(a) Notwithstanding any law to the contrary, the board may enter into a capital advancement contract with a private party for any public improvement to or construction of a state small boat harbor, if the chairperson determines that a capital advancement contract promotes the best interest of the State by finding that:

Terms Used In Hawaii Revised Statutes 200-19

  • Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
  • Chairperson: means the chairperson of the board of land and natural resources. See Hawaii Revised Statutes 200-1
  • Concurrent resolution: A legislative measure, designated "S. Con. Res." and numbered consecutively upon introduction, generally employed to address the sentiments of both chambers, to deal with issues or matters affecting both houses, such as a concurrent budget resolution, or to create a temporary joint committee. Concurrent resolutions are not submitted to the President/Governor and thus do not have the force of law.
  • Contract: A legal written agreement that becomes binding when signed.
  • Department: means the department of land and natural resources. See Hawaii Revised Statutes 200-1
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
(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.
(b) A capital advancement contract under subsection (a) may be financed by legislative appropriation to reimburse the private party or by credit against the private party’s future rental or tariff payments to the State; provided that the terms of the contract shall ensure that the State benefits financially from the arrangement and that public use of the facility is maintained; provided further that capital advancement contracts under this section shall not be general obligations of the State for which the full faith and credit of the department is pledged and the legislature shall have no obligation to appropriate funds to reimburse a private party to a capital advancement contract.
(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 board; provided that all related transactions shall be subject to state audit.
(d) The board may execute capital advancement contracts pursuant to subsection (a) with a total contract value of $2,000,000 or less without legislative approval. If the total value of a capital advancement contract pursuant to subsection (a) is greater than $2,000,000 then the board shall obtain legislative approval in the form of the adoption of a concurrent resolution affirming the purpose, project, and contract issuance prior to executing the capital advancement contract. The total aggregate value of all capital advancement contracts entered into by the board pursuant to this section shall not exceed $5,000,000 in any calendar year.
(e) For the purposes of this section:

“Capital advancement contract” means an agreement between the board 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 small boat harbor and in return for which the private party may be reimbursed in a manner to be determined by the board.

“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.

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