STAND.
COM. REP. NO. 604-22
Honolulu, Hawaii
, 2022
RE: H.B. No. 1432
H.D. 1
Honorable Scott K. Saiki
Speaker, House of Representatives
Thirty-First State Legislature
Regular Session of 2022
State of Hawaii
Sir:
Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1432 entitled:
"A BILL FOR AN ACT RELATING TO CONCESSIONS ON PUBLIC PROPERTY,"
begs leave to report as follows:
The
purpose of this measure is to facilitate the
provision of concession services to the public by:
(1) Increasing the initial maximum term of concession contracts from
fifteen years to twenty-five years;
(2) Exempting concessions for beach or ocean-related recreational services
from the sealed bid requirements, with certain conditions;
(3) Authorizing the county directors of parks and recreation to
designate which county parks under their respective jurisdictions are
environmentally, culturally, historically, or operationally unique for purposes
of determining whether a concession at the park is exempt from the sealed bid
requirements; and
(4) Expanding the exemption for concessions at county zoos, botanic
gardens, or county parks designated by the respective county director of parks
and recreation, in the director's sole discretion, as environmentally,
culturally, historically, or operationally unique; provided that the
concessions are awarded to responsible offerors whose proposals are the most
advantageous, rather than solely to certain nonprofit corporations.
Your Committee finds that the
existing fifteen-year maximum duration for concessions of public property makes
it difficult for agencies to find concessionaires willing to invest in the
necessary capital improvements to provide satisfactory concession services. It can be difficult for potential
concessionaires to generate sufficient revenues to support operations while
amortizing the concessions' construction and other costs over a fifteen-year
period. Therefore, your Committee finds
that it is in the public's best interest to provide flexibility and allow for a
longer lease term; however, your Committee has concerns over what the appropriate
extension should be at this time.
Your Committee has amended this measure by:
(1) Leaving
the number of years for the maximum concession term unspecified;
(2) Changing
the effective date to January 1, 2050, to encourage further discussion; and
(3) 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 Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1432, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1432, H.D. 1, and be referred to your Committee on Finance.
Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,
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____________________________ AARON LING JOHANSON, Chair |
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