STAND. COM. REP. NO. 2963

Honolulu, Hawaii

RE:    H.B. No. 1811

       H.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Transportation and International Affairs, to which was referred H.B. No. 1811, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TRANSPORTATION,"

begs leave to report as follows:

     The purpose and intent of this measure is to extend the sunset date of Act 46, Session Laws of Hawaii 2012, to allow the Department of Transportation more time to culminate lease or permit negotiations and reach an agreement with airport concessionaires.

     Your Committee received testimony in support of this measure from the Department of Transportation; Airport Concessionaires Committee; Greeters of Hawaii; Island Shoppers, Inc.; Tiare Enterprises, Inc.; HMSHost; and GRL Corporation.

     Act 46, Session Laws of Hawaii 2012, provides the Department of Transportation with the authority and discretion to reach an agreement with an airport concessionaire to extend the term of the concession and to modify and amend terms of any concession contract, lease, or permit in exchange for revenue-enhancing improvements that are made or paid for by the concessionaire.  Act 46 sunsets on July 1, 2014.

     Your Committee finds that modernization and improvements at Hawaii's airport concessions have not kept pace with passenger needs and demands.  A recent study by the State indicates that various areas at our public airports are lacking in concession space by as much as forty percent, and that Hawaii's public airports are not maximizing concession revenues.  It is important that the Department of Transportation and concessionaires work together in achieving the improvements contemplated in an expeditious but fair and equitable manner, including amendments extending the term of a concession lease or permit at the Department of Transportation's discretion.

     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 H.B. No. 1811, H.D. 1, and recommends that it pass Second Reading 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