows:

"§266-28 Fines arising from environmental protection and maritime transportation security violations. Notwithstanding any other law to the contrary, any commercial [~~harbor~~] port tenant or user, including any shipper or shipping agent, who violates any federal, state, or county law or rule relating to environmental protection or maritime transportation security pursuant to title 33 Code of Federal Regulations chapter 1 and thereby causes a fine to be levied by the United States Coast Guard upon the department, shall reimburse the department for the entire amount of the fine. The department may take [~~such~~] the actions necessary to collect and deposit any amount reimbursable under this section into the [~~harbor~~] commercial port special fund[,] and may also demand reimbursement for costs or expenses incurred by the department resulting from enforcement of this section."

SECTION 30. Section 266-29, Hawaii Revised Statutes, is amended to read as follows:

"[[]§266-29[]] State [~~harbors~~] commercial ports civil violations system; authorization. (a) There is established, within the department [~~of transportation~~], a [~~state harbors~~] commercial ports civil violations system, [~~whose~~] which purpose shall be to process violations of departmental regulations for which administrative penalties have been authorized by law or rules adopted thereunder.

(b) The department [~~of transportation~~] shall adopt, amend, and repeal rules, subject to chapter 91, for the purposes of this section.

(1) Requirements for notice of [~~state harbors~~] commercial ports infraction;

(2) A form of the answer that shall be made pursuant to a notice of [~~state harbors~~] commercial ports infraction, which answer may be an admission of the infraction, a denial of the infraction, or an admission of the infraction with mitigating circumstances;

(3) The action to be taken after an answer is received or when a person fails to answer the notice of [~~state harbors~~] commercial ports infraction;

(4) Procedures for administrative hearings under this section;

(5) The imposition and enforcement of monetary assessments made pursuant to this section; and

(6) Means of assuring that the alleged violator who answers the notice of [~~state harbors~~] commercial ports infraction by an admission of the infraction or an admission of the infraction with mitigating circumstances has knowingly and voluntarily elected to use the [~~state harbors~~] commercial ports civil violations system and waive the appeal provided for in section 91-14.

(d) Notwithstanding any other provision of law to the contrary, all [~~state harbors~~] commercial ports infractions that the department [~~of transportation~~] identifies as subject to administrative penalties may be adjudicated pursuant to this section."

SECTION 31. Section 266-31, Hawaii Revised Statutes, is amended to read as follows:

"[[]§266-31[]] Restriction of use of facilities. The department [~~of transportation~~] may delay or deny approval for port entry or departure for any vessel for which the department has received notice from a federal agency or other agency that the vessel or its crew has engaged in activity that has violated any federal, state, or county law or rule pertaining to environmental protection, maritime transportation, trafficking of illegal contraband, or the collection or extraction of undersea minerals unlicensed or unpermitted by the State; provided that the department may grant approvals for use of any commercial [~~harbor facility~~] port by that vessel in coordination with the federal agency or other agency."

SECTION 32. Section 266-53, Hawaii Revised Statutes, is amended to read as follows:

"§266-53 Findings and determination for special facility leases. The department shall not enter into any special facility lease unless the department shall first find and determine that:

(1) The special facility [~~which~~] that is to be the subject of [~~such~~] the special facility lease will not be used to provide services, commodities, supplies, or facilities [~~which~~] that are then adequately being made available through the [~~harbors~~] commercial ports system of the State;

(2) The use or occupancy of the special facility under [~~such~~] the special facility lease would not result in the reduction of the revenues derived from the [~~harbors~~] commercial ports system of the State to an amount below the amount required to be derived therefrom by section 39-61; and

(3) The entering into of [~~such~~] the special facility lease would not be in violation of or result in a breach of any covenant contained in any resolution or certificate authorizing any bonds of the State and the department then outstanding."

SECTION 33. Section 279A-2, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The [~~state~~] department of transportation shall prepare a new statewide transportation plan and shall submit [~~said~~] the plan to the legislature in its 1978 session. The legislature shall adopt the plan by resolution. The plan shall be directed toward the ultimate development of a balanced, multi-modal statewide transportation system that serves clearly identified social, economic, and environmental objectives. The statewide transportation plan shall include the following system components:

(1) The national system of interstate and defense highways, and highways within the state highway system;

(2) Airports;

(3) Harbors, commercial ports, and water-borne transit;

(4) Surface mass transit systems; and

(5) Major county roads.

The department of transportation shall pay particular attention to the interfacing of the various modes of transportation."

SECTION 34. Section 279A-7, Hawaii Revised Statutes, is amended to read as follows:

"§279A-7 Statewide transportation council; responsibilities. In addition to its responsibility for coordinating the development of a statewide transportation plan, the council shall be responsible for the following functions:

(1) The council shall be responsible for making recommendations on projects for submission to the legislature which involve solely and exclusively either state highways, harbors, commercial ports, and water-borne transit, and airports and air transportation; solely and exclusively state funds; or solely state lands. All other projects for submission to the legislature, including intra-county mass transit projects, shall be the responsibility of the counties.

(2) In respect to transportation projects for which the counties are responsible for planning and approval prior to submission to the legislature, the council shall review [~~such~~] the projects and prepare comments for the legislature regarding:

(A) The degree to which an intra-island transportation project interfaces efficiently with existing proposed inter-island transportation system; and

(B) The relationship between the specific projects' possible requirements for state financial assistance and projections as to the State's total potential financial commitments required for development of a statewide transportation system.

(3) Counties [~~which~~] that do not have metropolitan planning organizations may request from the council, and the council shall provide, technical assistance to the counties in the preparation of their respective county transportation plans as components of the statewide transportation planning process. The amounts of technical assistance to be provided hereunder are within the discretion of the chairperson who shall consider in making the chairperson's determinations the magnitude of the problems which exist in the requesting counties, the availability of local resources, the degree to which they are cooperatively participating in the statewide planning process and the adequacy of the council's budget considering the financial requirements of overall council operations."

SECTION 35. Section 311D-1, Hawaii Revised Statutes, is amended by amending article II to read as follows:

"ARTICLE II

DEFINTIONS

As used in this compact, unless the context clearly requires a different construction:

"Active duty" means full-time duty status in the active uniformed service of the United States, including members of the national guard and reserve on active duty orders pursuant to 10 United States Code section 101(d)(1) and section 101(d)(6)(A).

"Appropriate education agency" means a public authority legally constituted by a state as an administrative agency to provide control of and direction for kindergarten through twelfth grade public educational institutions.

"Children of military families" means school-aged children, enrolled in kindergarten through twelfth grade, in the households of active duty members.

"Compact" means the interstate compact on educational opportunity for military children.

"Compact commissioner" means the voting representative of each compacting state appointed pursuant to article VIII of this compact.

"Deployment" means the period of three months prior to the service members' departure from their home station on military orders through six months after return to their home station.

"Education records" means those official records, files, and data directly related to a student and maintained by the school or appropriate education agency, including records encompassing all the material kept in the student's cumulative folder such as general identifying data, records of attendance and of academic work completed, records of achievement and results of evaluative tests, health data, disciplinary status, test protocols, and individualized education programs.

"Extracurricular activities" means a voluntary activity sponsored by the school or appropriate education agency or an organization sanctioned by the appropriate education agency. Extracurricular activities include preparation for and involvement in public performances, contests, athletic competitions, demonstrations, displays, and club activities.

"Interstate commission on educational opportunity for military children" or "interstate commission" means the commission that is created under article IX of this compact.

"Local education agency" means a public authority legally constituted by a state as an administrative agency to provide control of and direction for kindergarten through twelfth grade public educational institutions.

"Member state" means a state that has enacted this compact.

"Military installation" means a base, camp, post, station, yard, center, homeport facility for any ship, or other facility under the jurisdiction of the United States Department of Defense, including any leased facility, which is located within any of the several states, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, American Samoa, the Northern Marianas Islands, and any other United States territory. The term shall not include any facility used primarily for civil works, rivers, [~~and~~] harbors, and commercial ports projects, or flood control projects.

"Non-member state" means a state that has not enacted this compact.

"Receiving state" means the state to which a child of a military family is sent, brought, or caused to be sent or brought.

"Rule" means a written statement by the interstate commission promulgated pursuant to article XII of this compact that is of general applicability, implements, interprets, or prescribes a policy or provision of the compact, or an organizational, procedural, or practice requirement of the interstate commission, has the force and effect of statutory law in a member state, and includes the amendment, repeal, or suspension of an existing rule.

"Sending state" means the state from which a child of a military family is sent, brought, or caused to be sent or brought.

"State" means a state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, American Samoa, the Northern Marianas Islands, and any other United States territory.

"Student" means the child of a military family for whom the local education agency receives public funding and who is formally enrolled in kindergarten through twelfth grade.

"Student financial obligation" means any unpaid or outstanding fines or fees.

"Transition" means the formal and physical process of transferring from school to school, or the period of time in which a student moves from one school in the sending state to another school in the receiving state.

"Uniformed service" means the Army, Navy, Air Force, Marine Corps, Coast Guard as well as the Commissioned Corps of the National Oceanic and Atmospheric Administration, and Public Health Services.

"Veteran" means a person who served in the uniformed services and who was discharged or released therefrom under honorable conditions."

SECTION 36. Section 708-814.7, Hawaii Revised Statutes, is amended by amending subsection (3) to read as follows:

"(3) For the purposes of this section, unless the context requires otherwise:

"Highway" has the same meaning as in section 286-2.

"Improved state land" means any state land, including but not limited to harbors or commercial ports under the care and control of the department of transportation under chapter 266, and small boat harbors under the care and control of the department of land and natural resources under chapter 200, upon which there is improvement, including any structure, building, or facility; or alteration of the land by grading, dredging, or mining that would cause a permanent change in the land or that would change the basic natural condition of the land. Land is not "improved state land" if it only has minor improvements, including utility poles, signage, and irrigation facilities or systems; or minor alterations undertaken for the preservation or prudent management of the unimproved or unused land, including fences, trails, or pathways. Land is not "improved state land" solely due to the performance of state maintenance activities on the land, including forest plantings and the removal of weeds, brush, rocks, boulders, or trees; or removal or securing of rocks or boulders undertaken to reduce risk to downslope properties.

"State lands" means all land owned by the State through any of its departments or agencies."

SECTION 37. Sections 26-19(a), 37-53, 76-16(b), 102-14(g), 206J-4(b), 206J-5(a), 206J-12(a), 226-17(b), 226-54(b), 226-55, 279C-2, 291C-27(b), 386-181(a) and (b), 462A-3, and 462A-35(b), Hawaii Revised Statutes, are amended by substituting the term "commercial harbor", or similar term, wherever the word "harbor", or similar term, appears, as the context requires.

SECTION 38. Sections 266-4, 226-4.5, 226-6, 266-14, 266-24.1, 266-24.2, 266-30(a), and 266-61, Hawaii Revised Statutes, are amended by substituting the term "department", or similar term, wherever the word "department of transportation", or similar term, appears, as the context requires.

SECTION 39. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 40. This Act shall take effect on July 1, 3000.

HOUSE OF REPRESENTATIVES	H.B. NO.	2332
THIRTY-THIRD LEGISLATURE, 2026		H.D. 1
STATE OF HAWAII