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. 625 entitled:

begs leave to report as follows:

The purpose of this measure as referred to your Committee was to extend preferential consideration for inter-island ferry service operators to all small boat harbors throughout the State.

Your Committee received testimony from the Department of Land and Natural Resources (DLNR) recommending that this measure be amended.

Your Committee recognizes that there are few options for persons traveling between neighboring islands, and that the State should encourage inter-island ferry service operators. Existing law provides a statutory preference at Lahaina harbor for inter-island ferry service operators traveling between Maui and Molokai.

This measure originally proposed to extend that preference to all small boat harbors throughout the State. Your Committee finds that the small boat harbors on Oahu and Lanai are not equipped to accommodate vessels of the size proposed for inter-island ferry service, and that extending a preference to the island of Hawaii may interfere with the existing Certificate of Public Necessity and Convenience for the Maui/Molokai ferry service.

Therefore, your Committee amended this measure based on the testimony of DLNR to extend the commercial preference only to Maalaea harbor on Maui, in addition to Lahaina harbor.

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. 625, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 625, S.D. 1, and be placed on the calendar for Third Reading.