Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 1722, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to extend further relief to concessionaires whose businesses were harmed by reduced air arrivals.

In particular this measure is divided into three parts as follows:

1. Part I of this measure seeks to accomplish the following:

1. Provide relief beyond April 30, 2002, for airport concessions still suffering from the terrorist events of September 11, 2001;
2. Allow airport concessions that are still suffering from those events but whose concessions agreements are terminated due to a new concession operator, to recover their bonds and deposits and not be barred from doing business with the State for five years as provided by the present law;
3. Provide that concessions suffering losses and damages due to termination have no right to make any claim for damages or losses against the State;
4. Avoid another legislative session or future special session to consider relief for concessions by enacting a mechanism to allow concessions to receive relief due to the events of September 11, 2001, and similar future events; and
5. Provide a force majeure provision common to most commercial leases to hold neither the State (as lessor) nor the concessionaire (as lessee) responsible for acts or causes beyond a party's control, including acts of God, sabotage, and terrorist acts;

1. Part II of this measure reduces the motor vehicle safety inspection requirement for heavy commercial vehicles from twice a year to once a year; and
2. Part III of this measure repeals the June 30, 2002, sunset date of Act 332, Session Laws of Hawaii 1993, which authorizes the establishment of the Air Carrier Commission.

With respect to part I of this measure, your Committee finds that due to the severe decline in air arrivals and departures, together with tighter security measures at airports, concessionaires are hurting as much or more than any other sector of the business community. Your Committee finds that this measure will provide needed relief during the current crisis and will establish a statutory mechanism for providing future relief if similar circumstances arise.

With respect to part II of this measure, your Committee finds that the companies operating heavy commercial vehicles regularly inspect those vehicles, and that State inspection more than once a year is unnecessary.

With respect to part III of this measure, your Committee finds that although the Air Carrier Commission authorized by Act 332, Session Laws of Hawaii 1993, was never established, it is prudent to repeal the sunset date of that Act so that the Commission can be convened if federal enabling legislation is enacted.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1722, S.D. 1, and recommends that it pass Third Reading.