Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Economic Development & Business Concerns and Transportation, to which was referred H.B. No. 739 entitled:

beg leave to report as follows:

The purpose of the bill is to allow the State the flexibility to accept legal tender or financial instruments other than bonds as security for performance under concession contracts.

The Department of Transportation testified in support of this measure.

Your Committees recognize the difficulty and increased costs experienced by airport concessionaires to obtain performance bonds since September 11, 2001. By allowing more flexibility in what is acceptable as security for performance under a concession contract, overall costs to the concessionaires will be reduced.

As affirmed by the records of votes of the members of your Committees on Economic Development & Business Concerns and Transportation that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 739 and recommend that it pass Second Reading and be referred to the Committee on Finance.