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. 755, S.D. 2, entitled:

begs leave to report as follows:

The purpose of this bill is to allow the Department of Transportation (DOT) and Board of Land and Natural Resources (BLNR) to enter into capital advancement contracts with private developers for harbor facility improvements in their respective commercial harbor and small boat harbor jurisdictions. The bill:

Your Committee received testimony in strong support of this bill from the Chamber of Commerce of Hawaii, American Classic Voyages Co., and Waldron Steamship Co., Ltd. BLNR submitted testimony in support of the measure with an amendment. Testimony in support of the intent of this measure was provided by DOT, the State Procurement Office, Matson Navigation Company, and Sause Bros., Inc. The Department of Budget and Finance expressed concerns about the bill.

Your Committee finds that the ongoing growth of the cruise industry in Hawaii has created a need for improvements to the State's aging harbor facilities, which were never designed to handle the size of cruise vessels now visiting the islands or the volume of passengers that these vessels transport. This bill provides an innovative, alternative method of financing and expediting small scale improvements to the State's commercial and small boat harbors.

Your Committee has amended this bill as recommended by the State Procurement Office, to provide that capital advancement contracts are subject to approval by DOT or BLNR, not the administrator of the State Procurement Office. Technical, nonsubstantive amendments have also been made for purposes of clarity, consistency, and style.

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. 755, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 755, S.D. 2, H.D. 1, and be referred to the Committee on Finance.