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 S.B. No. 848, S.D. 1, entitled:

beg leave to report as follows:

The purpose of this bill is to provide financial flexibility to concessions by allowing the use of legal tender or financial instruments other than bonds to secure performance under concession contracts with the State.

The Department of Transportation testified in support of this bill.

Your Committees find that concessionaires are currently required to provide a bond to ensure performance under the terms of the concession agreement. Bonds have become increasingly expensive and difficult to obtain for airport concessionaires. This measure will provide financial flexibility and reduced costs.

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 S.B. No. 848, S.D. 1, and recommend that it pass Second Reading and be referred to the Committee on Finance.