STAND. COM. REP. NO. 57

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1256
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Transportation and Intergovernmental
Affairs, to which was referred S.B. No. 1256 entitled: 

     "A BILL FOR AN ACT RELATING TO AN INTERISLAND FERRY SYSTEM,"

begs leave to report as follows:

     The purpose of this measure is to appropriate funds for the
establishment of an interisland ferry system between the islands
of Maui and Molokai.

     Testimony in support of this measure was received from the
Department of Transportation (DOT), County Council for the County
of Maui, and Chamber of Commerce of Hawaii.

     Testimony indicated that the DOT needs $3.75 million for the
acquisition of a ferry vessel to establish an interisland ferry
system between the islands of Maui and Molokai.  The DOT is
currently pursuing Federal Transit Administration funding for
federal fiscal year 2000 in the amount of $3 million with a local
match of $750,000.  The proposed interisland ferry system would
provide a vital employment link between the islands of Maui and
Molokai by creating a low-cost alternative to travelling by plane
between the islands.  As a result, an interisland ferry system
would have a positive economic impact on both the islands of Maui
and Molokai.

     Your Committee has amended this measure by inserting
$750,000 as the amount being appropriated and clarifying that the

 
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                                   STAND. COM. REP. NO. 57
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amount appropriated is matching funds for the $3 million in funds
being pursued by the DOT from the Federal Transit Administration.

     As affirmed by the record of votes of the members of your
Committee on Transportation and Intergovernmental Affairs that is
attached to this report, your Committee is in accord with the
intent and purpose of S.B. No. 1256, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as S.B. No. 1256, S.D. 1, and be referred to the Committee
on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Transportation
                                   and Intergovernmental Affairs,



                                   ______________________________
                                   CAL KAWAMOTO, Chair

 
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