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 S.B. No. 3098, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to change the boundaries of the Kakaako Community Development District by deleting the areas comprising piers 1 and 2 and the contiguous backup fast lands that serve as a foreign cargo container yard and transferring the lands to the Department of Transportation, Harbors Division.

Your Committee finds that the foreign cargo container yard capacity will be exhausted within five years. The area used for foreign cargo containers was already reduced with the development of the passenger cruise ship terminal as part of pier 2. However, it was brought to the attention of your Committee that the area that is being deleted from the Kakaako Community Development District to be transferred to the Department of Transportation also contains the foreign-trade zone under the direction of the Department of Business, Economic Development, and Tourism.

Accordingly, your Committee has amended this measure by:

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. 3098, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 3098, S.D. 2.