Report Title:

Airports; Airport Concessions; Leases

 

Description:

Requires the department of transportation to periodically review airport concession leases.  Allows the DOT to adjust the lease rent to what is reasonable and affordable for the concession.  Sunsets 7/1/2014.  (SD1)

 


THE SENATE

S.B. NO.

1224

TWENTY-FIFTH LEGISLATURE, 2009

S.D. 1

STATE OF HAWAII

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO AIRPORT CONCESSIONS.

 

 

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

 


     SECTION 1.  Beginning July 1, 2009 and periodically thereafter as appropriate to the individual airport concession, the department of transportation shall review each airport concession contract existing as of July 1, 2009.  Upon completion of the review, the department of transportation may adjust the rent amount of the particular concession for the remainder of the lease contract, with a view towards setting a rent amount that is reasonable and affordable to the particular concession, taking into consideration factors including but not limited to:

     (1)  Ability of the concession owner to pay the rent under the current lease provision;

     (2)  Profit and loss of the concession; and

     (3)  Capital improvement investment of the concession.

     SECTION 2.  This Act shall take effect upon its approval and shall be repealed on July 1, 2014.