STAND. COM. REP. NO. 2301

Honolulu, Hawaii

RE:    S.B. No. 3072

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committees on Transportation and Energy and Tourism and International Affairs, to which was referred S.B. No. 3072 entitled:

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

beg leave to report as follows:

     The purpose and intent of this measures is to establish the Hawaii Airport Authority under the Department of Transportation and to transfer the aeronautics function of the Department to the Hawaii Airport Authority beginning July 1, 2017.

     Your Committees received testimony in support of this measure from the Department of Transportation, Hawaiian Airlines, Airlines Committee of Hawaii, and Airport Concessionaires Committee.

     Your Committees find that Hawaii's air transportation planning, management, marketing, and development functions are currently spread out among a number of agencies, including the Department of Transportation's Airports Division, Hawaii Tourism Authority, Department of Health with respect to environmental concerns, and Office of Hawaiian Affairs when ceded lands issues arise.  This multijurisdictional situation has resulted in inefficiencies and conflicts that are difficult to resolve between agencies.  In addition, this situation sometimes leads to conflicting plans of action among the different agencies seeking to implement differing goals.

     This measure establishes the Hawaii Airport Authority, a single entity with overall jurisdiction, to ensure the State makes efficient use of all of its air transportation resources, which will enhance and complement other state efforts to revitalize and sustain Hawaii's economy.

Your Committees have amended this measure on the recommendation of the Department of Transportation by:

     (1)  Clarifying the powers and duties of the Hawaii Airport Authority;

     (2)  Clarifying the qualifications, selection, and duties of the Administrator and the Board of Directors of the Hawaii Airport Authority;

     (3)  Inserting provisions to enable the efficient transfer of functions, duties, and personnel from the Department of Transportation to the Hawaii Airport Authority, including the authorization for the Department of Transportation to hire consultants;

     (4)  Making the transfer effective on July 1, 2018; and

     (5)  Inserting an appropriation to assist the transfer.

     Your Committees have further amended this measure by:

     (1)  Inserting an effective date of June 22, 2022, to encourage further discussion; and

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

     As affirmed by the records of votes of the members of your Committees on Transportation and Energy and Tourism and International Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 3072, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 3072, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Transportation and Energy and Tourism and International Affairs,

________________________________ J. KALANI ENGLISH, Majority Leader

________________________________ LORRAINE R. INOUYE, Chair