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 S.B. No. 206 entitled:

begs leave to report as follows:

The purpose of this measure is to require the department of transportation to charge the same wharfage fees for cargo that is temporarily stored in Honolulu prior to being shipped to a neighbor island as is charged for cargo that is being transshipped to neighbor islands via Honolulu on a through bill of lading.

The Hawaii Food Industry Association and Young Brothers, Ltd., both submitted testimony supporting this measure. The Department of Transportation submitted testimony opposing this measure as unnecessary, due to the fact that the Department can make the same changes through amendments to its administrative rules.

Your Committee finds that there is currently a large discrepancy in the wharfage fees charged for cargo shipped to neighbor islands after a stop in Honolulu and interstate cargo shipped to neighbor islands on a through bill of lading.

Although the use of state facilities in both instances is the same, cargo temporarily stored in Honolulu incurs a much higher wharfage fee. Your Committee finds that this unfairly discriminates against local businesses and should be addressed by law.

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 S.B. No. 206 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.