Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Transportation, to which was referred H.B. No. 2215 entitled:

begs leave to report as follows:

The purpose of this bill is to assist smaller concessionaires operating on public property by giving the State the flexibility to accept legal tender and financial instruments other than performance bonds as security for the performance of their concession contracts.

The Department of Transportation and Legislative Committee for the Airports Concessionaires Committee testified in support of this bill.

Your Committee finds that current law requires concessionaires on public property to obtain performance bonds for their concession contracts. However, performance bonds are becoming increasingly difficult for small concession operators to obtain. Allowing smaller concessionaires to provide other forms of financial security for their concession contracts will provide them with much needed relief.

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. 2215 and recommends that it pass Second Reading and be referred to the Committee on Finance.