Authorizes issuance of revenue bonds for improvements to harbor facilities for use by Rainbow Island Express to operate an inter-island and intra-island ferry service.

A BILL FOR AN ACT

SECTION 1. The legislature finds that inter-island maritime transportation for passenger service between Oahu, Maui, Lanai, Molokai, and Hawaii is insufficient. The legislature further finds that improvements to the State's harbors is necessary to enable a private ferry service to operate inter-island and intra-island.

Rainbow Island Express, a private entity engaged in maritime operations, has entered into a special facility lease with the department of transportation whereby the department agreed to construct improvements and equip special facilities used for maritime and marine operations by the entity. The lease contains provisions obligating the entity to pay the department rentals as a means of repaying the revenue bonds.

The legislature finds and declares that the issuance of revenue bonds under this Act is in the public interest.

SECTION 2. Pursuant to part III of chapter 39, Hawaii Revised Statutes, the department of transportation, with the approval of the governor, is authorized to issue revenue bonds in a total amount not to exceed $44,478,747, in one or more series for the purpose of making improvements and equipping facilities for use by Rainbow Island Express at harbor facilities on the islands of Molokai, Maui, Lanai, Hawaii, and Oahu to operate an inter-island and intra-island ferry service.

SECTION 3. The revenue bonds issued under this Act shall be issued pursuant to part III of chapter 39, Hawaii Revised Statutes.

SECTION 4. This Act shall take effect upon its approval.