Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Transportation, to which was referred H.B. No. 1230 entitled:

begs leave to report as follows:

The purpose of this bill is to:

(2) Establish the Passenger Facility Charge Special Fund.

DOT and the Airlines Committee of Hawaii testified in support of this measure.

Since 1991, the federal government has authorized the collection of PFCs to support airport improvements that were previously supported through the federally operated Airport Improvement Program which provided grant monies to airports for capital improvement projects. Currently, over 330 of the 429 commercial service airports in the United States are approved for the collection of PFCs. Of the top 100 airports in the country, only 15 do not collect PFCs, and 5 of those 15 are in Hawaii. Hawaii is one of only two states that do not collect PFCs.

Your Committee understands that, taking into account that PFCs vary from between $3.00 and $4.50 per passenger, the DOT could be taking in an estimated net revenue of between $10 million and $15 million annually, and that these funds could play an important role in the completion of capital improvement projects at our state airports.

As affirmed by the record of votes of the members of your Committee on Transportation that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1230 and recommends that it pass Second Reading and be referred to the Committee on Finance.