§48-3  Certificate of convenience and
necessity.  No political subdivision may issue economic development bonds
without first having been issued a certificate of convenience and necessity
therefor.  The certificate shall be issued by the department of business,
economic development, and tourism upon a petition of the governing body of the
political subdivision proposing to issue economic development bonds upon the
department finding:



(1)  That the political subdivision has a contract,
approved by its governing body, with an individual, partnership, or corporation
to lease the property to be acquired with the proceeds of the economic
development bonds for occupancy and use in connection with the conduct of an
agricultural, industrial, commercial, or hotel enterprise for a period of
years, and for the lessee to pay an annual rental adequate to meet interest and
principal payments falling due during the term of the lease;



(2)  That the lessee of the property is a responsible
party;



(3)  That the contract for lease of the property
provides for:



(A)  The reasonable maintenance, less normal
wear and tear, of the property by the lessee;



(B)  Insurance to be carried on the property
and the use and disposition of insurance moneys; and



(C)  The rights of the political subdivision
and the lessee respecting the disposition of the property financed by the
proposed economic development bonds upon retirement of the bonds or termination
of the contract by expiration or failure to comply with any of the provisions
thereof;



(4)  In addition to the above, the contract may
provide for the rights of the bondholders, the care and disposition of rental
receipts, and such other safeguards as are deemed to be necessary by the
department;



(5)  That opportunities for employment are inadequate
in the area from which the proposed development plan would reasonably draw its
labor force and that there exists in that area a condition of substantial and
persistent unemployment or under employment;



(6)  That the proposed project will provide employment
having a reasonable relationship to the volume of the bonds issued as compared
to investment per employee of comparable facilities elsewhere in the private
sector;



(7)  That financing by banks, other financial
institutions, or other parties, of the property required by the lessee is not
readily available to lessee on ordinary commercial terms in adequate amounts
either on the local or the national market;



(8)  That no portion of the proposed economic
development bond issues will be purchased by the lessee or any affiliate or
subsidiary of the lessee at the time of the initial marketing;



(9)  That the facility offered the lessee is intended
to accommodate expansion of an enterprise located elsewhere or a new enterprise
and not primarily the relocation of an existing facility;



(10)  That adequate provision is being made to meet any
increased demand upon community public facilities that might result from the
proposed project; and



(11)  That the issuance of the proposed bonds and the
operation of the enterprise of the lessee will not disrupt the fiscal stability
of the issuing political subdivision in the event it should become necessary
for it to assume responsibility for payment of the interest and principal of
the proposed economic development bonds. [L 1964, c 58, pt of §2; Supp,
§140A-4; HRS §48-3; am L 1974, c 254, §1(3); am L 1987, c 336, §7; am L 1990, c
293, §8]