STAND. COM. REP. NO. 915

Honolulu, Hawaii

RE: S.B. No. 1638

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1638, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO AIR CARRIERS,"

begs leave to report as follows:

The purpose and intent of this measure is to facilitate the provision of air carrier services for the island of Molokai.

Specifically, the measure:

(1) Establishes within the Department of Transportation the Molokai Air Carrier Subsidy Program to subsidize air carriers operating out of Molokai Airport; and

(2) Appropriates moneys for the program.

Your Committee received written comments in support of this measure from a member of the Maui County Council; P & S Refrigeration, LLC; and numerous individuals.

Your Committee received written comments on this measure from the Department of Transportation.

Your Committee finds that for more than four years, only one passenger airline has provided service to the general public at Molokai Airport. Your Committee believes that this measure will help offset the costs of providing air carrier services for the airport, which will also encourage other airlines to offer services for the island.

Your Committee has amended this measure by designating the measure's appropriation to the Department of Transportation's administration division (TRN995) for the Molokai air carrier subsidy program.

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. 1638, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1638, 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