STAND. COM. REP. NO. 537-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2616
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No.
2616 entitled: 

     "A BILL FOR AN ACT RELATING TO CONCESSIONS ON PUBLIC
     PROPERTY,"

begs leave to report as follows:

     The purpose of this bill is to provide flexibility in
securing concessionaires by:

     (1)  Allowing state and county agencies to select the most
          feasible method of contracting for concessions by
          allowing them the option to enter into concession
          contracts by competitive sealed proposals; and

     (2)  Clarifying that concessions do not have to be only
          retail in nature and include services such as
          advertising, communications, and telecommunications. 

     The City and County of Honolulu submitted testimony in
support of this bill.  The Department of Transportation submitted
testimony in support of the intent of this bill.

     Your Committee finds that the definition of "concession"
should be expanded to include "land" in addition to "in or on
buildings" because there are operations which do not utilize
buildings, such as mobile lunch wagons or stadium flea market
stands.  Your Committee further finds that there are situations

 
 
 
                                 STAND. COM. REP. NO. 537-00
                                 Page 2

 
where governmental agencies should have the flexibility to extend
temporary concession permits.
 
     Upon further consideration, your Committee has amended this
bill by:

     (1)  Clarifying that government agencies have jurisdiction
          over concessions that are located on "land" in addition
          to those located "in or on buildings";

     (2)  Providing that government agencies have the authority
          to extend concession permits for additional periods in
          the event that the premises are under construction,
          renovation, or being prepared for a new use; and

     (3)  Making technical, nonsubstantive amendments for
          purposes of clarity and style.
 
     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
2616, as amended herein, and recommends that it pass Second
Reading in the form attached hereto as H.B. No. 2616, H.D. 1, and
be placed on the calendar for Third Reading.

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



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair