§48-3  Certificate of convenience andnecessity.  No political subdivision may issue economic development bondswithout first having been issued a certificate of convenience and necessitytherefor.  The certificate shall be issued by the department of business,economic development, and tourism upon a petition of the governing body of thepolitical subdivision proposing to issue economic development bonds upon thedepartment finding:

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

(2)  That the lessee of the property is a responsibleparty;

(3)  That the contract for lease of the propertyprovides for:

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

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

(C)  The rights of the political subdivisionand the lessee respecting the disposition of the property financed by theproposed economic development bonds upon retirement of the bonds or terminationof the contract by expiration or failure to comply with any of the provisionsthereof;

(4)  In addition to the above, the contract mayprovide for the rights of the bondholders, the care and disposition of rentalreceipts, and such other safeguards as are deemed to be necessary by thedepartment;

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

(6)  That the proposed project will provide employmenthaving a reasonable relationship to the volume of the bonds issued as comparedto investment per employee of comparable facilities elsewhere in the privatesector;

(7)  That financing by banks, other financialinstitutions, or other parties, of the property required by the lessee is notreadily available to lessee on ordinary commercial terms in adequate amountseither on the local or the national market;

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

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

(10)  That adequate provision is being made to meet anyincreased demand upon community public facilities that might result from theproposed project; and

(11)  That the issuance of the proposed bonds and theoperation of the enterprise of the lessee will not disrupt the fiscal stabilityof the issuing political subdivision in the event it should become necessaryfor it to assume responsibility for payment of the interest and principal ofthe 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, c293, §8]