STAND. COM. REP. NO.  54

Honolulu, Hawaii

                , 2011

RE:   H.B. No. 1239

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Transportation, to which was referred H.B. No. 1239 entitled:

"A BILL FOR AN ACT RELATING TO FERRIES,"

begs leave to report as follows:

     The purpose of this bill is to establish a transportation alternative for the interisland transport of individuals and property.  Specifically, this measure:

     (1)  Establishes a Hawaii State Ferry System Authority (Authority) to provide and oversee a statewide ferry service for the transportation of people and cargo between islands;

     (2)  Establishes a Hawaii State Ferry System Special Fund to be used by the Authority to operate a statewide ferry system; and

     (3)  Provides unspecified funds for the start-up and operation of the Hawaii State Ferry System.

     The Hawaii Farm Bureau Federation and Maui County Farm Bureau testified in support of this bill.  The Department of Transportation supported the intent of this measure.  A concerned individual provided comments.

     Hawaii is a unique state made up of a chain of islands with major population centers on six of the eight main islands.  The fact that the islands of Hawaii are separated by large bodies of water makes interisland transportation difficult.  Unlike jurisdictions on the continental United States, Hawaii does not enjoy the benefits of being linked to other states, towns, or cities via the federal interstate highway system or a network of interconnected state and local highways.  Hawaii's highway system is its waterways, mainly for the transport of cargo via barge, and its skies, mainly for passenger transport via two major interisland airlines and several smaller commuter operations.  Establishing an alternative form of transportation between islands, particularly a ferry system capable of carrying passengers, cargo, and automobiles, would fill a missing link in the transport of persons and property between the islands of the State.

     However, your Committee notes the concerns raised that establishing such a ferry system, particularly one operated by the State, may be premature especially in light of the recent foray of a private entity into the establishment of a high-speed interisland passenger, automobile, and cargo ferry operation in Hawaii and that the costs of establishing such a system are unknown.  Nevertheless, your Committee finds that this measure deserves further consideration.

     As affirmed by the record of votes of the members of your Committee on Transportation that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1239 and recommends that it pass Second Reading and be referred to the Committee on Finance.

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

____________________________

JOSEPH M. SOUKI, Chair