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. 2330 entitled:

begs leave to report as follows:

The purpose of this measure is to exempt from wharfage fees interstate and intrastate shipping cargo moved in to or out of the port of Honolulu.

Your Committee finds that rules of the Department of Transportation (section 19-44-65, Hawaii Administrative Rules) exempt interstate cargo originating outside Hawaii from wharfage fees. Hawaii merchants need to be able to get their products and produce to market to compete with mainland companies who ship goods on through bills of lading to the neighbor islands without paying wharfage charges. This measure will provide a level playing field for local merchants and manufacturers.

Upon further consideration, your Committee has amended the bill by changing the effective date to July 1, 2050 to stimulate further discussion of this measure. In addition, technical nonsubstantive amendments have been made for clarity and consistency.

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. 2330, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2330, S.D. 1.