General Rules Regarding Development TITLE 15: DEPT. OF BUSINESS, ECONOMIC DEVELO

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DBPARTMPNT OF PLANNING AND RCONOMIC DPVBLOPMENT Adoption of Chapter 15-31 Hawaii Administrative Rules January 24, 1987 SUMMARY Chapter 15-31, Hawaii Administrative Ruler, entitlid "Eigh Technology Development Corporation", is adopted.

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. XAWAIX ADMINISTRATIVE RULES TITLB 15 DEPARTMBNT OF PLANNING AND RCONOMIC DEVBLOPMHNT SUBTITLB 6 HIGH TECHNOLOGY DEVELOPMENT CORPORATION CHAPTER 31 GRNBRAL RULBS REGARDING DBVELOPMBNT

Subchapter 1 Rules of General Applicability sec. 15-31-1 Purpose sec. 15-31-Z Definition8 sec. 15-31-3 Objectives Sec. 15-31-4 Office sec. 15-31-5 Office hours Sec. 15-31-6 Public records Sec. 15-31-7 Public information

Subchapter 2 Development Proposals Sec. 15-31-11 Development by the development corporation Sec. 15-31-12 Development by qualified persons Sec. 15-31-13 Initial proposal Sec. 15-31-14 Bvaluation and selection of initial proposals

Subchapter 3 Development Process Sec. 15-31-20 Formal proposal Sec. 15-31-21 Content of formal proposal Sec. 15-31~22 Updating formal proposal Sec. 15-31-23 Processing formal proporral Sec. 15-31-24 Conditions, covenants and restrictions Sec. 15-31-25 Bonds Sec. 15-31-26 Development rules Sec. 15-31-27 Initiation of development ruleraking Sec. 15-31-28 Rules Sec. 15-31-29 Notice

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Sec. 15-31-l

Sec. 15-31-30 Time and place . Sec. 15-31-31 Conduct of rulemaking hearings sec. 15-31-32 Emergency rulemaking Sec. 15-31-33 Petitions for adoption, amendment, or repeal of rules

Subchapter 4 Miscellaneous Sec. 15-31-40 Severability Sec. 15-31-41 Compliance with laws

SUBCHAPTER 1 RULES OF GENERAL APPLICABILITY

Sec. 15-31-1 Purpose. This chapter is adopted pursuant to chapter 91-HRS to implement chapter 206M HRS pertaining to the development of high technology enterprises in the State through the High Technology Development Corporation (hereinafter referred to as the development corporation) ,uhich has the authority to develop or to assist in the development of industrial parks for the location of high technology enterprises and to assist in the development and construction of facilities for high technology enterprises through the issuance of special purpose revenue bonds and through other means or assistance, including the establishrent of rules pertaining to health, safety, building, planning, zoning and land use laws, ordinances, codes, or designations on its own behalf or for qualified persons. ] (Auth: HRS Sets. 206#-3, 206W5) (Imp: . 206M-3, 206M-5)

Sec. 15-31-2 Definitions. As used in this chapter, terns shall be as defined in section 206M-1, HRS, unless a different meaning clearly appears in the context. Jf-f rw 2 0 1987 ] (Auth: HRS Sec. 206M-3) (Imp: HRS Sec. 206M-3)

Sec. 15-31-3 Objectivea. The High Technology Development Corporation shall have the following general objectives:

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. (1) To promote high technology as 5 viable and desirable industry in the State; (2) To develop industrial parka for the location of high technology enterprises and supporting commercial enterprises and activities; (3) To assist high technology enterprises and supporting commercial enterprises and activities in connection with the construction and equipping of facilities; (4) To issue special purpose revenue bonds to provide financing for the development, construction and equipping of industrial parks, high technology enterprises and supporting commercial enterprises and activities; (5) To encourage high technology enterprises to locate in the State. [Eff MAR20HF; secs 1 (Auth: BRS Sec. 206W3) (Imp: . 206M-3)

Sec. 15-31-4 Office. The office of the developrent corporation is located at 220 South King Street, Central Pacific Plaza, Honolulu, Hawaii 96813. All communications to the development corporation shall be addressed to the above address or to post office box 2359, Honolulu, Hawaii 96804, unless otherwise specifically directed. fsff ffAR20 1987 ] (Auth: ERS Sec. 206M-3) (Imp: HRS Sec. 206M-3)

Sec. 15-31-5 Office hours. The office of the development corporation shall be open from 7:45 a.m. to 4:30 p.m. Monday through Friday, unless otherwise provided. [Bff fljjR 20 1987 ] (Auth: HRS Sec. 206M-3) (kp: ERS Sec. 2!6M-3)

Sec. :15-31-6 Public records'. All public records shall be available for inspection in the development corporation'5 office. Any request for public records 'in the custody and possession of the development office shall be in writing. Copies of such public records may be made upon payment of fees established by the board from tire to tire. [Eff MAR20 R8f ] (Auth: HRS Sec. 206M-3) (Imp: HRS Sec. 206M-3)

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Sec. 15-31-7

Sec. 15-31-7 Public information. The chief administrative officer may disseminate information about the development corporation so that the provisions of chapter 206M, HRS, may be.understood and effectively implemented. [Rff &&z: :J I (Auth: HRS Sec. 206M-3) (Imp: HRS Sec. 206M-3)

SUBCHAPTER 2

DEVELOPMENT PROPOSALS

Sec. 15-31-11 Development by the development corporation. The development corporation may develop on its own or may provide financial and other assistance to qualified persons for the development of industrial parks and projects. [Bff MAR20 1987 1 (Auth: HRS Sec., 206M-3) (Imp: HRS Sec. 206&l-3)

Sec. 15-31-12 Development by qualified persons. The development of industrial parks or projects initiated by qualified persons shall be processed in accordance with these rules. [ Bff flAR2 0 1987 ] (Auth: HRS Sec. 206M-3) (hp: HRS Sec. ZOSM-3)

Sec. 15-31-13 Initial ProPosal. Persons interested in seeking financial or other assistance from the developrent corporation for the development of an industrial park or project shall submit three initial proposals to the development corporation. Unless otherwise specified, the form of the initial proposal should be typewritten on 8'1/2 x 11 inch paper and shall be signed by the interested person under penalties of perjury. Bxhibits to the initial proposal ray be larger than 8 l/2 x 11 inches provided they are neatly subritted and identified. The initial proposal shall include the following information: (1) The identity and address of the applicant and the principal members of the applicant; (2) The expertise, experience and background of the applicant and principal members of the applicant in connection with the development and operation of an industrial park or project;

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(3) Current certified financial statement of the applicant and of the principal members.of ' the applicant who will be guaranteeing any of the financial obligations of the applicant; (4) The location and description of the proposed industrial park or project and the names and addresses of all current legal or equitable owners of the land upon which such proposed industrial park or project will be situated. A description of current health, safety, building, planning, zoning and land use matters currently affecting the land; (5) The development concept of the industrial park or project: (6) The ,identity and addresses of the . applicant’s proporred development tear; (7) Market and feasibility studies and projections on th'e industrial park or project; (8) The proposed sources of interir and permanent financing for the project and any financial assistance and other assistance, such as research, facilities, or health, safety, building, planning, zoning, and land use Iatters, which the development corporation will be requested to assist with or to take action upon; (9) A statement of the community's position with regard to the proposed industrial park or project and how the industrial park or project will be integrated into the . immediate surrounding area; (10) Bnvironrental cbac&aa environmental assearsrent or environmental impact statement as deemed necessary; (11) Other supporting exhibit8 and information, including preliminary cost estimates, feasibility studies, marketability studies,, surveys, plans and specifications, maps, and the.ranagerent and disposal. of any hazardous wastes; (12) The applicant's agreement with respect to the following matters: (A) To pay all costs, expenses or liabilities which the development corporation incurs or becomes liable for in connection with the proposed

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development of the industrial park or project, and, if required by the development corporation, to deposit funds in advance with the development corporation which the development corporation can use without restriction in connection with evaluating the development of. the industrial park or project; (B) To agree that the development 1 corporation is not under any obligation to issue any commitment to the applicant nor is the development corporation liable to the,applicant for any costs, expenses or other liability; The development corporation may require that an industrial proposal fee be paid at the time that the initial proposal is submitted to cover the development corporation's coat for revieying the industrial -proposal. Any item of information, which is not applicable, is not available, or has been estimated, should be identified as such. 1g f f t?AR2 0 1987 ] (Auth: XRS Sec. 206M-3) (Imp: HRS Sec. 206M-3)

Sec. 15-31-14 Bvaluation and selection of initial Rropoaala. (a) The development corporation shall time stamp initial proposals as they are received. The development corporation's'ataff shall review and analyze each initial proposal as to whether the initial proposal is potentially feasible in terms of appropriateness, technical compliance and feasibility, and availability of funds or other resources from the development corporation. The staff shall also analyze whether the initial proposal will beat fulfill the intent of chapter 206M, HRS, and can meet minimum standards of health, safety, building, planning, zoning and land use matters. The staff may request that the applicant submit additional information to the development corporation. After reviewing an initial proposal, the development corporation staff shall make one the following recommendations to the chief executive officer: (1) The initial proposal is potentially feasible; (2) The initial proposal should be rejected; (3) Action on the initial proposal should be deferred or referred for further review.

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(b) The chief executive officer shall review the staff’s recommendation and make a recommendation’to the board. The chief executive officer is not bound by the staff’s recommendation. (c) The board will review and consider the chief executive officer’s recommendation. Not later than ninety days after the last of any information which the applicant has submitted or has been requested to aubnit has been received by the development corporation, the board will inform the applicant of the board's decision. The board reserves the right to request the applicant to submit additional information. The board is not required to accept the chief executive officer’s recommendation. Any applicant whose initial proposal is rejected by the board may reapply or resubmit to the development corporation the same or revised proposal. The resubmission shall occur within sixty days following the board's rejection of the initial proposal. g3pg&7M-3,~ lAuth: HRS Sec. 2b6ML3) *(Imp:

SUBCHAPTRR 3

DBVBLOPMBNT PROCESS

Sec. 15-31-20 Formal proposal. If the board determiaea that an initial proposal is potentially. feasible, the board shall notify the applicant of such determination and ahall request the applicant to file a formal pioposal: EBff MAR20 1987 ] (Adth: HRS Sec. 20631-3) (Imp: HRS Sec. 206M-3)

Sec. 15-31-21 Content of formal proposal. The formal proposal will contain all of the information contained in the initial proposal. In addition the formal proposal will contain plans, specifications and technical information relating to the development of the proposed industrial park or project. [Bff HAR20 13JJ (Auth: HI+ Sec. 2TJ6M-3) .(fnp: Sec. 206#-3)

Sec. 15-31-22 Updating formal proposal. The applicant shall be under a continuing duty to update the information which is submitted in the formal

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proposal to the development corporation on its own and upon request by the development corporation. [Eff Ilf!422 6 19d7 ] (Auth: HRS Sec. 206M-3) (Imp: HRS Sec. 206M-3)

Sec. 15-31-23 Processing formal proposal. After the applicant's formal proposal has been received, the development corporation staff will proceed to review and analyze the formal proposal and enter into negotiations with the applicant for a project agreement. [Eff )IAR20 iJ67 ] (Auth: HRS Sec. 206W3) (Imp: HRS Sec. 206M-3)

Sec. 15-31-24 Conditions, covenants. and restrictions. The use and operation of industrial parka and projecta for high technology shall be monitored and enforced through a written agreement duly recorded with the bureau of conveyances between the qualified person and the development corporation. The agreement shall contain conditions, covenants, and restrictiona governing the use and operation of the industrial park or project that are acceptable to the development corporation and provisions affording the development corporation.to exercise any and all rights provided by law, including without limitation the assessment of fines and penalties with respect to any breach of any covenants, conditions, and restrictions by the qualified person or occupants of the park. The development corporation shall also have the right to bring en action at law or in equity, including seeking injunctive relief, for the purpose of enforcing its rights, under the project agreement and conditions, covenants and restrictions. fgff ffAR20 1981 1 (Auth: XRS Sec. 206M-3) (Imp: HRS Sec. 206&t-3)

Sec. 15-31-26 Bonda. (a) As contained in section 206M-9, RRS, the development corporation may f,inance all or a part of the coat of developing, constructing and equipping a project or industrial park with loans, including construction end permanent loans, to qualified persona with funds raised through. the issuance of bonds. (1) If the development and construction of an industrial park, a project or a rulti-project program is propoaed to be

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Sec. 15-31-26

financed through the issuance of bonds, the development corporation shall submit to the governor of the State a request that bonds be issued. (2) If the governor's approval is obtained, the request that bonds be issued for the industrial park, project or multi-project program shall be aubritted to the legislature for its authority to issue bonds. (b) As part of any request seeking the governor's approval and the legislature's authority to issue bonds to finance all or a pert of the cost of developing, constructing or equipping an industrial park, the developrent corporation ray also include a request for the governor's approval and the legislature's authorization to faaue additional bonds, which the development corporation enticipetea will be necessary end advisable for the purpose of having financing available to persona,-who desire to finance the coat of developing, constructing and equipping all or e pert of any project in the industrial perk through bond financing and who will be applying for such financial assistance as a qualified person under these rules. The developrent corporation ray issue such additional bonds in such principal amounts as the governor has approved and the legislature has authorized at such tire or tirea as the development corporation deems necessary end advisable to finance all or part of the cost of any project in the industrial park. [Bff i'i.Akzu w' ] (Auth: BRS Sec. 206M-3) (Imp: BRS Sec. 206M-3)

Sec. 15-31-26 Develorment rules. (a) The development corporation ahall review the qualified person's development concept and shall adopt development rules in accordance with section 206M-5, HRS, to be followed during the course of the development of any induatrial park, project or multi-project program: (1) Whenever the proceeds of bonds are used to finance all or,eny*pert of the coat of en industrial park, project or multi-project progrer; or (2) Upon the qualified person's request and upon the development corporation's determination that the adoption of development rules is

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Sec. 15-31-26

desirable and in furtherance of the purposes end, objectives of the development corporation. (b) From tire to tile if all or any portion of the land already meets or complies with health, safety, building, planning, zoning, and lend use ordinances or rules of the county in which the industrial park, project or multi-project prograa is situated, designations of the use or uses shall follow those rules accordingly and be a pert of the development rules for the industrial perk. If any portion of the land does not reet or corply with health, safety, building, planning, zoning and land use codes or regulations of the county in which the industrial park, project or multi-project program is situated, the development corporation shall adopt development rules on health, safety, building, planning, zoning and land use which relate to the proposed developient of the industrial park upon finding that the proposed industrial park is consistent with the purpose and intent of chapter 206M and reet rinirur requirements of design, pleaaant amenities, health, safety and coordinated development. The development rules ahall be exempt from and shall supersede all inconsistent laws, ordinances and rules relating to the use, zoning, planning, and development of land. [gff H/JR20 ig8? 1 (Auth: HRS Sec. 206M-3) (Imp: BRS Sec. 206W3)

Sec. 15-31-27 Initiation of development rulemaking. During the course of the development of any industrial park, the development corporation shell initiate development rul,eraking proceedings in accordance with the provisions of Chapter 91 and section 20633-5, HRS, [ Bff 8&i 2 0 1987 ] (Auth: HRS Sec. 206&3) (Imp: HRS Sec. 206M-3)

Sec. 15-31-28 Rules. The rules shall define and establish rattern relating to the health, safety, building, planning, zoning and lend use, aa applicable, and descriF;f:ow ;~a r;8Ylealri~~u~gplyR~~ the industrial park. : Sec. 206M-3) (IMP: HRS Sec. 206M-3)

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Sec. 15-31-30

Sec. 15-31-29 Notice. ,(a) Notice of proposed rulemaking shall be published at least once in a newspaper of general circulation in the State and in each county affected by the proposed rule. (b) The notice of proposed issuance, aaendnent or repeal of a rule shall include: (1) A statement of the date, time, and place where the public hearing shall be held. The hearing shall be held at a tire which is not less than twenty days but not more than forty-five days after the date the notice is first published; (2) Reference to the authority under which the issuance, arendrent or repeal or a rule is proposed; (3) A statement of the substance of the proposed ruleraking; (4) In the case of establishing development rules under section 20684-5, HRS, a statement of the tire-end place where information pertaining to the development of the iirdustrial perk or project ray be inspected prior to the public hearing. (4 A copy of the notice shall be given to the legislative body end to the planning department of the county in which the industrial perk or project is 8ituated, to adjoining ~endowncr8 end to any person having en intere8t in the property upon which the propo8ed indtmtriel perk, project or multi-project prOgraB i8 8itueted. (d) The development corporation ray require more then one publication of notice or propo8ed rulemaking in a newspaper of general circulation. (Eff flAR20 1987 ] (Auth: HRS Sec. 206W3) (Imp: HRS Sec. 206?4-3)

Sec. 15-31-30 Tire and Place. Hearings shell be held et the time end place 8et in the notice of hearing, but ray et that tire and place be continued by the board from day to day or adjourn to a later date or to a different place without notice other than the announcement at the hearing. Where the proposed ruleraking affects only one county, the public hearing will be held in that county. (Auth: HRS Sec. 206M-3) (Up:

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Sec. 15-31-31

Sec. 15-31-31 Conduct of rulemaking hearings. (a) Each hearing shall be presided over by the chairperson of the board or-by,its designated . representative. The hearing shall be conducted in such a way as to afford to interested persons a reasonable opportunity to be heard on matters relevant to the issues involved and to obtain a clear and orderly record. The presiding officer shall have authority to administer oaths or affirmations and to take all other actions necessary to the orderly conduct of the hearing. (b) At the commencement of the hearing, the presiding officer shall read the pertinent portions of the notice of the hearing and shall then outline briefly the procedure to be followed. Evidence shall then be received with respect to the matters specified in the notice of hearing in the order the presiding officer shall prescribe. (c) All interested persons shall be given reasonable opportunity to offer evidence with respect to the matter8 specified in the notice of hearing. Every witnesr ray, before proceeding to testify, be sworn, and may be required thereafter to state the witness’ name, address, end whom the witness ’ represent8 at the hearing, and give any other information respecting the witness' appearance as the prCsiding officer ray request. The presiding officer shall confine the evidence to the questions before the hearing but shall not apply the technical rules of evidence. Every witness rhall be subject to questioniag by the presiding officer or by any other representatives of the board, but cro88-examination by private persona shall not be permitted except if the presiding officer expressly pemits it. (d) All intere8ted persons or agencies of the State or its political subdivisions shall be afforded an opportunity to submit date, views or arguments which are relevant to the issue8. In addition, or in lieu thereof, persons or agencies ray also file with the board within fifteen days following the close of public hearing a written protest or other comments or recorrendet’ion8 in support of or in opposition to the proposed ruleraking. Persons designated by the presiding officer shall be furnished with copie8 of any written protest or other comments or recommendations, and they shell be afforded a reasonable time within which to file their comments in reply to the original protest, comments, or

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recommendations. Written protest, comments, or recommendations or replies thereto shall not be accepted unless an original and ten copies (or lesser number of copies as may be specifically agreed to by the presiding officer) are filed. The period for filing wiitten protest, comments, or recommendations may be extended by the presiding officer for good cause. (e) Unless otherwise specifically ordered by the board or the presiding officer, testimony given at the hearing need not be reported verbatir. All supporting written statements, maps, cherts, tabulations, or similar data offered in evidence at the hearing, and which are deemed by the presiding officer to be authentic and relevant, shall be received in evidence and aade a part of the record. Unless the presiding officer finds that the furnishing of the required number of copies iipracticable ahd reduce8 the nuaber, eleven copies of the exhibits rhell be submitted. (f) At the close of the final public hearing, the board shall announce the date when it8 decision shall be announced, or the board ray, if it so desires, make the decision et the public hearing. The board shall consider all relevant coaaents end aateriel of record before taking final action in a rulereking proceeding. (g) The board shall adopt the development rules as’is or with modifications end direct the chief executive officar to irpleaent 8uch developaent rules. fBff )IAR20 1987 ] (Auth: HRS Sec. 206M-3) (Inp: ERS Sec. 206M-3)

Sec. 15-31-32 Brerltencv ruleraking. Notwithstanding sections 15-31-l to 15-31-31, if the board finds that an imminent peril to public health, safety, or rote18 requires adoption, arendrent, or repeal of a rule upon It88 then twenty days' notkce of hearing, end 8tate8 in writing its reason for the . finding, it ray proceed without prior notice or hearing or upon an abbreviated notice and hearing to adopt an ererg'ency rule to be effective for a period not longer then one-hundred and ten day8 without renewal. @ff ffhl 20 1987 ] (Auth: RRS Sec. 206M-3) (1s~: ERS Sec. 206M-3)

.Sec. 15-31-33 Petition8 for .adoDtion. amendlent, or repeal of rules. (a) Any interested person or any

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agency of the State or county government may petition the board for the issuance, amendment, modification, or repeal of any rule which is designed to implement, interpret, or prescribed by law, policy, organization, procedure, or practice requirement of the board. (b) Petitions for rulenaking shall sit forth the text of any proposed rule or amendment desired or specifying the rule the repeal of which is desired and stating concisely the nature of the petitioner’s interest in the subject matter and the reasons for seeking the issuance, amendment, or repeal of the rule and shall include any facts, views, arguments, and data deemed relevant by petitioner. The board may require the petitioner to adequately and properly notify persons or governmental agencies known to be interested in the proposed ruleaaking of the existence of the filed petition. No request for the issuance, amendment, modification, or repeal of a rule which does not conform to the requirerents set forth above 1 shall be considered by the board. Where the board determines that the petition does not disclose sufficient reasons to justify the institution of public rulemaking procedures, or where the petition for ruleraking fails in material respect to comply with the requirements of these rules, the petitioner shall be so notified together with the grounds for the denial. The provisions of this section shall not operate to prevent the board, on its own motion, front acting on any matter disclosed in any petition. [Eff MAR20 W ] (Auth: HRS Sec. 206M-3) (Imp: HRS Sec. 206M-3).

SUBCHAPTER 4 MISCBLLANBOUS

Sec. 15-31-40 Severability. If any part, section, sentence, clause, or phrase of these rules, or its application to any person or transaction or other circunstances, is for any reason held to be unconstitutional or invalid, the remaining parts, .sections, sentences, clauses, and phrases of these rules, or the application of these rules to other persons or transactio or circuastances shall not be affected. [Eff MARzfffh ] (Auth: HRS Sec. 206M-3) (IRP: ERS Sec. 20684-3)

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Sec. 15-31-41 Compliance with laws. The board may waive any provision of these rules to comply with applicable federal or state laws, ordinances, etc., which have not been preempted. [Eff MAR20 1963 1 (Auth: XRS Sec. 206M-3) (Imp: HRS Sets. 206M-4 and 206M-5)

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STATB OF HAWAII DBPARTMBJJT OF PLANNING AND ECONOMIC DBVSLOPMRNT

Chapter 15-31, Hawaii Administrative Rules, on the Summary Page dated January 24, 1987, was adopted on January 24, 1987, following a public hearing held on Noveaber 24, 1986, after public notice was given in the Bonolulu Advertiser on November 3, 1986, and in the Honolulu Star Bulletin on November 3, 1986. This chapter ehall take effect ten days after filing with the Office of the Lieutenant Governor.

y Developrent Corporation Board of Director

APPROVED:

John Waihce Governor .... State of Hawaii ' -2 Dated: ptARo9 I987

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Filed *i -.I : 4 -D... -. -3 -. -- . -1 % .:

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