STAND. COM. REP. NO.  54-16

Honolulu, Hawaii

                , 2016

RE:   H.B. No. 2407

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Transportation, to which was referred H.B. No. 2407 entitled:

"A BILL FOR AN ACT RELATING TO LAND DISPOSITIONS,"

begs leave to report as follows:

The purpose of this measure is to facilitate the efficient use of public lands under the jurisdiction of the Department of Transportation by allowing the Department to negotiate the disposition of lands under its jurisdiction and control without the approval of the Board of Land and Natural Resources, subject to certain conditions.

The Department of Transportation, Hawaiian Airlines, Airport Concessionaires Committee, Young Brothers, Limited, Airlines Committee of Hawaii, and Pasha Hawaii testified in support of this measure.  The Office of Hawaiian Affairs testified in opposition to this bill.  The Department of Land and Natural Resources provided comments.

     Hawaii is an isolated archipelago that is dependent on its airports and harbors for the movement of goods and people.  As a result, Hawaii's airports and harbors play a vital role in supporting and sustaining Hawaii's economy.  Numerous parcels of public lands have been set aside specifically for aeronautical and maritime use and placed under the jurisdiction of the Department of Transportation.

However, according to the Department of Transportation, the Department is currently required to obtain approval from the Board of Land and Natural Resources when it seeks to lease facilities located at airports and harbors, thus resulting in unnecessary delays.  As the Department of Transportation is directly connected to aeronautical and maritime industries and operations, your Committee finds that the Department of Transportation is best suited to manage lands under its jurisdiction that are used for aeronautical and maritime purposes.

     While your Committee understands concerns that public input and comment currently afforded through the Board of Land and Natural Resources' public hearing process would be bypassed if the Department of Transportation negotiates the disposition of public lands under its control without Board approval, your Committee believes that this measure warrants further consideration.  Your Committee respectfully requests the Committee on Water & Land to discuss these concerns further as this measure continues through the legislative process.

     Your Committee has amended this measure by:

     (1)  Changing its effective date to July 1, 2050, to encourage further discussion;

     (2)  Inserting a sunset date of July 1, 2019; and

     (3)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     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. 2407, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2407, H.D. 1, and be referred to your Committee on Water & Land.

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

____________________________

HENRY J.C. AQUINO, Chair