Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Transportation, Military Affairs and Government Operations, to which was referred S.B. No. 2330 entitled:

begs leave to report as follows:

The purpose of this measure is to exempt interstate and intrastate shipping cargo from wharfage fees at intermediate ports within the State.

Your Committee received testimony in favor of this measure from Young Brothers, Limited, and Meadow Gold Dairies. Your Committee received testimony opposing this measure from the Department of Transportation and Matson.

Your Committee finds that Hawaii's agricultural industry has much to offer in terms of fresh, quality products, many of which are highly perishable. Hawaii has become increasingly aware of the need for competitive and more accessible ways of inter-island and intrastate transportation to get our agricultural produce and products to market. This measure creates a more level playing field for Hawaii merchants.

As affirmed by the record of votes of the members of your Committee on Transportation, Military Affairs and Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2330 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.