Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committees on Transportation, Military Affairs and Government Operations and Tourism and Intergovernmental Affairs, to which was referred S.B. No. 876 entitled:

beg leave to report as follows:

The purpose of this measure is to authorize the Department of Transportation to issue special purpose facility bonds to enable a private ferry service, Rainbow Island Express, to operate interisland and intraisland ferry services.

Your Committees received testimony in support of this measure from three members of the Maui County Council and the Maritime Committee of the Hawaii Chamber of Commerce. The Department of Budget and Finance submitted technical comments on this measure.

Your Committees find that the State would benefit greatly from a regular interisland and intraisland ferry service. Residents would have the option of commuting to work via ferry, which would reduce the congestion on our highways on Oahu and would provide residents of neighbor islands an alternative to flying. Tourists would also benefit from the alternative form of transportation.

Your Committees made several amendments to this measure. First, based on the technical comments received from the Department of Budget and Finance, your Committees amended this measure to designate part II of chapter 266 as the statutory framework for these bonds.

In addition, your Committees inserted an appropriation clause, but left the amount blank for determination by the Committee on Ways and Means. Your Committees also inserted a lapsing date of June 30, 2004, for any unexpended or unencumbered balance of funds. Finally, the effective date was amended to July 1, 2001, rather than on approval.

As affirmed by the records of votes of the members of your Committees on Transportation, Military Affairs and Government Operations and Tourism and Intergovernmental Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 876, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 876, S.D. 1, and be referred to the Committee on Ways and Means.