STAND. COM. REP. NO. 80

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 849
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Transportation, to which was referred H.B.
No. 849 entitled: 

     "A BILL FOR AN ACT RELATING TO SPECIAL FACILITY REVENUE
     BONDS FOR AIRPORTS,"

begs leave to report as follows:

     The purpose of this bill, as received by your Committee on
Transportation, is to expand the scope of the term "special
facilities" in reference to special facility revenue bonds and
leases for airports.

     Your Committee finds that this amendment will be beneficial
for Hawaii's economy.  By allowing special facility revenue bonds
to be used for the construction and maintenance of facilities for
cargo operations, cargo facilities in Hawaii will increase.  This
amendment will encourage the cargo operations in Hawaii to
flourish, and, this, in turn, will provide for more job
opportunities and foster a better business climate for the State.

     This bill proposes to include the use of special facility
revenue bonds for the construction and maintenance of facilities
for cargo operations.

     Testimonies in support of this bill were heard from the
State Department of Budget and Finance, the Airlines Committee of
Hawaii, and Hawaiian Airlines.


 
 
 
                                 STAND. COM. REP. NO. 80
                                 Page 2

 
     Your Committee has amended this bill by changing "cargo" in
line 6 to read "air cargo."

     As affirmed by the record of votes of the members of your
Committee on Transportation that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
849, as amended herein, and recommends that it pass Second
Reading in the form attached hereto as H.B. No. 849, H.D. 1, and
be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Transportation,



                                   ______________________________
                                   KENNETH T. HIRAKI, Chair