STAND. COM. REP. NO.  558

 

Honolulu, Hawaii

                , 2009

 

RE:   H.B. No. 1166

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

 

Sir:

 

     Your Committee on Transportation, to which was referred H.B. No. 1166 entitled:

 

"A BILL FOR AN ACT RELATING TO THE PASSENGER FACILITY CHARGE SPECIAL FUND,"

 

begs leave to report as follows:

 

     The purpose of this bill is to assist the Airports Division of the Department of Transportation (DOT) in constructing capital improvement projects (CIPs) by establishing additional financing options for these projects that:

 

(1)  Allow for the establishment of separate accounts within the Passenger Facility Special Fund; and

 

(2)  Require the transfer of funds from the passenger facility charges (PFC) into these accounts to pay debt service on bonds issued for the CIPs.

 

     DOT testified in support of this bill.

 

     PFCs were authorized by federal law in the 1990s to provide public agencies with a method of financing for the expansion of the airport system.  PFCs are assessed on departing passengers on all international and domestic overseas flights, excluding interisland flights, and are overseen by the Federal Aviation Administration.  Under Hawaii law, PFCs may only be used to directly pay costs related to airport projects approved by the Legislature.  However, it is unclear as to whether or not PFCs can be used to pay debt service on bond financing for larger projects.  This measure will amend current law to allow for such use and provide DOT with an additional means of financing larger projects.

 

     As affirmed by the record of votes of the members of your Committee on Transportation that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1166 and recommends that it pass Second Reading and be referred to the Committee on Finance.

 

 

Respectfully submitted on behalf of the members of the Committee on Transportation,

 

 

 

 

____________________________

JOSEPH M. SOUKI, Chair