STAND. COM. REP. NO.939

Honolulu, Hawaii

, 2001

RE: S.B. No. 1199

S.D. 2

H.D. 1

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Transportation, to which was referred S.B. No. 1199, S.D. 2, 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 give government agencies more flexibility in managing its concession program and to clarify and update its procedures by:

(1) Amending the definition of "concession" to include the sale of services, such as advertising and communication and telecommunication services;

(2) Authorizing the issuance of revocable permits for up to one year; and

(3) Authorizing concession contracts for parking lot operations by competitive sealed proposal where it is determined that competitive sealed bidding is not practical or advantageous to the awarding government agency.

 

HMSHost, DFS Hawaii, and Greeters of Hawaii testified in support of the bill. The Department of Transportation, Airport Concessionaires Committee, Catrala-Hawaii, National Car Rental, Alamo Rent A Car, Hertz Corporation, Island Shoppers, Inc., testified in support of the bill with amendments.

Your Committee finds from the testimony that the "top dollar" bidding process is preferred over the competitive sealed proposal procedure. Accordingly, after careful consideration, your Committee has amended this measure by:

(1) Providing that concession contracts for rental car operations shall be by competitive sealed bids, thereby avoiding political influence and abuse in the bidding process;

(2) Deleting the provision to make parking lot operations subject to the competitive sealed proposal process; and

(3) Making technical nonsubstantive amendments for purposes of clarity, style, and continuity.

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 S.B. No. 1199, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1199, S.D. 2, H.D. 1, and be referred to the Committee on Finance.

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

____________________________

JOSEPH M. SOUKI, Chair