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. 3049 entitled:

begs leave to report as follows:

The purpose of this measure is to authorize the issuance of special facility revenue bonds for a ferry system between Iroquois Point and Ford Island to Aloha Tower and Hilton Hawaiian Village Pier.

Your Committee received testimony in support of this measure from the Department of Transportation (DOT), the three partners proposing to develop and operate the proposed ferry system, and Paradise Cruise, Ltd.

Your Committee finds that with traffic gridlock worsening every day, it is critical that alternative means of transportation be developed to allow commuters another option to get to and from work each day.

Therefore, your Committee fully supports the establishment of a ferry system, and further supports the issuance of special facility revenue bonds for that purpose.

Your Committee amended this measure based on the testimony submitted by DOT. First, your Committee deleted a portion of the legislative findings that erroneously stated that DOT had already received federal moneys for the establishment of a ferry system.

In addition, your Committee amended this measure to provide that the special facility revenue bonds be used for ferry facilities rather than to purchase ferries themselves, and amended the lapsing of balances into the general fund to provide instead that the authority to issue the bonds lapses.

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. 3049, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3049, S.D. 1, and be referred to the Committee on Ways and Means.