STAND. COM. REP. NO. 336

Honolulu, Hawaii

RE:    S.B. No. 689

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committees on Tourism and Government Operations and Economic Development and Taxation, to which was referred S.B. No. 689 entitled:

"A BILL FOR AN ACT MAKING AN APPROPRIATION FOR THE PACIFIC AVIATION MUSEUM AT PEARL HARBOR,"

beg leave to report as follows:

     The purpose of this Act is to appropriate moneys to plan, design, and construct phase 2 of the Pacific Aviation Museum at Pearl Harbor's facilities.

     Your Committees received testimony in support of this measure from the Pacific Aviation Museum and The Chamber of Commerce of Hawaii.

     The Pacific Aviation Museum is in the process of developing a portion of Ford Island into a world class aviation museum that will honor the patriotism, valor, and sacrifice made by aviators and their ground support personnel in the defense of freedom in the Pacific.  The new museum includes exhibits depicting World War II, the Korean War, the Cold War, the Vietnam Conflict, and current American air power.  It will feature diorama exhibits, period and reproduction aircraft, an aviation education center, a flight simulation center, a theater, a museum store, a food service area, and a library.

     The museum opened to the public on December 7, 2006, after a construction phase of approximately nine months.  The museum has been widely acclaimed as an excellent addition to the USS Arizona, USS Missouri, and USS Bowfin memorials.

     Your Committees find that additional state funds are necessary to provide the foundation for phase 2 of the museum to be housed in hangar 79 on Ford Island.  Phase 2 development will include the planning, designing, and construction to improve and restore hangar 79, which comprises 85,000 square feet.  The current cost to complete phase 2 is estimated at $33,000,000.  Phase 2 exhibits will encompass the remaining campaigns of World War II, together with an introduction to the Korean War and the Vietnam Conflict.  The museum will complete its fundraising in Hawaii over the next six months and will then launch a national campaign to fund the balance of phase 2.  Your Committees find that the State's ongoing support is extremely important in demonstrating to potential mainland funding sources the State's strong backing of the expanded museum.

     To date, the museum has raised $13,200,000 in federal, state, and private funds for phase 1, and $1,800,000 for phase 2.  The 2004 Legislature appropriated a $1,000,000 grant-in-aid for phase 1 of the museum and the 2006 Legislature appropriated $500,000 of a requested $2,000,000 for phase 2 of the museum.  The funding was administered by the Hawaii Tourism Authority. 

     The intent of this measure is to preserve aviation history and honor those who fought for our freedom.

     Your Committees have amended this measure by deleting the specific appropriated amount and by making a technical, nonsubstantive amendment for the purpose of clarity.

     As affirmed by the records of votes of the members of your Committees on Tourism and Government Operations and Economic Development and Taxation that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 689, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 689, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Tourism and Government Operations and Economic Development and Taxation,

____________________________ CAROL FUKUNAGA, Chair

____________________________ CLARENCE K. NISHIHARA, Chair