STAND. COM. REP. NO. 733
Honolulu, Hawaii
RE: S.B. No. 1224
S.D. 1
Honorable Colleen Hanabusa
President of the Senate
Twenty-Fifth State Legislature
Regular Session of 2009
State of Hawaii
Madam:
Your Committee on Ways and Means, to which was referred S.B. No. 1224, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO AIRPORT CONCESSIONS,"
begs leave to report as follows:
The purpose of this measure is to allow periodic adjustment of airport concession rents to a reasonable and affordable level for each concession.
Specifically, this measure requires the Department of Transportation to periodically review each individual airport concession, beginning July 1, 2009, in order to adjust to a reasonable and affordable level the concession rental amounts due for the remainder of the lease contract, taking into consideration the ability of each individual concession to pay current rents, the concession's profit and loss, and the concession's capital improvement investment. This measure would be repealed on July 1, 2014.
Your Committee received three written comments on this measure. The written comments may be reviewed on the Legislature's website.
Your Committee finds that, as the local, national, and global economic downturn deepens, airport concessions in the State have suffered large losses because business volume has decreased due to fewer visitor arrivals in the State. Your Committee finds that this measure will help to alleviate some of the airport concessions' losses by periodically reviewing and adjusting the rents of each individual concession, taking into consideration specific factors.
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. 1224, S.D. 1, and recommends that it pass Third Reading.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
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____________________________ DONNA MERCADO KIM, Chair |
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