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 S.B. No. 2306, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to streamline the process of implementing capital improvement projects at Hawaii airports.

Upon due consideration, your Committee has amended the bill by deleting its contents and replacing it with a passenger facility charge. The charge or fee is capped at $4.50 and applies only to overseas or international passengers. The fee does not apply to interisland passengers and must comply with applicable federal laws and regulations.

Your Committee finds that the passenger facility fee will offset the additional security expenses sustained by state airport facilities since September 11 and will provide a dedicated source of funds for the continued and efficient operation of state airports.

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 S.B. No. 2306, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2306, S.D. 2.