§261-7  Operation and use privileges. (a)  In operating an airport or air navigation facility owned or controlled bythe department of transportation, or in which it has a right or interest, thedepartment may enter into contracts, leases, licenses, and other arrangementswith any person:

(1)  Granting the privilege of using or improving theairport or air navigation facility or any portion or facility thereof or spacetherein for commercial purposes;

(2)  Conferring the privilege of supplying goods, commodities,things, services, or facilities at the airport or air navigation facility;

(3)  Making available services, facilities, goods,commodities, or other things to be furnished by the department or its agents atthe airport or air navigation facility; or

(4)  Granting the use and occupancy on a temporarybasis by license or otherwise any portion of the land under its jurisdictionwhich for the time being may not be required by the department so that it mayput the area to economic use and thereby derive revenue therefrom.

All the arrangements shall contain a clausethat the land may be repossessed by the department when needed for aeronauticspurposes upon giving the tenant temporarily occupying the same not less thanthirty days' notice in writing of intention to repossess.

(b)  Except as otherwise provided in thissection, in each case mentioned in subsection (a)(1), (2), (3), and (4), thedepartment may establish the terms and conditions of the contract, lease,license, or other arrangement, and may fix the charges, rentals, or fees forthe privileges, services, or things granted, conferred, or made available, forthe purpose of meeting the expenditures of the statewide system of airports setforth in section 261-5(a), which includes expenditures for capital improvementprojects approved by the legislature.  Such charges shall be reasonable anduniform for the same class of privilege, service, or thing.

(c)  The department shall enter into a contractwith no more than one person ("contractor") for the sale and deliveryof in-bond merchandise at Honolulu International Airport, in the mannerprovided by law.  The contract shall confer the right to operate and maintaincommercial facilities within the airport for the sale of in-bond merchandiseand the right to deliver to the airport in-bond merchandise for sale todeparting foreign-bound passengers.

The department shall grant the contractpursuant to the laws of this State and may take into consideration:

(1)  The payment to be made on in-bond merchandisesold at Honolulu International Airport and on in-bond merchandise displayed orsold elsewhere in the State and delivered to the airport;

(2)  The ability of the applicant to comply with allfederal and state rules and regulations concerning the sale and delivery ofin-bond merchandise; and

(3)  The reputation, experience, and financialcapability of the applicant.

The department shall actively supervise theoperation of the contractor to ensure its effectiveness.  The department shalldevelop and implement such guidelines as it may find necessary and proper toactively supervise the operations of the contractor, and shall includeguidelines relating to the department's review of the reasonableness ofcontractor's price schedules, quality of merchandise, merchandise assortment,operations, and service to customers.

Apart from the contract described in thissubsection, the department shall confer no right upon nor suffer nor allow anyperson to offer to sell, sell, or deliver in-bond merchandise at Honolulu InternationalAirport; provided that this section shall not prohibit the delivery of in-bondmerchandise as cargo to the Honolulu International Airport.

(d)  The department, by contract, lease, orother arrangement, upon a consideration fixed by it, may grant to any qualifiedperson the privilege of operating, as agent of the State or otherwise, anyairport owned or controlled by the department; provided that no such personshall be granted any authority to operate the airport other than as a publicairport or to enter into any contracts, leases, or other arrangements inconnection with the operation of the airport which the department might nothave undertaken under subsection (a).

(e)  The department may fix and regulate, fromtime to time, reasonable landing fees for aircraft, including the imposition oflanding surcharges or differential landing fees, and other reasonable chargesfor the use and enjoyment of the airports and the services and facilitiesfurnished by the department in connection therewith, including theestablishment of a statewide system of airports landing fees, a statewidesystem of airports support charges, and joint use charges for the use of spaceshared by users, which fees and charges may vary among different classes ofusers such as foreign carriers, domestic carriers, inter-island carriers, airtaxi operators, helicopters, and such other classes as may be determined by thedirector, for the purpose of meeting the expenditures of the statewide systemof airports set forth in section 261-5(a), which includes expenditures forcapital improvement projects approved by the legislature.

In setting airports rates and charges,including landing fees, the director may enter into contracts, leases,licenses, and other agreements with aeronautical users of the statewide systemof airports containing such terms, conditions, and provisions as the directordeems advisable.

If the director has not entered into contracts,leases, licenses, and other agreements with any or fewer than all of the aeronauticalusers of the statewide system of airports prior to the expiration of anexisting contract, lease, license, or agreement, the director shall set andimpose rates, rentals, fees, and charges pursuant to this subsection withoutregard to the requirements of chapter 91; provided that a public informationalhearing shall be held on the rates, rentals, fees, and charges.

The director shall develop rates, rentals,fees, and charges in accordance with a residual methodology so that thestatewide system of airports shall be, and always remain, self-sustaining.  Therates, rentals, fees, and charges shall be set at such levels as to producerevenues which, together with aviation fuel taxes, shall be at least sufficientto meet the expenditures of the statewide system of airports set forth insection 261-5(a), including expenditures for capital improvement projectsapproved by the legislature, and to comply with covenants and agreements withholders of airport revenue bonds.

The director may develop and formulatemethodology in setting the various rates, rentals, fees, and charges imposedand may determine usage of space, estimate landed weights, and apply suchportion of nonaeronautical revenue deemed appropriate in determining the rates,rentals, fees, and charges applicable to aeronautical users of the statewidesystem of airports.

The rates, rentals, fees, and chargesdetermined by the director in the manner set forth in this subsection shall bethose charges payable by the aeronautical users for the periods immediatelyfollowing the date of expiration of the existing contract, lease, license, oragreement.  If fees are established pursuant to this section, the departmentshall prepare a detailed report on the circumstances and rates and charges thathave been established, and shall submit the report to the legislature no laterthan twenty days prior to the convening of the next regular session.

If a schedule of rates, rentals, fees, andcharges developed by the director in accordance with this section is projectedby the department to produce revenues which, together with aviation fuel taxes,will be in excess of the amount required to meet the expenditures of thestatewide system of airports set forth in section 261-5(a), includingexpenditures for capital improvement projects approved by the legislature, andto comply with covenants and agreements with holders of airport revenue bonds,the department shall submit the schedule of rates, rentals, fees, and chargesto the legislature prior to the convening of the next regular session of thelegislature.  Within forty-five days after the convening of the regularsession, the legislature may disapprove any schedule of rates, rentals, fees,and charges required to be submitted to it by this section by concurrentresolution.  If no action is taken by the legislature within the forty-five-dayperiod the schedule of rates, rentals, fees, and charges shall be deemedapproved.  If the legislature disapproves the schedule within theforty-five-day period, the director shall develop a new schedule of rates,rentals, fees, and charges in accordance with this section within seventy-fivedays of the disapproval.  Pending the development of a new schedule of rates,rentals, fees, and charges, the schedule submitted to the legislature shallremain in force and effect.

Notwithstanding any other provision of law tothe contrary, the department may waive landing fees and other aircraft chargesestablished under this section at any airport owned or controlled by the Statewhenever:

(1)  The governor declares a state of emergency; and

(2)  The department determines that the waiver oflanding fees and other charges for the aircraft is consistent with assisting inthe delivery of humanitarian relief to disaster-stricken areas of the State.

(f)  To enforce the payment of any charges forrepairs or improvements to, or storage or care of any personal property made orfurnished by the department or its agent in connection with the operation of anairport or air navigation facility owned or operated by the department, thedepartment shall have liens on the property, which shall be enforceable by itas provided by sections 507-18 to 507-22.

(g)  The department from time to time mayestablish developmental rates for buildings and land areas used exclusively forgeneral aviation activities at rates not less than fifty per cent of the fairmarket rentals of the buildings and land areas and may restrict the extent ofbuildings and land areas to be used.

(h)  Notwithstanding any laws to the contrary,the department may establish, levy, assess, and collect rental motor vehiclecustomer facility charges, which shall be paid to the department periodicallyas determined by the department.  These charges shall be used to pay for, orfinance on a long-term basis where appropriate, the design, planning,construction, and other uses of the rental motor vehicle customer facilitycharges as set forth by the rental motor vehicle customer facility chargespecial fund in section 261-5.6.

The rental motor vehicle customer facilitycharges shall be levied, assessed, and collected from all rental motor vehiclecustomers who benefit from the use of any type of rental motor vehicle facilityor service provided by the department at a state airport.

All rental motor vehiclecustomer facility charges shall be collected by lessors as defined in section437D-3 and who operate a car rental concession awarded by the department at astate airport; provided that customers of lessors, as defined in section437D-3, who do not operate a car rental concession at a state airport but whosecustomers benefit from the use of a car rental facility or service at a stateairport paid for by rental motor vehicle customer facility charges, shallcollect from such car rental customers, rental motor vehicle customer facilitycharges in an amount determined by the department that represents a fair shareof the cost and ongoing expenses relating to customer use of such a facility orservice.  All rental motor vehicle customer facility charges collected by suchlessor shall be paid to the department.

Notwithstanding any law to the contrary, thedepartment may contract the management, maintenance, and operations of thefacility and related services with airport concessions or their designee thatshare in the use of a rental motor vehicle customer facility at a stateairport. [L 1947, c 32, pt of §1; am L 1949, c 374, §1; am L 1953, JR 14, §1;RL 1955, §15-12; am L Sp 1959 2d, c 1, §26; am L 1962, c 24, §§4, 5; HRS§261-7; am L 1968, c 20, §§3, 4; am L 1972, c 14, §1; am L 1976, c 235, §2; amL 1981, c 243, §2; am L 1982, c 90, §2; am L 1986, c 339, §24; am L 1994, c 62,§1; am L 1995, c 99, §1; am L 2008, c 226, §7]

 

Note

 

  Additional $1 per day rental motor vehicle customer facilitycharge.  L 2008, c 226, §9.

 

Case Notes

 

  Provides department with implied authority to enter intoexclusive lease at airport.  745 F.2d 1281.

  No appeal lies under §261-13(c) from a grant of airportconcession to another pursuant to subsection (a)(2).  47 H. 495, 393 P.2d 87.