Report Title:

Concessions, In-Bond, State Airports

Description:

Allows the DOT to enter into more than one contract for in-bond concessions at state airports.

HOUSE OF REPRESENTATIVES

H.B. NO.

55

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO THE IN-BOND CONCESSION AT STATE AIRPORTS.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The State is currently required to award the concession for the sale and delivery of in-bond merchandise to state airports to a single concessionaire. This creates a monopoly that does not exist in any other concession. This monopoly has severely limited the number of bidders for this concession, as evidenced by the fact that only one bid has been received for each of the last three leases that have been offered for bid. The combination of the size of the concession and the lack of competition for the contract has resulted in a circumstance where the State is dependent on a single concessionaire and cannot afford to let the concessionaire fail.

The purposes of this Act are to spur competition for the concession and reduce the State's dependency on a single company.

SECTION 2. Section 261-7, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) The department [shall] may enter into [a contract with no more than one person ("contractor")] contracts for the sale and delivery of in-bond merchandise at [Honolulu International Airport,] any state airport in the manner provided by law. The [contract shall] contracts may confer the right to operate and maintain commercial facilities within [the] any state airport for the sale of in-bond merchandise [and] or the right to deliver to [the] any state airport in-bond merchandise for sale to departing foreign-bound passengers[.], or both.

The department [shall] may grant [the contract] contracts to one or more persons ("contractors") pursuant to the laws of this State and may take into consideration:

(1) The payment to be made on in-bond merchandise sold at [Honolulu International Airport and] any, some, or all state airports;

(2) The payment to be made on in-bond merchandise displayed or sold elsewhere in the State and delivered to [the airport;] any, some, or all state airports;

[(2)] (3) The ability of the [applicant] applicants to comply with all federal regulations and state rules [and regulations] concerning the sale and delivery of in-bond merchandise; and

[(3)] (4) The reputation, experience, and financial capability of the [applicant.] applicants.

The department shall actively supervise the [operation] operations of the [contractor] contractors to [insure its effectiveness.] ensure that their operations are effective and efficient. The department shall develop and implement such guidelines as it may find necessary and proper to actively supervise the operations of the [contractor,] contractors, and shall include guidelines relating to the department's review of the reasonableness of [contractor's] contractors' price schedules, quality of merchandise, merchandise assortment, operations, and service to customers.

[Apart from the contract described in this subsection, the department shall confer no right upon nor suffer nor allow any person to offer to sell, sell, or deliver in-bond merchandise at Honolulu International Airport; provided that this] This section shall not prohibit the delivery of in-bond merchandise as cargo to [the Honolulu International Airport.] any state airport."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2003.

INTRODUCED BY:

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