STAND. COM. REP. NO. 2554

Honolulu, Hawaii

RE:    S.B. No. 2874

       S.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 2874, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO AIRPORT REVENUE,"

begs leave to report as follows:

     The purpose and intent of this measure is to provide the Department of Transportation with greater flexibility in generating revenue at airports through the disposition or the granting of use and occupancy of airport lands under its jurisdiction.

     More specifically, the measure:

     (1)  Deletes the requirement that any arrangement between the Department of Transportation and a tenant contain a clause that reserves to the Department, the right to repossess the land occupied by the tenant upon thirty days notice to the tenant by the Department; and

     (2)  Expands the definition of "airport-related" to include an activity that generates revenue for the airport system.

     Your Committee finds that both state law and federal regulations require the State's airport system to be economically self-supporting.  By increasing the opportunities for revenue generation at airports from non-aeronautical users, this measure will contribute to the maintenance of a healthy and self-supporting airport system.

     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. 2874, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DAVID Y. IGE, Chair