STAND. COM. REP. NO. 3665

Honolulu, Hawaii

RE: S.R. No. 128

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committees on Transportation and Public Safety, Intergovernmental, and Military Affairs, to which was referred S.R. No. 128 entitled:

"SENATE RESOLUTION REQUESTING THE HAWAII STATE DEPARTMENT OF TRANSPORTATION TO CONVENE A WORKING GROUP AND VARIOUS COMMITTEES TO CREATE AND RECOMMEND FEDERAL, STATE, AND COUNTY SUBSIDIES FOR THE TRANSPORT OF WATERBORNE CARGO CONSISTENT WITH THE FINDINGS AND RECOMMENDATIONS OF THE WATER CARRIERS WORKING GROUP'S FINAL REPORT,"

beg leave to report as follows:

The purpose and intent of this measure is to request that the Department of Transportation convene a working group and various committees to create and recommend federal, state, and county subsidies for the transport of waterborne cargo consistent with the findings and recommendations of the Water Carriers Working Group's final report.

Your Committees received testimony in support of this measure from the Hawaii Harbor Users Group.

Your Committees find that the Water Carriers Working Group convened in 2020 and issued its final report at the end of 2021. The working group found that Hawaii's communities are highly dependent on imported goods which consist of eighty percent of consumed goods. Furthermore, the working group reported that shipping markup of the goods are approximately 7.5 percent of the cost of the goods. There are no general cargo transport subsidies to offset this cost in Hawaii. Therefore, the purpose of this resolution is to request the Department of Transportation to convene a working group and various committees to create and recommend federal, state, and county subsidies for the transport of waterborne cargo consistent with the findings and recommendations of the Water Carriers Working Group's final report.

Your Committees have amended this measure by:

(1) Replacing references to a federal waterborne cargo subsidies program with federal waterborne cargo funding;

(2) Adding a representative from the Hawaii Harbor Users Group to the working group;

(3) Amending its title accordingly; and

(4) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the records of votes of the members of your Committees on Transportation and Public Safety, Intergovernmental, and Military Affairs that are attached to this report, your Committees concur with the intent and purpose of S.R. No. 128, as amended herein, and recommend its adoption in the form attached hereto as S.R. No. 128, S.D. 1.

Respectfully submitted on behalf of the members of the Committees on Transportation and Public Safety, Intergovernmental, and Military Affairs,

________________________________ CLARENCE K. NISHIHARA, Chair

________________________________ CHRIS LEE, Chair