STAND. COM. REP. NO. 3407

Honolulu, Hawaii

RE:    H.B. No. 2147

       H.D. 1

       S.D. 2

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred H.B. No. 2147, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CONCESSIONS,"

begs leave to report as follows:

     The purpose and intent of this measure is to provide exemptions from the public concession bidding process for airport and Stadium Authority contracts for wireless and communication services and for advertising.

     Your Committee received written comments in support of this measure from the Department of Transportation, the Stadium Authority, and the Airport Concessionaires Committee.

     Your Committee finds that the rapid development and continuing evolution of communications and advertising technologies have altered the way in which communication occurs, advertising is conducted, and sales are performed.  Personal hardware connectivity and compatibility requirements continue to evolve as technologies improve.  Thus, government contracting for certain concessions must include flexible procedures to ensure efficiency and the most beneficial economic results.

     Your Committee has amended this measure by:

     (1)  Changing "wireless and communication services" references to "electronic communication services," which includes wireless services;

     (2)  Clarifying that the Stadium Authority's exemption from the bidding process for concessions pertains to the operation of concessions providing electronic communication services and concessions consisting solely of advertising;

     (3)  Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

     (4)  Making technical nonsubstantive amendments for the purposes of clarity, consistency, and style.

     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 H.B. No. 2147, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2147, H.D. 1, S.D. 2.

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

____________________________

DAVID Y. IGE, Chair