STAND. COM. REP. NO. 2926

Honolulu, Hawaii

RE: S.B. No. 2996

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2996, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO AN AIRPORTS CORPORATION,"

begs leave to report as follows:

The purpose and intent of this measure is to establish the Hawaii Airports Corporation, which shall assume all of the authority, powers, functions, duties, and responsibilities of the Department of Transportation related to aeronautics and airports

Your Committee received written comments in support of this measure from the Office of the Governor; the Department of Transportation; Hawaii Tourism Authority; two members of the Maui County Council, including the Chair; Aircraft Owners and Pilots Association; Airlines Committee of Hawaii; Airport Concessionaires Committee; American Institute of Architects; Bank of Hawaii; Canada-France-Hawaii Telescope Corp.; Chamber of Commerce Hawaii; Electrical Contractors Association; Enterprise Holdings; Hawaii Lodging & Tourism Association; Hawaii Business Roundtable; Hawaii Pacific Health; Hawaiian Airlines; Hoomanapono Political Action Committee; Japanese Chamber of Commerce & Industry of Hawaii; Kau Valley Farms; Kohala Coast Resort Association; Maui Chamber of Commerce; Maui Hotel & Lodging Association; Pulama Lanai; Sheet Metal Contractors Association; Subcontractors Association of Hawaii; and seven individuals.

Your Committee received written comments in opposition to this measure from the Office of Hawaiian Affairs and one individual.

Your Committee received comments on this measure from the Department of the Attorney General, the State Procurement Office, American Council of Engineering Companies - Hawaii, General Contractors Association of Hawaii, and Plumbing and Mechanical Contractors Association of Hawaii.

Your Committee finds that the responsibilities for Hawaii's airport planning, management, marketing, and capital development functions are currently distributed among a number of agencies. Your Committee believes that the coordinated planning and development of the State's air transportation system and infrastructure would be achieved more effectively by establishing a separate state entity with overall jurisdiction and responsibility for aeronautics and state airports.

Your Committee has amended this measure by:

(1) Inserting additional provisions relating to procurement policy requirements and the sale, gift, or exchange of public lands;

(2) Changing the appropriation for the transfer of airport functions from $3,000,000 to an unspecified amount to facilitate further discussion on the measure;

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

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

Your Committee notes the testimony of the Airport Concessionaries Committee, which requested that the measure include a requirement that one member of the Board of Directors of the Hawaii Airports Corporation represent general airport-concession interests.

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 S.B. No. 2996, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2996, S.D. 2.

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

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DONOVAN M. DELA CRUZ, Chair