HI SB658

Establishes the Hawaii Airport Corporation as an independent public instrumentality within the Department of Transportation, effective July 1, 2018, to consolidate fragmented airport management and aeronautics functions currently distributed across multiple state agencies.

Creates a nine-member board of directors with one representative from each county (Hawaii, Kauai, Maui, and Honolulu) appointed by the governor, plus five at-large members with relevant business and management experience in aviation, tourism, finance, or construction.

Grants the corporation broad powers to own, lease, develop, operate, and maintain all state airports and aeronautical facilities; set fees and rates; issue revenue bonds; and conduct capital improvement projects without requiring annual legislative appropriation.

Transfers all airport-related functions, employees, assets, contracts, and liabilities from the Department of Transportation's airports division to the corporation on July 1, 2018, with employees retaining civil service status, seniority, and all earned benefits.

Exempts the chief executive officer from civil service requirements and designates them as the corporation's chief procurement officer with authority to hire employees, approve budgets, and manage operations under board direction.