Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Transportation, Military Affairs and Government Operations, to which was referred H.B. No. 1273, H.D. 2, entitled:

begs leave to report as follows:

The purpose of this measure as referred to your Committee was to require the Department of Transportation (DOT) to conduct a feasibility study of toll roads in each county.

Your Committee received testimony in support of this measure from the DOT along with a request for funding to conduct the study.

Your Committee initially deferred this measure in order to conduct further review. After consultations with the DOT your Committee prepared a proposed S.D. 1 version to appropriate $185,000,000 out of the airport revenue fund for defeasance of certain outstanding airports system revenue bonds.

Your Committee received testimony in support of the proposed S.D. 1 version of this measure from the DOT and the Airlines Committee of Hawaii.

Your Committee finds that the Airports Division of the DOT has been working on a debt restructuring program to reduce overall operating costs. As part of its restructuring, the Airports Division is proposing to utilize approximately $185,000,000 of its cash to defease certain outstanding portions of its revenue bonds. Your Committee finds that the defeasance is one part of the ongoing work being done to restructure the Airports Division's debt service obligations to reduce overall costs and assist in keeping landing fees stable and reasonable. Your Committee fully supports this effort, and has further amended the proposed S.D. 1 version to delete the provisions relating to toll roads.

As affirmed by the record of votes of the members of your Committee on Transportation, Military Affairs and Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1273, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1273, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.