STAND. COM. REP. NO.  1866-08

Honolulu, Hawaii

                , 2008

RE:   H.C.R. No. 105

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committee on Transportation, to which was referred H.C.R. No. 105 entitled:

"HOUSE CONCURRENT RESOLUTION REQUESTING THE MAYOR AND THE DIRECTOR OF TRANSPORTATION SERVICES OF THE CITY AND COUNTY OF HONOLULU AND OAHU TRANSIT SERVICES, INC., TO CONSIDER ADDING AN ADDITIONAL BUS STOP ON FARRINGTON HIGHWAY FRONTING MOUNTAINSIDE OF THE HAWAII MEDICAL CENTER WEST ON FARRINGTON HIGHWAY,"

begs leave to report as follows:

     The purpose of this concurrent resolution, as received by your Committee, is to work towards providing an easier and safer access to public transportation in West Oahu by requesting the Mayor, the Director of Transportation Services of the City and County of Honolulu, and Oahu Transit Services, Inc., to consider adding an additional bus stop on Farrington Highway fronting the mountainside of the Hawaii Medical Center on Farrington Highway.

     Prior to the hearing, your Committee drafted and posted a proposed H.D. 1 for which testimony was accepted.  As amended, this concurrent resolution attempts to address concerns raised regarding the future of Hawaii's inter-island airline industry by strongly urging the United States Congress to enact federal legislation to allow Hawaii to regulate air carriers operating between the islands in the state under Chapter 261C, Hawaii Revised Statutes.

     A concerned individual supported the proposed H.D. 1.

     The recent demise of Aloha Airlines (Aloha) has placed the inter-island airline market in a precarious position.  Although a number of air carriers currently exist, their total carrying capacity is not sufficient to replace the amount of airline lift that was lost with the departure of Aloha.  While the federal Airline Deregulation Act of 1978 preempted states from regulating inter-state air transportation, Hawaii is in an unique situation.  The United States Department of Transportation (USDOT) currently views inter-island air travel as inter-state transport by virtue of the certification that air carriers servicing the islands receive from USDOT.

     However, air transportation is the primary means by which residents and visitors travel between the major islands of our state.  In essence Hawaii's airspace is its inter-state highway system.  Disruption or loss of this means of transportation will severely impact the residents of Hawaii and may seriously affect the economy of the State.  Thus, your Committee finds that it is necessary that Hawaii be allowed to regulate inter-island air carriers.  As enactment of federal legislation is necessary to allow Hawaii to do this, Congress should be urged to enact such legislation.

     Accordingly, your Committee has amended this concurrent resolution by adopting the language contained in the proposed H.D. 1.  As amended, this measure strongly urges the United States Congress to enact federal legislation to allow Hawaii to regulate air carriers operating between islands in the state through the implementation of state regulatory statutes.

     Additionally, your Committee has amended this measure by:

     (1)  Changing its title to read: "strongly urging the United States Congress to enact federal legislation to allow Hawaii to regulate air carriers operating between islands in the State UNDER THE Hawaii Revised Statutes"; and

     (2)  Making technical, nonsubstantive amendments for purposes of clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Transportation that is attached to this report, your Committee concurs with the intent and purpose of H.C.R. No. 105, as amended herein, and recommends its adoption in the form attached hereto as H.C.R. No. 105, H.D. 1.

Respectfully submitted on behalf of the members of the Committee on Transportation,

____________________________

JOSEPH M. SOUKI, Chair