Report Title:

Honolulu International Airport; Privatization; DBEDT Study

HOUSE OF REPRESENTATIVES

H.C.R. NO.

85

TWENTY-FIRST LEGISLATURE, 2001

 

STATE OF HAWAII

 
   


HOUSE CONCURRENT

RESOLUTION

 

requesting the department of Business, Economic Development, and Tourism to REPORT ON THE ADVANTAGES AND DISADVANTAGES of privatizing the honolulu international airport.

 

 

WHEREAS, the Honolulu International Airport is the first stop for most visitors traveling to Hawaii; and

WHEREAS, it is therefore vitally important that this airport be operated in a manner that leaves a positive impression to encourage tourists to return for subsequent visits; and

WHEREAS, other major airports have privatized their operations to lower costs and increase revenues; and

WHEREAS, the operation and management of that airport and its air navigation facilities are services that can be provided by the private sector more efficiently and cost effectively; and

WHEREAS, the privatization of the Honolulu International Airport will likely result in increased cost savings, more efficient services and operations, and increased tourist arrivals and return visits to Hawaii; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty-first Legislature of the State of Hawaii, Regular Session of 2001, the Senate concurring, that the Department of Business, Economic Development, and Tourism is requested to report to the Legislature on the advantages and disadvantages of privatizing the Honolulu International Airport, including its infrastructure, facilities, programs, and operations; and

BE IT FURTHER RESOLVED that the Department is requested to include in its report a review of the following issues:

(1) Whether a certain form of privatization is more feasible than others, e.g., outright sale of the facility and operations vs. contracting out only the operations;

(2) Whether the experiences of other U.S. or non-U.S. jurisdictions offer guidance or are otherwise applicable;

(3) Whether there are any legal impediments to privatization, e.g., Internal Revenue Code provisions restricting access to tax free financing if the facility is privately owned, issues of sovereign immunity, required environmental assessments, and land use and planning restrictions;

(4) Whether privatization would result in less beneficial regulation of safety, environmental, and consumer concerns, and less sensitivity to community and cultural needs; and

(5) Whether the economic benefits to the State would outweigh the costs of privatization, including those directly or indirectly resulting from the displacement of public employees, additions to the unemployment and welfare rolls, loss of income tax revenues, and other areas;

and

BE IT FURTHER RESOLVED that the Department of Transportation is requested to cooperate with the Department of Business, Economic Development, and Tourism in the course of its review; and

BE IT FURTHER RESOLVED that the Department of Business, Economic Development, and Tourism is requested to report its findings and recommendations, including any proposed implementing legislation, to the Legislature no later than twenty days before the convening of the Regular Session of 2002; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Director of Business, Economic Development, and Tourism and the Director of Transportation.

 

 

 

OFFERED BY:

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