Provides further economic relief for airport concessionaires. (CD2)

A BILL FOR AN ACT

SECTION 1. The September 11, 2001, terrorist attacks on the United States have severely impacted Hawaii's economy. Business experience catastrophic revenue losses as a result of decreases in the number of visitors to Hawaii. The nation has been engaged in a war against terrorism on a global scale, including the conflict with Iraq. The war on terrorism is expected to continue for some time. With the increased risk of further terrorist attacks around the world, the economic welfare of the State is further threatened.

Airport concessions depend in large part on passengers and visitors traveling through Hawaii's airports. Precipitous declines in the number of visitors to Hawaii can have immediate and drastic impact on these airport concessions. The purpose of this Act is to confer upon the governor certain powers to provide immediate relief to airport concessionaires during a period of economic emergency.

SECTION 2. Notwithstanding any law to the contrary, the governor may, in the event of an economic emergency, grant rent relief to some or all airport concession lessees in amounts and upon such terms and conditions as determined by the governor, in the governor's sole discretion. As part of the authority granted to the governor hereunder, the governor may, or may permit the department of transportation to: (1) negotiate changes to the airport concession leases with the lessees and modify the airport concession leases to implement the grant of relief and (2) waive, suspend, or defer any contract obligation owed to the State during the economic emergency period, upon such terms and conditions as the governor shall deem necessary to minimize losses that are attributable to the economic emergency.

SECTION 3. If deemed necessary by the governor to implement the grant of rent relief in section 2, the governor may suspend the effect of section 171-13 as it applies to airport concession leases that are terminated during the economic emergency period.

SECTION 4. An economic emergency is an event that satisfies the following conditions:

(1) the airport concession lessees at a state airport, collectively suffer a fifteen per cent reduction in gross receipts for a period of sixty (60) days or more, computed on their collective average monthly gross receipts for the eighteen (18) months just prior to the date from which the initial request for relief is received from an airport concession lessee or lessees at the state airport; and

(2) either of the following two conditions:

SECTION 5. The period of economic emergency shall remain in effect for only so long as the governor determines, in the governor's sole discretion, to be appropriate to grant the necessary rent relief to some or all of the airport concession leases.

SECTION 6. This Act shall take effect upon its approval.