HB 1239 – State Financed Superferry

House Bill 1239 (Senate Bill SD1), would require that the State buy and operate a “High Speed Ferry Vessel”. It next goes to the Senate’s Ways and Means Committee for funding. Ways and Means Committee: Chair David Ige (Email sendige@Capitol.hawaii.gov) Vice-Chair Michelle Kidani (Email senkidani@capitol.hawaii.gov) Suzanne Chun Oakland, Donovan M. Dela Cruz, J. Kalani English, Will Espero, Carol Fukunaga, Gilbert Kahele, Donna Mercado Kim, Ronald D. Kouchi, Pohai Ryan, Jill N. Tokuda, Glenn Wakai, Sam Slom Bill text is reproduced below with highlighting of references to the requirement that the State operate the Superferry at taxpayer expense: A BILL FOR AN ACT RELATING TO FERRIES. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: SECTION 1. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows: “CHAPTER HAWAII STATE FERRY SYSTEM §-1 Definitions. As used in this chapter, unless the context indicates otherwise: “Authority” means the Hawaii state ferry system authority. “Department” means the department of transportation. “Director” means the director of transportation. “Ferry system” means the Hawaii state ferry system. High speed ferry vessel” means any inter-island ferry  vessel capable of operating at thirty knots or more that transports, is designed to transport, or is intended to transport per voyage at least five hundred passengers, two hundred motor vehicles, and cargo, between the islands of the State. “vessel” means all manner of watercraft, used or capable of being used as a means of transporting persons or property on or in the waters of the State between the islands. “Waters of the State” has the same meaning as in section 200—23. §-2 Hawaii state ferry system authority; establishment; members (a) There is established in the department, the Hawaii state ferry system authority, which shall be a body corporate and a public instrumentality of the State, for the purpose of implementing this chapter. (b) The authority shall comprise six public voting members and one ex officio voting member, provided that: (1) Public members shall be appointed by the governor as provided in section 26-34, except as otherwise provided by law; (2) Four public members shall represent the counties of Maui, Hawaii, and Kauai, and the City and County of Honolulu, with each county being represented by one public member; (3) Two public members shall have knowledge, experience, and expertise in the area of maritime industry management, operations, and marketing; and (4) The director of transportation or the director’s designee shall be an ex officio voting member and chairperson of the authority. §-3 Powers. (a) Except as otherwise limited by this chapter, the authority may: (1) Sue and be sued; (2) Have a seal and alter the same at pleasure; (3) Through the director, make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this chapter; provided that the authority may enter into contracts and agreements for a period of up to five years, subject to the availability of funds; and provided further that the authority may enter into financing, lease, and similar agreements for the provisions of vessels for normal and usual commercial terms; (4) Make and alter bylaws for its organization and internal management; (5) Unless otherwise provided in this chapter, adopt rules in accordance with chapter 91 with respect to its projects, operations, properties, and facilities; (6) Through the director, represent the authority in communications with the governor and the legislature; (7) Through the director, provide for the appointment of officers, agents, and employees, subject to the approval of the authority, prescribing their duties and qualifications, and fixing their salaries, without regard to chapters 76 and 78; (8) Through the director, purchase supplies, equipment, and furniture; (9) Through the director, allocate the space or spaces that are to be occupied by the authority and appropriate staff; (10) Through the director, engage the services of consultants on a contractual basis for rendering professional and technical assistance and advice; (11) Procure insurance against any loss in connection with its property and other assets and operations in amounts and from insurers as it deems desirable; (12) Contract for or accept revenues, compensation, proceeds, and gifts or grants in any form from any public agency or any other source; (13) Develop, coordinate, and implement state policies and directions for safe transportation of persons and property between the islands, taking into account the economic, social, and physical impacts of its operations on the State and each of the counties; (14) work to eliminate or reduce barriers to travel between the islands and provide a positive and competitive business environment, including coordinating with the department on issues affecting other water carriers and airlines and air route development; (15) Set and collect rents, fees, charges, or other 12 payments for the lease, use, occupancy, or disposition of any facilities under its control, including wharves and terminals, without regard to chapter 91; (16) Notwithstanding chapter 171, acquire, lease as lessee 16 or lessor, own, rent, hold, and dispose of the facilities in the exercise of its powers and the performance of its duties under this chapter; and (17) Acquire by purchase, lease, or otherwise, and develop, construct, operate, own, manage, repair, reconstruct, 21 enlarge, or otherwise effectuate, either directly or through developers, any required facilities, including terminal facilities. (b) At minimum, the authority shall operate one high speed ferry vessel and other small vessels, as needed, for service to and between the islands of Maui, Molokai, and Lanai and other routes. (c) The authority shall do any and all things necessary to carry out its purposes, exercise the powers and responsibilities given in this chapter, and perform other functions required or authorized by law. §-4 Initial operations. (a) The authority, as soon as practicable, shall engage in communications with the United States Department of Transportation and the United States Maritime Administration relating to federal funding assistance and the possible purchase or lease of the former high speed ferry vessel that operated in waters of the State or other available suitable vessels to commence its operations. (b) The authority shall have full access to all the waters of the State for the routes and schedules of the operations of0 the ferry system.12 (c) The authority shall have access on a priority basis into all harbors and small boat facilities operated by the department and the department of land and natural resources for discharging and receiving of passengers and property, wharfage, mooring, terminal, and other support facilities. (d) To the extent practicable, the authority shall use facilities used by the former operator of a high speed ferry vessel that operated in waters of the State for its ferry system operations, including but not limited to terminal facilities, S ramps, moorage facilities, and equipment. §-5 Improvements and harbor facilities. Through the director, the authority shall have all the rights and powers afforded the department with regard to section 266-19.5 and sections 266-51 to 266—55. §-6 Common carrier. The authority shall have all the rights, obligations, and duties of a common carrier of persons and property in its ferry system operations, including the right to a certificate of public convenience and necessity; provided that the authority shall be subject to the provisions of chapters 269 and 271G. §-7 Rates, fares, and charges; Hawaii state ferry system special fund. (a) There is established the Hawaii state ferry system special fund, into which shall be deposited: (1) All rates, fares, charges, and revenue collected ferry system; (2) Appropriations by the legislature to the Hawaii state (3) Gifts, grants, and other funds accepted by the authority; and (4) All interest and revenues or receipts derived by the authority from any project or project agreements. (b) All rates, fares, charges, and other revenue collected by the authority in the operation of the ferry system, including but not limited to the carriage of persons and property and the lease of terminal areas, shall be deposited into the Hawaii state ferry system special fund. (c) Moneys in the Hawaii state ferry system special fund may be: (1) Placed in interest-bearing accounts; provided that the depository in which the money is deposited furnishes security under the same terms as required by section 38—3; or (2) otherwise invested by the authority until the moneys1 may be needed; provided that the authority shall limit2 its investments to those listed in section 36-21. All interest accruing from the investment of these moneys shall be credited to the Hawaii state ferry system special fund. (d) Moneys in the Hawaii state ferry system special fund shall be used by the authority for the operations of the Hawaii state ferry system and for the purposes of this chapter. §-8 Rules. The authority shall adopt, amend, and repeal rules in accordance with chapter 91 to implement this chapter. SECTION 2. chapter 268, Hawaii Revised Statutes, is repealed. SECTION 3.There is appropriated out of the general revenues of the State of Hawaii the sum of $___ thereof as may be necessary for fiscal year 2011-2012 and the same sum or so much thereof as may be necessary for fiscal year 2012-2013 for the start-up and operations of the Hawaii state ferry system. The sums appropriated shall be expended by the department of transportation for the purposes of this Act. SECTION 4. This Act shall take effect on July 1, 2030.