How the business improvement district association is set up and run

(a) There shall be a district association for each business improvement district established pursuant to the provisions of this chapter. The district association shall be a nonprofit corporation and shall have one or more classes of membership, voting or nonvoting. The purpose of the association shall be the carrying out of such activities as may be prescribed in the district plan. The articles of incorporation or bylaws of such association shall provide for voting representation of fee simple owners and lessees of land within the district and may provide that the votes of members who are owners of land be weighted in proportion to the assessment levied or to be levied against the parcels of land within the district and that members whose properties are exempt from the assessment are nonvoting members. Any board or association established for the purposes of carrying out the management and activities of the business improvement district shall neither be deemed to be a government department, agency, or a County, nor to be performing services on behalf of a government department, agency or County. (b) The district board shall be composed of representatives of fee simple owners, lessees of land, and tenants of commercial space within the district; provided, however, that not less than a majority of the district board members shall represent fee simple owners and lessees of land; and provided further that tenants of commercial space within the district shall also be represented on the district board. The district board shall also include the following, all of whom shall serve as the incorporators of the association pursuant to the Hawai‘i Nonprofit Corporations Act:* (1) The director of public works or the director’s designated representative, who shall be a nonvoting member; (2) The director of finance or the director’s designated representative, who shall be a nonvoting member; (3) The mayor or the mayor’s designee, who shall be a voting member; and (4) The council member of the district within which the majority of the land area within which the district is located or the council member’s designated representative, who shall be a voting member. (c) The district association may be incorporated prior to the effective date of any district established pursuant to this chapter. (d) In addition to such other powers as are conferred to it by law or this chapter, the district board shall have the power to carry out the activities prescribed in the district plan, including but not limited to: (1) Determining the scope and specifications for the performance standards; (2) Letting contracts for the supplemental services or for the management of operations of the district; (3) Entering into contracts for the development of plans, design, construction and/or renovation of supplemental improvements; and (4) Adopting the annual budget for the district. (2004, ord 04-94, sec 1.)35-18 Editor’s Note: The Hawai‘i Nonprofit Corporations Act is set forth in chapter 414D, Hawai‘i Revised Statutes.