THE SENATE

S.C.R. NO.

43

TWENTY-FIRST LEGISLATURE, 2002

H.D. 1

STATE OF HAWAII

 
   


SENATE CONCURRENT

RESOLUTION

 

Encouraging state agencies to take action on transportation issues affecting the economy.

 

WHEREAS, the State's economy has been significantly impacted by the September 11, 2001, terrorist attacks, which caused a prolonged airline stoppage and a subsequent downturn in the number of domestic and international visitors arriving in Hawaii; and

WHEREAS, while the national and international effort to root out and destroy terrorist organizations worldwide has gotten underway, the tourism industry has incurred unprecedented numbers of layoffs and is threatened with an uncertain prospect for rapid and sustained recovery; and

WHEREAS, the state government and private industry must work together to design and implement new and creative approaches for addressing the various economic challenges that Hawaii will be required to address as a result of the recent national and international developments; and

WHEREAS, as an island state, Hawaii residents depend heavily on air transportation to travel between islands; and

WHEREAS, the State of Hawaii has a compelling interest in ensuring that residents and visitors are able to travel freely between islands, without being subject to exorbitant fares and irregular or inconvenient schedules; and

WHEREAS, there are many small, rural airports that serve important segments of the State's population, which must continue to be served with air transportation; and

WHEREAS, many state residents also depend on the local airlines to carry valuable and perishable cargo between islands; and

WHEREAS, there is no reliable ferry service to transport persons between islands; and

WHEREAS, for over fifty years, the State of Hawaii has been served by two local air carriers, Aloha Airlines and Hawaiian Airlines; and

WHEREAS, in December, 2001, Aloha Airlines and Hawaiian Airlines announced plans to merge into a single corporate entity; and

WHEREAS, following the federal deregulation of the airline industry in 1978, the State has no authority to influence the rates, routes, and services of any airline; and

WHEREAS, without marketplace competition or state regulation, a merged airline entity would have monopolistic power to set rates, routes, and services; and

WHEREAS, the airline merger proposal failed in the face of serious issues raised by policymakers, airline employees, and residents concerning the proposed merger's monopolistic effect on rates, routes, and service; and

WHEREAS, nevertheless, the possibility of the merger has raised a warning signal to the State and makes clear the absolutely critical need to protect the interisland air service market and to foster competition within that market to better serve Hawaii's residents and visitors; and

WHEREAS, during the 2001 Regular Session, the Legislature passed Senate Bill No. 1096, S.D. 1, H.D. 1, C.D. 1, enacted into law as Act 90, Session Laws of Hawaii 2001, authorizing the Governor, mayors, and heads of public jurisdictions to contract services to private entities as appropriate; and

WHEREAS, the Legislature also passed Senate Bill No. 752, S.D. 1, H.D. 1, enacted into law as Act 299, Session Laws of Hawaii 2001, authorizing the Board of Land and Natural Resources, subject to the approval of the Governor and Legislature, to issue leases for small boat harbors and other boating facility properties for maritime and non-maritime related activities; and

WHEREAS, the State and counties have long used the private sector to provide public services to the people of Hawaii and have benefited from this outsourcing through increased efficiency and by gaining the use of resources that are owned or have been developed by the private sector; and

WHEREAS, the Auditor, in Report No. 01-09, reported that more than $130,000,000 is needed for repair and maintenance of the various facilities maintained and operated by the Department of Land and Natural Resources, Division of Boating; and

WHEREAS, in numerous reports dating back to 1993, the Auditor has continually emphasized the need to rectify deficiencies in the state boating facilities by correcting operational deficiencies in the state boating facilities program; and

WHEREAS, private companies continue to express interest in managing and redeveloping the marina areas in Hawaii, and are committed to investing tens of millions of dollars in construction projects within the Honokohau small boat harbor; and

WHEREAS, in the absence of available state funds, this may be the only means to effect the needed repairs and development of this valuable state resource; and

WHEREAS, the creation of additional jobs, increased tax revenues, and the value added to existing facilities produced by any private capital investment in these small boat facilities would greatly benefit the State during this time of economic uncertainty; and

WHEREAS, if action is not taken soon, the State may miss the opportunity to avoid or minimize costs by utilizing the private sector's services and expertise to bring small boat facilities up to modern standards; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-first Legislature of the State of Hawaii, Regular Session of 2002, the House of Representatives concurring, that all relevant state agencies are encouraged to take action on transportation issues that affect the economy; and

BE IT FURTHER RESOLVED that all state agencies are encouraged to take all necessary steps to foster competition in the interisland air transportation market; and

BE IT FURTHER RESOLVED that the Governor and the Department of Transportation are encouraged to offer counter space and other facilities at Hawaii's airports to potential airline market entrants so that any market entrant will enjoy the same benefits and facilities as Hawaii's current interisland carriers; and

BE IT FURTHER RESOLVED that, pursuant to Chapter 171, Hawaii Revised Statutes, the Board of Land and Natural Resources is authorized to lease submerged and tidal lands of the Honokohau small boat harbor to private entities as it deems necessary for commercial, recreational, educational, and research purposes, consistent with all applicable state and federal laws; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Governor of the State of Hawaii, the Director of Transportation, and the Chairperson of the Board of Land and Natural Resources.

 

 

 

Report Title:

Encourages all relevant state agencies to take action on transportation issues that affect the economy.