Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 2215 entitled:

begs leave to report as follows:

The purpose of this measure is to assist smaller concessionaires at the State's airports to provide security by other than a performance bond for their concession contracts.

Specifically, this measure allows concessionaires whose contracts require an amount less than four months' rental and other charges, to give security in a form other than by hard-to-obtain performance bonds. This measure allows these concessionaires to give security in a deposit of legal tender or by various financial instruments other than performance bonds, including certificates of deposit, share certificates, cashier's checks, treasurer's checks, teller's checks, official check drawn by, or certified check accepted by a bank, savings institution, or credit union.

Your Committee believes that allowing smaller concessionaires to provide financial security for their concession contracts by other than performance bonds will provide them with much needed relief.

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 H.B. No. 2215, and recommends that it pass Third Reading.