CONFERENCE COMMITTEE REP. NO. 167

Honolulu, Hawaii

                 , 2017

RE:    H.B. No. 997

       H.D. 2

       S.D. 2

       C.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sirs:

     Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 997, H.D. 2, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO CONCESSIONS,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

     The purpose of this measure is to provide flexibility in the granting of concession terms of up to 15 years and to permanently authorize the Department of Transportation to pursue and enter into concession contracts and other arrangements by negotiation.

     Your Committee on Conference finds that Hawaii's airports are often the first and last impression that visitors have of the State.  Imparting a positive impression of Hawaii is important for the State's tourism based economy as visitors with a positive impression are more likely to return for future visits and recommend Hawaii to others as a travel destination.  Currently, airport concession contracts are awarded to the highest bidder without consideration of the quality or variety of service to be provided.  Authorizing the Department of Transportation to enter into and award airport concession contracts through negotiation rather than simply to the highest bidder but in its judgment to a responsible person or entity providing the best value to the State that will result in higher quality services in the best interests of our state airports, which in turn will provide visitors with better first and last impressions of Hawaii.

     Your Committee on Conference has amended this measure by:

     (1)  Making clarifying language in keeping with the purpose and intent of this measure and various provisions of chapter 102, Hawaii Revised Statutes; and

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

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 997, H.D. 2, S.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 997, H.D. 2, S.D. 2, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE SENATE

ON THE PART OF THE HOUSE

____________________________ LORRAINE R. INOUYE Chair	____________________________ HENRY J.C. AQUINO Co-Chair
____________________________ KAIALI'I KAHELE Co-Chair	____________________________ SEAN QUINLAN Co-Chair