STAND. COM. REP. NO. 2117

Honolulu, Hawaii

RE:    S.B. No. 2960

       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 Transportation and International Affairs, to which was referred S.B. No. 2960 entitled:

"A BILL FOR AN ACT RELATING TO AERONAUTICS,"

begs leave to report as follows:

     The purpose and intent of this measure is to prohibit the Department of Transportation from assessing landing fees upon air carriers operating turboprop engine air craft that provide interisland service, except between the most populous island in the State and any other island in the State.

     Your Committee received testimony in opposition of this measure from the Department of Transportation, State Attorney General, and the Airlines Committee of Hawaii.  Comments were received from Hawaiian Airlines.

     Your Committee finds that the intent of this measure is to lessen the financial burden on air carriers servicing vital rural airports, thereby mitigating the chance of a discontinuance or reduction of flights to rural airports.

     Your Committee has amended this measure by deleting the reference to turboprop engine air craft, on the recommendation of the Attorney General based on a conflict with federal regulations and unjust discrimination among air carriers.

     As affirmed by the record of votes of the members of your Committee on Transportation and International Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2960, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2960, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Transportation and International Affairs,

____________________________

J. KALANI ENGLISH, Chair