Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1401 entitled:

begs leave to report as follows:

The purpose of this measure is to authorize the Department of Transportation to establish passenger facility charges for overseas domestic and international airline passengers only.

Furthermore, this measure establishes a passenger facility charge special fund whose proceeds will be the passenger facility charges and whose disbursements will be used for capital improvement program projects. This bill also exempts the fund from being assessed for central services expenses and for contributions to the works of art special fund.

Your Committee finds that passenger facility charges are authorized under federal law to provide public agencies with an additional capital funding source to expand the national airport system. Currently, airports in the majority of states collect passenger facility charges. Your Committee finds that this measure will provide the Department of Transportation with another funding source for its capital improvements.

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. 1401 and recommends that it pass Third Reading.